HQ 958222 - Country of origin of soft-sided computer/laptop carrying case; 19 CFR 12.130; material cut in Korea; assembly of pre-cut components in China; mere assembly is not substantial transformation; HRL's 951899 (10/31/92); 954225 (8/30/93); 956634 (9/29/94); 957700 - United States International Trade Commision Rulings

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HQ 958222

July 28, 1995

CLA-2 CO:R:C:T 958222 SK

CATEGORY: CLASSIFICATION

Justin Cho
B & H Customs Services Co.
150-40 183rd Street, ste. 224
Jamaica, N.Y. 11413

RE: Country of origin of soft-sided computer/laptop carrying case; 19 CFR 12.130; material cut in Korea; assembly of pre-cut components in China; mere assembly is not substantial transformation; HRL's 951899 (10/31/92); 954225 (8/30/93); 956634 (9/29/94); 957700

Dear Mr. Cho:

This is in response to your letter, received by Customs on June 14, 1995, in which you request a country of origin determination for a soft-sided computer/laptop carrying case. This office was provided with a sample of the finished article, as well as its unassembled components.

FACTS:

The subject computer carrying case is identified as style number 2679-00. The carrying case is specially shaped and fitted to accommodate a laptop or notebook computer and features an outer surface of man-made textile materials. The case has an assortment of accessory pockets, a top carry handle and a removable, adjustable shoulder strap. Foam padding is inserted into the inner linings of the case's fabric panels. The case closes by means of a velcro-like flap.

The material for style 2679-00 is sourced in Korea and this is also where the fabric is cut into component pieces. The component parts are then shipped to China for assembly, sewing and packing.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Section 12.130(b) of the Customs Regulations (19 CFR 12.130(b)) provides that textile products that are processed in more than one country or territory shall be products of that country or territory where they last underwent a substantial transformation. Your attention is directed to Section 12.130(e)(v) of the Customs Regulations which states that an article will usually have undergone a substantial transformation (change in country of origin) if it has undergone a substantial assembly of all cut pieces into a completed article.

Customs has long 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 Headquarters Ruling Letter (HRL) 082747, dated February 23, 1989, in which Customs determined that the assembly of jeans was not a substantial transformation and HRL 082787, dated March 9, 1989, which reached a similar conclusion with regard to a jogging suit.

In the instant case, the assembly process in China involving the sewing together of components cut from fabric in Korea does not involve sufficient skill or complexity to constitute a substantial transformation as defined by the regulations set forth supra. See HRL 951899, dated October 31, 1992, in which Customs issued a country of origin determination for soft-sided luggage manufactured in a similar manner. See also HRL 956634, datedSeptember 29, 1994.

The country of origin of style 2679-00 is Korea as that is the country where the article last undergoes a substantial transformation. It is in Korea that the article undergoes a substantial manufacturing process (cutting) which transforms the fabric into a new and different article of commerce (computer/laptop carrying cases).

HOLDING:

The country of origin of style number 2679-00 is Korea.

The country of origin 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 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 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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