HQ 957003 - Country of origin determination for women's woven tops - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1995 HQ Rulings > HQ 956976 - HQ 957063 > HQ 957003

Previous Ruling Next Ruling
HQ 957003

January 12, 1995

CLA-2 CO:R:C:T 957003 jb

CATEGORY: CLASSIFICATION

Gail T. Cumins, Esq.
Sharretts, Paley, Carter & Blauvelt, P.C. 67 Broad Street
New York, N.Y. 10004

RE: Country of origin determination for women's woven tops

Dear Ms. Cumins:

This letter is in response to your inquiry on behalf of your client, Ventura Enterprise Co., Inc., dated July 26, 1994, regarding the country of origin of certain women's woven tops. Samples were submitted to this office for examination and will be returned under separate cover.

FACTS:

The submitted garments consist of five styles of 100 percent woven polyester women's tops. In the case of each style, bolts of fabric are sourced from various Far East countries where they are also dyed and/or printed and then sent to Israel where the fabric is cut into between 6 to 19 components, depending on the particular style of the blouse or shirt. All the cut components are sent to Sri Lanka for assembly by sewing into the completed garments. The specific operations performed in Sri Lanka include joining the front and back panels, closing and setting the sleeves, setting the collar, hemming and stitching down all the seams, inspection, pressing and packing.

The submitted samples include:

Style number 294, a tank-styled (sleeveless) pullover with 1-3/4 inch shoulder straps, a scalloped neckline and a hemmed bottom

Style number 597, a short-sleeve pullover blouse with a jewel neckline, shoulder pads, a two button rear neck closure and a hemmed bottom

Style number 528, a long, hemmed sleeve, double-breasted blouse with a full front opening, shawl collar with pearls and appliques, self fabric buttons, shoulder pads, and a hemmed bottom

Style number 471, a long sleeve blouse with cuffs, a jewel neckline, a full front opening, a placket which conceals the buttons, shoulder pads and a hemmed bottom

Style number 470, a long sleeve shirt-type blouse with cuffs, a shirt-type collar, a full front opening secured by a seven button closure, shoulder pads and side slits

ISSUE:

What is the 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 samples 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, 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, was a complex assembly operation resulting in a substantial transformation of those component parts into a long sleeve shirt, i.e., a tailored garment. 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).

A "tailored" garment is defined as:

There are two aspects to this term, one refers to style, the other to workmanship.

Tailored Styling: This refers to apparel that is form fitting, with the basic style lines used in men's business suits and topcoats. A tailored garment holds a fixed shape approximating the human anatomy in the same way as does a man's business suit, with little or no fullness incurred by gathers or draped flares.

Tailored Workmanship: This refers to the precision and finish of the seams and the stitching. All sewing must be precise with regard to even stitch size, seam and stitching widths, and the alignment of sewing lines (devoid of crookedness or kinks). Also, no seam of the finished garment should show a raw edge to the wearer or viewer...

Tailored workmanship or tailoring does not refer to hand sewing as such; it does not matter whether the sewing is done by hand or machine; what makes a garment tailored pertinent to workmanship follows: 1. Sewing and pressing precision
2. Finished seams with no fray or protrusion 3. A press that gives the finished garment the smooth and shapely silhouette that it is supposed to have, without wrinkles or uncalled-for creases on the surface of the goods used.

George E. Linton, The Modern Textile and Apparel Dictionary at 567, (1973).

Though HQ 953641 and HQ 953638 regarded men's tailored shirts, parallels can be drawn in respect to the submitted women's garments. Men's tailored shirts have prominent features which render them "tailored garments". Namely, these are a full front opening with placket, cuffs, collars, yokes, and usually a fabric composition of traditional oxford cloth.

Women's tailored shirts or blouses on the other hand, have many of the features found on men's tailored shirts (or a modified version thereof), but not all. For example, similar to men's shirts, women's tailored shirts or blouses will have collar and cuffs, but no yokes, and unlike the traditional men's tailored shirts, the
fabric used to make the women's tailored shirts or blouses will utilize other fabrics such as silk or man-made fibers. Additionally, a placket on a woman's shirt or blouse is distinguishable from that found on a men's tailored shirt.

Placket is defined as:

Word used since the 16th c. for slit at neck, side, front, back or wrist in dress, blouse, pants, or skirt to facilitate taking garment on and off... Charlotte Mankey Calasibetta, Fairchild's Dictionary of Fashion at 437, (1973).

Generally, a man's placket on the face of the shirt is an additional piece of narrow material stitched on both sides and usually concealed under a tie. Women's plackets on the other hand, don't require a separate piece of material stitched on both sides and are not concealed under a tie. Yet on a woman's tailored shirt or blouse additional features are found which require assembly, namely shoulder pads and interfacings.

The differences in fabric composition, placket design and presence or absence of yokes are in our opinion stylistic differences, rendering the shirt purely a "men's" or "women's" garment. Thus, to say that a woman's shirt or blouse is not tailored because it lacks a yoke or because of the difference in placket construction, would be in error. A woman's garment, so long as it meets the definition for tailored, i.e., as it relates to workmanship, equally merits qualification as a tailored garment.

In the case of style numbers 471 and 470, the garments reflect assembly that yields the "tailored workmanship" that would confer country of origin. Style number 471 has a front opening with placket, cuffs and shoulder pads. Style number 470 has the collar, cuffs, front opening with placket and shoulder pads. These shirts have finished seams and smooth and shapely silhouettes that are the result of a precise and complex sewing process.

Style numbers 294, 597 and 528, do not, in our opinion have the same type of complex sewing. Style numbers 294 and 597 have no front openings, nor any collars or plackets. Though style number 528 has a front opening and collar it is not the same type of collar or front opening with placket that is seen on a tailored garment, yielding a smooth silhouette.

Your reference to HQ 951426, dated April 8, 1992, in support of your claim that the country of origin of all the submitted samples is the country where cutting takes place, is distinguishable from style numbers 471 and 470. 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 shirts. As such, a determination that the assembly process in HQ 951426 was a simple one, was based on information provided by that importer, regarding that particular article.

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 case of style numbers 471 and 470, country of origin is conferred at the time of assembly of the component parts into the completed garment, i.e., in Sri Lanka. In the case of style numbers 294, 597 and 528, country of origin is conferred in Israel. It is at that time that the fabric is cut into the component parts and a substantial transformation occurs.

HOLDING:

The country of origin of style numbers 471 and 470 is Sri Lanka, the country of assembly. It is at the assembly process that the textile products undergo a substantial transformation and are transformed into new and different articles of commerce.

The country of origin of style numbers 294, 597 and 528 is Israel, the country where the cutting takes place. It is at the cutting process that the textile products undergo a substantial transformation and are transformed into new and different articles of commerce.

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

Previous Ruling Next Ruling