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HQ 956798




November 10, 1994

CLA CO:R:C:T 956798 jb

CATEGORY: CLASSIFICATION

TARIFF NO.: 6203.42.4010; 6203.42.4015

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 men's pants

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 two pairs of men's woven cotton pants. Samples were submitted to this office for examination.

FACTS:

The submitted samples, referenced style numbers 1611 and R-15(PP), consist of a pair of men's cotton denim jeans and cotton chino twill pants, respectively. You state that each of the styles will also be produced in boys' sizes. Style number 1611 is a men's 100 percent cotton woven five pocket denim jean featuring a classic style and consisting of four major leg panels and additional components such as belt loops, patch pockets and back yokes. Style number R-15(PP) is a men's 100 percent cotton chino twill pant and also consists of four major leg panels and minor components such as pocket flap and belt loops. The front of the pant features two pleats on each hip and a button-and-zipper fly, two "welt"-style side pockets, a buttoned welt pocket at the left back hip, a flap pocket at the right back hip, and a six loop waistband.

The reference to countries A, B, C, D, E, F and G represent different countries for style numbers 1611 and R-15(PP). The assembly operation for style 1611, is as follows:

Country A
fabric is sourced linings, trims and packing materials are sourced

Country B
zippers are sourced

Country C
marking and cutting of the material into component parts

Country D; or E; or F; or G
sewing, assembly and packaging

The assembly operation for style number R-15(PP), is as follows:

Country A
fabric and linings are sourced

Country B
trims and packing materials are sourced

Country C
zippers are sourced

Country D
marking and cutting of material into component parts

Country A; or E; or F; or G
garments will be sewn, assembled and packaged

In both instances, the garments 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:

Classification

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), is in accordance with the General Rules of Interpretation (GRI). GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. Where goods cannot be classified solely on the basis of GRI 1, the remaining GRI will be applied, in the order of their appearance.

Chapter 62, HTSUSA, provides for articles of apparel and clothing accessories, not knitted or crocheted. Heading 6203, HTSUSA, provides for, inter alia, men's trousers. Style number 1611 is classifiable in subheading 6203.42.4010, HTSUSA, which is the provision for men's blue denim trousers, or subheading 6203.42.4035, HTSUSA, for boys' blue denim trousers. Style number R-15(PP) is classifiable in subheading 6203.42.4015, HTSUSA, which is the provision for men's other cotton trousers, or subheading 6203.42.4045, for boys' other cotton trousers.

Country of Origin

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.

The factors to be applied in determining whether or not a manufacturing operation is substantial are set forth in 19 CFR 12.130(d). 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)(iv) provides that an article or material usually will be a product of a particular foreign territory or country when there has been both a cutting of fabric into parts and the assembly of those parts into the completed article.

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. 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 086665, dated March 23, 1990; HQ 951169, dated April 1, 1992; HQ 951437, dated July 17, 1992).

The sewing operation involved in both the case of style number 1611 and R-15(PP) involves the simple assembly of several cut pieces to form the men's pants. Both styles are non-tailored, "casual" wear men's trousers. The sewing of the major panels and additional components does not involve the complex sewing operation contemplated by Section 12.130(e)(1)(v), as for example, that found in the assembly and tailoring of all cut pieces of suit-type jackets, suits and shirts.

It is the cutting operation which materially changes the fabric into designated garment parts. This constitutes a substantial transformation of that fabric.

Washing, pressing and packing fall within the language of section 12.130(e)(2)(i) which states:

An article or material usually will not be considered to be a product of a particular foreign territory or country, or insular possession of the U.S. by virtue of merely having undergone any of the following:

Simple combining operations, labeling, pressing, cleaning or dry cleaning, or packaging operations, or any combination thereof;

Consequently, the country of origin of the subject garments is the country in which the cutting of the material into component parts takes place.

HOLDING:

The country or origin of submitted style numbers 1611 and R-15(PP) is country C and country D, respectively. It is in these countries where the cutting occurs and where the last substantial transformation takes place.

When produced in men's sizes, style number 1611, is classified in subheading 6203.42.4010, HTSUSA, which provides for inter alia, men's or boys' trousers, of cotton, men's, blue denim. When produced for boys' sizes, style number 1611 is classifiable in subheading 6203.42.4035, which provides for, inter alia, men's or boys' trousers, of cotton, boys', blue denim. The applicable rate of duty is 17.7 percent ad valorem and the quota category is 347.

When produced in men's sizes, style number R-15(PP), is classified in subheading 6203.42.4015, HTSUSA, which provides for inter alia, men's or boys' trousers, of cotton, men's, other. When produced in boys' sizes, style number R-15(PP) is classifiable in subheading 6203.42.4045, HTSUSA, which provides for inter alia, men's or boys' trousers, of cotton, boys', other. The applicable rate of duty is 17.7 percent ad valorem, and the quota category is 347.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent negotiations and changes, we suggest that your client check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an issuance of the U.S. Customs Service which is updated weekly and is available at the local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, your client should contact the local Customs office prior to importing the merchandise to determine the current status of any import restraints or requirements.

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

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