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HQ 956321




May 5, 1994

CLA-2 CO:R:C:T 956321 HP

CATEGORY: CLASSIFICATION

Mr. Allan R. Grant
International Development Systems Inc.
733 15TH Street, N.W.
Suite 520
Washington, D.C. 20005

RE: Country of origin of women's knit pullover shirts.

Dear Mr. Grant:

This is in reply to your letter of April 26, 1994. That letter concerned the country of origin of knit shirts, produced in Singapore and Indonesia. Please reference your client Poly-Allied Knitwear Ltd., Singapore.

FACTS:

The merchandise at issue consists of 65% polyester / 35% cotton blended knit polo-type women's shirts. The fabric for the shirts is knitted, dyed and cut to shape in Singapore. The garment pieces are then sent to Bitan Island, Indonesia, where sewing and packaging are done. Once assembled, the finished shirts will be shipped to the U.S.

ISSUE:

Whether the sewing operations taking place in Indonesia substantially transform the Singapore shirt panels?

LAW AND ANALYSIS:

Textile commodities produced in more than one foreign country are subject to the country of origin requirements delineated 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 substantial transformation.
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 creation of a fabric from yarn and cutting of that fabric into garment parts in one country causes those garment parts to be considered a product of that country. See Section 12.130(e)(iii) & (iv), Customs Regulations (19 C.F.R. ?12.130(e)(iii) & (iv)). 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. Accordingly, the knit shirts at issue are considered a product of Singapore.

HOLDING:

As a result of the foregoing, the instant merchandise is considered a product of Singapore.

The holding in this ruling applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in ?177.9(b)(1), Customs 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 information 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 country of origin. In such a case, it is recommended that a new ruling request be submitted in accordance with ?177.2, Customs Regulations (19 C.F.R. ?177.2). In your letter, you requested that the sample be returned. Recent budgetary constraints have forced the Customs Service to discontinue return shipment of oversized samples. Should you wish to make arrangements either for pickup or prepaid shipping, please contact Howard Plofker of my staff at (202) 482-7050. If we do not hear from you within 30 days from the date of this letter, we will destroy the sample.

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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