HQ 0955784 - Country of origin of T-shirts. Mere assembly. - United States International Trade Commision Rulings

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HQ 955784

February 17, 1994

CLA-2 CO:R:C:T 955784 HP

CATEGORY: CLASSIFICATION

Mr. Mark Rave
ClearFreight
P.O. Box 280665
San Francisco, CA 94128

RE: Country of origin of T-shirts. Mere assembly.

Dear Mr. Rave:

This is in reply to your letter of January 18, 1994. That letter concerned the country of origin of t-shirts, produced in China and Guatemala. Please reference your client China Overseas Threads, Inc.

FACTS:

The merchandise at issue consists of Chinese fabric event- ually used to construct T-Shirts. The following two scenarios apply:

Scenario I

Operation in China Operation in Guatemala

1. 100% knitted jersey solid 1.Overlock shoulder. dyed piece goods manufactured. 2.Overlock neck band. 2. Piece goods are cut to body 3.Tape shoulder plus label. parts, including front and back 4.Cover stitch neck band ribbing. body, left and right sleeves, 5.Overlock the shoulder sleeves. neck ribbing. 6.Close the body overlock.
3. The front body part is 7.Cover stitch the sleeve arm holes. screen printed. 8.Finishing cover stitch the bottom. 4. The cut parts are shipped 9.Clean and pack. to Guatemala. 10.Put in box and ship to U.S.

Scenario II

Operation in China Operation in Guatemala

1. 100% knitted jersey solid 1.Overlock shoulder. dyed piece goods manufactured. 2.Overlock neck band. 2. Piece goods are cut to body 3.Tape shoulder plus label. parts, including front and back 4.Cover stitch neck band ribbing. body, left and right sleeves, 5.Overlock the shoulder sleeves. neck ribbing. 6.Close the body overlock.
7.Cover stitch the sleeve arm holes.
8.Finishing cover stitch the bottom.
3. The cut parts are shipped 9.Clean and pack. to Guatemala. 10.Put in box and ship to U.S.

ISSUE:

Whether the assembly in Guatemala of the cut patterned pieces results in a substantial transformation for purposes of 12.130, Customs Regulations?

LAW AND ANALYSIS:

Textile commodities produced in more than one foreign country are subject to the country of origin requirements de- lineated in section 12.130 of the Customs Regulations (19 C.F.R. 12.130). These regulations provide that:

. . . a textile product . . . which consists of materials produced or derived from, or processed in, more than one foreign . . . country shall be a product of that foreign . . . country where it last underwent a sub- stantial transformation.

12.130(b). A textile product undergoes a substantial transfor- mation when it is ". . . transformed by means of substantial manufacturing or processing operations into a new and different article of commerce."

Section 12.130 of the regulations outlines the criteria used to determine the country of origin for textiles and textile products. Specifically, this provision of the regulations is considered in determining whether a textile product has undergone substantial manufacturing or processing operations, and what constitutes a new and different article of commerce. The factors considered are not exhaustive. In fact, "one or any combination of criteria may be determinative, and additional factors may be considered." In determining whether merchandise has undergone substantial manufacturing or processing operations, we consider the (1) physical change in the material or the article; (2) time involved; (3) complexity of the operations; (4) level or degree of skill and/or technology required; and (5) value added to the article in each country.

It is well accepted that the cutting of fabric into nec- essary patterned pieces and assembly of those pieces into the completed article results in a substantial transformation of the fabric. See HRL 734394 of February 10, 1992; HRL 556070 of July 1, 1991. A substantial transformation does not occur, however, when those patterned pieces are shipped to a third country and merely assembled. See HRL 555489 of May 14, 1990; HRL 086229 of April 11, 1990; HRL 731036 of July 18, 1989.

Examining the merchandise at issue, it is our opinion that the assembly operations performed in Guatemala do not substan- tially transform the t-shirts into products of Guatemala. Those operations constitute a simple sewing of the cut patterned pieces into a t-shirt. This assembly is distinguished from the complex sewing operations required when manufacturing a suit, suit-type jacket, or tailored shirt. See 12.130(e)(v), Customs Regu- lations. The t-shirts would therefore be considered products of the country where the fabric was created and the patterned pieces cut to shape.

HOLDING:

As a result of the foregoing, the t-shirts are considered a product of China, where the fabric was created and the patterned pieces cut to shape.

The holding in this ruling applies only to the specific factual situation and merchandise identified in the ruling re- quest. This position is clearly set forth in 177.9(b)(1), Cus- toms Regulations (19 C.F.R. 177.9(b)(1)). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Should it subsequently be determined that the infor- mation furnished is not complete and does not comply with 19 C.F.R. 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of count- ry of origin. In such a case, it is recommended that a new ruling request be submitted in accordance with 177.2, Customs Regu- lations (19 C.F.R. 177.2).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John Durant, Director
Commercial Rulings Division

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