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HQ 956632


August 18, 1994

CLA-2 CO:R:C:T 956632 GG

CATEGORY: CLASSIFICATION

Robert T. Stack, Esq.
Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway, 43rd Floor
New York, New York 10036-7900

RE: Country of Origin of Dressing Gowns (Kimonos)

Dear Mr. Stack:

This is in response to your letter of June 10, 1994, concerning the country of origin of dressing gowns (kimonos) to be imported by your client, Intimo, Ltd. Representative samples of a dressing gown and the component parts thereof have been submitted with your ruling request.

FACTS:

The apparel in question is a dressing gown (kimono), known as Style 530000. It consists of the following components: three body panels, two front and one back; two sleeve panels; two patch pockets with separate pocket edging; two sleeve cuffs; a sash belt, two belt loops, and two 4-inch wide bands of fabric that will be used to create a trim extending the length of the kimono's front opening and around the neck. The kimono also may contain piping at the pockets, cuffs and trim.

The kimonos will be produced in various fabrics, colors and prints. The fabrics will be obtained from sources in Hong Kong, Korea or the People's Republic of China ("China"). The accessories (labels and any piping for the pocket, cuffs and trim) also will be sourced from various countries, including Hong Kong and China.

The fabric will be cut with an electric knife into the various components in Hong Kong. The assembly operations will occur in China and will consist of sewing the components together by machine to create the completed kimonos. The garments will be washed, pressed and folded, have hang tags attached, and be packed for shipment to the United States in China. The piping, if present, will be cut to length in China.

ISSUE:

What is the country of origin of the kimonos?

LAW AND ANALYSIS:

Country of origin determinations for textile products are made pursuant to Section 12.130 of the Customs Regulations (19 CFR 12.130). Section 12.130(b) provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

Section 12.130(d)(1) of the Customs Regulations states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:

(i) Commercial designation or identity; (ii) Fundamental character; or (iii) Commercial use.

Section 12.130(d)(2) of the Customs Regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article; (ii) The time involved in the manufacturing or processing; (iii) The complexity of the manufacturing or processing; (iv) The level or degree of skill and/or technology required in the manufacturing or processing operations; and
(v) The value added to the article or material.

Section 12.130(e)(1) of the Customs Regulations describes manufacturing or processing operations from which an article usually will be considered a product of the country in which those operations occurred. Section 12.130(e)(1)(v) provides the following:

Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles which have been cut from fabric in another foreign territory or country, or insular possession, into a completed garment (e.g. the complete assembly and tailoring of all cut pieces of suit-type jackets, suits, and shirts).

According to Treasury Decision (T.D.) 85-38 (19 Cust. Bull. 58, 70; 50 FR 8714), the final document rule establishing 19 CFR 12.130:

[T]he assembly of all the cut pieces of a garment usually is a substantial manufacturing process that results in an article with a different name, character, or use than the cut pieces. It should be noted that not all assembly operations of cut garment pieces will amount to a substantial transformation of those pieces. Where either less than a complete assembly of all the cut pieces of a garment is performed in one country, or the assembly is a relatively simple one, then Customs will rule on the particular factual situations as they arise, utilizing the criteria in section 12.130(d).

Customs has consistently determined that cutting fabric into garment pieces constitutes a substantial transformation of the fabric, resulting in the pieces becoming products of the country where the fabric is cut. See Headquarters Ruling Letter (HRL) 955123, dated January 27, 1994; HRL 954448, dated August 19, 1993; HRL 953698, dated July 19, 1993.

It has also been Customs' position that the mere assembly of goods by simple combining operations, trimming or joining together by sewing is not enough to substantially transform the components of an article into a new and different article of commerce. See HRL 953697, dated July 26, 1993; HRL 955123, dated January 27, 1994; HRL 952647, dated January 27, 1993.

In this instance, the kimonos will be assembled in China through simple sewing operations. The sewing will not be complex enough to be deemed a substantial assembly under Section 12.130(e)(1)(v). The last substantial transformation will occur in Hong Kong, where the fabric is cut into garment pieces. The cutting of the piping to length in China will have no effect on origin because the piping is de minimus in relation to the garments at issue. See HRL 954711, dated January 19, 1994.

HOLDING:

The country of origin of the kimonos is Hong Kong.

This ruling is issued pursuant to the provisions of Part 177 of the Customs Regulations (19 CFR Part 177). The holding in this ruling only applies to the specific factual situation presented and to the merchandise identified in the ruling request. If the information furnished is not accurate or
complete, or there is a change in the factual situation, this ruling will no longer be valid. In such an event, a new ruling request should be submitted.

Sincerely,

John Durant
Director, Commercial

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