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HQ 956797




November 10, 1994

CLA-2 CO:R:C:T 956797 jb

CATEGORY: CLASSIFICATION

TARIFF NO.: 6205.20.2050

Judith A. Schechter, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman 245 Park Avenue
New York, N.Y. 10167-0002

RE: Classification and country of origin determination for a men's woven shirt; substantial transformation where assembly occurs

Dear Ms. Schechter:

This letter is in response to your inquiry of July 19, 1994, on behalf of your client, Wing Tai Garment International, Ltd., requesting a classification and country of origin determination for a men's cotton woven shirt. A sample was submitted to this office for examination.

FACTS:

The submitted sample, advertised as "THE GREAT SHIRT", "OVERSIZED FIT", referenced style number F94M1212, is a men's 100 percent cotton woven long-sleeve flannel shirt. The garment consists of two front panels, one back panel, two sleeve components and additional components such as plackets, pocket flaps and cuffs. The garment features "oversized" styling, two front buttoned flap pockets, buttoned cuffs and sleeves with plackets, a full frontal placket opening with a seven button left-over-right closure, a collar, and a back yoke. You state that the garment is not manufactured in specific collar sizes or sleeve lengths, that it is intended for casual wear without a tie or jacket, and that it will also be produced for boys' sizes.

The assembly operation for the shirt is as follows:

COUNTRY A
fabric and linings are sourced
COUNTRY B
trims and packing materials are sourced

COUNTRY C
marking and cutting of the material into component parts

COUNTRY A; or D; or E; or F
garments will be sewn, assembled and packaged

The shirt will be washed, pressed and packaged in the country of assembly.

ISSUE:

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

LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations (19 CFR 12.130) sets forth the principles of country of origin for textiles and textile products subject to Section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854).

Pursuant to 19 CFR 12.130(b), the standard of substantial transformation governs the country of origin determination where textiles and textile products are processed in more than one country. The country of origin of textile products is deemed to be that foreign territory or country where the article last underwent a substantial transformation. Substantial transformation is said to occur when the article has been transformed into a new and different article of commerce by means of substantial manufacturing or processing.

Section 12.130(d) of the Customs Regulations sets forth criteria in determining whether a substantial transformation of a textile product has taken place. This regulation states that 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) states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in: (1) Commercial designation or identity, (ii) Fundamental character or (iii) Commercial use.

Section 12.130(d)(2) of the Customs Regulation 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 as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

Section 12.130(e)(1) 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)(v) states that an article will be a product of a particular foreign country, when it has undergone prior to importation into the U.S. in that foreign country:

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 of all cut pieces of suit-type jackets, suits and shirts).

We have previously held that cutting of fabric into pattern pieces constitutes a substantial transformation of the fabric, resulting in the apparel pieces becoming a product of the country where the fabric is cut (See HQ 955125, dated January 27, 1994, HQ 953697, dated July 26, 1993 and HQ 952531, dated November 25, 1992, addressing the country of origin determination for similar merchandise). Customs has also held that the mere assembly of goods entailing 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 HQ 082747, dated February 23, 1989; HQ 951169, dated April 1, 1992; HQ 951437, dated July 17, 1992; HQ 734392, dated August 4, 1992; HQ 953489, dated June 14, 1993; HQ 953698, dated July 19, 1993).

Section 12.130(e)(i)(v) makes note that there must be substantial assembly by sewing or tailoring of a suit-type garment for substantial transformation to occur. Customs has ruled numerous times on garments such as the subject sample where the complexity of the assembly process was determined to confer country of origin. HQ 953641, dated August 19, 1993, addressing a men's sport shirt, and HQ 953638, dated August 19, 1993, addressing a men's acrylic shirt, garments virtually identical to the submitted sample in that the garments have a "casual and relaxed" look and fit, stated that:

To determine whether origin is conferred when an article is transformed from its numerous constituent parts to what is eventually recognized as the completed garment, i.e., a shirt, one must first define "substantial assembly".

Substantial assembly can be defined as that operation, whether by sewing or tailoring, when all the components of the garment are attached together to form that completed shirt...

In both those cases it was determined that the assembly of the various components, namely, sleeves, collar, cuffs, full-front opening and yokes, resulted in a substantial transformation of those component parts into a long sleeve shirt. In addition, a determination that substantial transformation occurs at the time of assembly of the individual component parts is in adherence to the terms set out by Section 12.130(e)(1) of the Customs Regulations (See also, HQ 075323, dated April 1, 1985; HQ 555608, dated January 27, 1990; HQ 952750, dated October 16, 1992; HQ 953639, dated August 19, 1993; HQ 953640, dated August 19, 1993).

Your reference to New York ruling letter (NY) 893507, dated January 18, 1994, in support of your claim that the country of origin of the submitted sample is the country where cutting takes place, is distinguishable from the subject garment. In the former case of the women's garment, the facts of the case, i.e., the description of the garment and complexity of the assembly process described therein, are not identical to the case of the submitted men's shirt. As such, a determination that the assembly process in NY 893507 was a simple one, was based on information provided by that importer, regarding that particular article.

Though the subject garment is a casual, non-tailored garment, sewing the individual components of the shirt together, particularly the long sleeves, collar, cuffs, yoke and plackets, to form the completed shirt, necessitates careful and skilled sewing in the assembly. It is the opinion of this office that this assembly is beyond a simple sewing operation and thus qualifies as a substantial assembly process.

A review of the cited cases and other cases involving shirts, thus looks to both the structure of the shirt and the complexity of the assembly process. In the instant case country of origin is conferred at the time of assembly of the component parts into the completed garment. It is at such time that a substantial transformation occurs.

HOLDING:

The country of origin of the submitted merchandise, referenced style number F94M1212, is the country of assembly. It is at the assembly process that the textile product undergoes a substantial transformation and is transformed into a new and different article of commerce.

When produced in men's sizes, style number F94M1212 is classified in subheading 6205.20.2050, HTSUSA, which provides for, inter alia, men's or boys' shirts, of cotton, other, other, other, men's. When produced in boys' sizes, style number F94M1212 is classified in subheading 6205.20.2060, HTSUSA, which provides for, inter alia, men's or boys' shirts, of cotton, other, other, other, boys'. The applicable rate of duty is 21 percent ad valorem and the quota category is 340.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in Section 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 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. Accordingly, it is recommended that a new ruling request be submitted in accordance with Section 177.2, Customs Regulations (19 CFR 177.2).

Sincerely,

John Durant, Director
Commercial Rulings Division

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