HQ 956636 - Country of origin of pants, shorts, and shirts; Section 12.130, Customs Regulations - United States International Trade Commision Rulings

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HQ 956636

October 21, 1994

CLA-2 CO:R:C:T 956636 CAB

CATEGORY: CLASSIFICATION

Scott E. Rosenow, Esq.
Stein Shostak Shostak & O'Hara
1620 L Street, N.W.
Washington, D.C. 20036-5605

RE: Country of origin of pants, shorts, and shirts; Section 12.130, Customs Regulations

Dear Mr. Rosenow:

This is in response to your inquiry of June 9, 1994, requesting a country of origin ruling on behalf of Bugle Boy Industries of Simi Valley, California, concerning certain boys' pants, shirts, and shorts. Samples were submitted for examination.

FACTS:

The merchandise at issue is a pair of pants, shorts, and a shirt. The pants which are constructed of 100 percent woven cotton fabric contain a waistband, zippered fly front, side pockets, a rear patch pocket, and double front pleats. The shorts are made of 100 percent woven cotton fabric, have a partial elasticized waistband with belt loops, a zippered fly front, side pockets, and a rear patch pocket. The 100 percent woven cotton shirt contains short sleeves, a fully opened front with buttons for closure, a breast pocket with a "Bugle Boy" insignia, and a rear pleat extending from the top of the neck area to the hemmed bottom.

The processing of the garments is as follows: Fabric used to make the pants, shorts, and shirt will be cut into garment pieces and sewn into a completed garment in one country. This country may be Indonesia, the Philippines, Bangladesh, Sri Lanka, or Taiwan. The finished garment will then be shipped to China to undergo a "wrinkle free process". The process involves pre-washing the garments and dipping them in a chemical which results in the wrinkle free condition. The garments are then pressed, hangtags are attached, and packaged for exportation to the United States.

ISSUE:

What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

Country of origin determinations for textile products are subject to Section 12.130, Customs Regulations (19 CFR 12.130). Section 12.130 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), Customs Regulations, sets forth criteria for determining whether a substantial transformation of a textile product has taken place. This regulation states these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered.

Section 12.130(d)(1), 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), Customs Regulations, states that for 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 operation;

(iii) The complexity of the manufacturing or processing operation;

(iv) The level or degree of skill and/or technology in the manufacturing or processing operations; and,

(v) The value added to the article or material.

Section 12.130(e)(1), Customs Regulations, describes manufacturing or processing operations from which an article will usually be considered a product of the country in which those operations occurred. Section 12.130(e)(1)(iv) specifically provides that the cutting of fabric into parts and the assembly of those parts into the completed article will be a manufacturing operation that will usually result in an article being considered a product of the country in which those operations occurred.

Section 12.130(e)(2), Customs Regulations, describes the manufacturing or processing operations from which an article will usually not be considered to be a product of a particualr country by virtue of merely having undergone the particular operations. Section 12.130(e)(2)(iv), Customs Regulations, provides examples of some these simple operations that will not effect the country of origin of an article. These enumerated examples are as follows: one or more finishing operations on yarn, fabrics, or other textile articles, such as showerproofing, superwashing, bleaching, decating, fulling, shrinking, mercerizing, or similar operations. Section 12.130(e)(2)(i) includes packaging operations as a simple operation that will not effect the origin of a product.

In this instance, the wrinkle free processing and packaging in China are simple finishing operations that amount to the simple manufacturing operations cited in Section 12.130(e)(2)(i)&(iv). This processing does not confer country of origin because it does not amount to a substantial manufacturing operation. The cutting and assembly process completed within one of the enumerated countries, however, is a substantial manufacturing operation specifically provided for in Section 12.130(e)(1)(iv). Therefore, the garments in question are products of the country in which they are cut and assembled.

HOLDING:

The subject merchandise are products of the country where the fabric is cut and assembled into the finished garment.

This ruling is issued pursuant to the provisions of Part 177 Customs Regulations (19 CFR Part 177). The holding in this ruling only applies to the specific factual situation presented and 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 Rulings Division

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