HQ 953329: Country of origin determination for knit sweaters

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 953329

                          April 26, 1993

CLA-2  CO:R:C:T 953329 CAB

CATEGORY:  Classification

Ms. Catherine Kurz
Lee Yin Inc.
10603 Muirfield Drive
Suite 600
Potomac, MD 20854

RE:  Country of origin determination for knit sweaters

Dear Ms. Kurz:

     This letter is in response to the inquiry of August 18,
1992, by Lee Seah Weng, requesting a country of origin
determination and marking requirements for knitted sweaters.  The
country of origin question will be addressed in this ruling while
the labeling issue will be resolved in a separate ruling by our
Value and Marking Branch.  No sample was submitted for
examination.

FACTS:

     In your submission you state that pullover and cardigan
sweaters will be constructed of various materials including
acrylic, cotton, wool, and ramie cotton.  You propose two
different manufacturing scenarios.  In one scenario, you state
that yarn will be knitted into fabric in Singapore.  The knit
fabric will then be pre-marked into shaped panels by a computer
aided manufacturing process.  The pre-marked fabric will then be
manually cut into sweater pieces.  The garment pieces will then
be sent to Malaysia to undergo further processing.  The
processing in Malaysia will include sewing, attaching buttons,
washing, steam ironing, labeling, and packing for export to the
United States.  The manufacturing process involved in the second
proposed scenario is similar to the processing involved in the
first scenario.  The only difference between the two scenarios is
the country in which the manual cutting process will be
completed.  In the second scenario, the pre-marked fabric will be
cut into garment pieces in Malaysia.




ISSUE:

     What is the country of origin for the merchandise in
question?

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

     (iii)   The complexity of the manufacturing or processing

     (iv)    The level or degree of skill

     (v)     The value added to the article or material 

     Section 12.130(e)(1), Customs Regulations, states that an
article or material usually will be a product of a particular
country when it has been subject to weaving, knitting or
otherwise forming fabric in that country.

     
     In both of the suggested scenarios, Singapore is the country
where the fabric used to construct the finished product is
knitted.  Singapore is also the country where the knitted fabric
is pre-marked into readily identifiable sweater panels.  The pre-
marking of the fabric in Singapore dedicates that fabric to
sweater parts.  The manufacturing operation in Malaysia which
includes the cutting and sewing of pre-marked garment pieces does
not require a high degree of skill or technology.  This
processing amounts to a simple joining and finishing operation
which does not result in a substantial transformation within the
purview of Section 12.130.  As the sweater fabric is formed in
Singapore and the subsequent processing in Malaysia does not
amount to a substantial manufacturing operation, the forming and
marking of the fabric in Singapore is considered the time at
which the last substantial transformation occurred.  This
conclusion comports with the conclusion reached by Customs in
Headquarters Ruling Letter 088069, dated January 25, 1991.  In
HRL 088069 Customs determined that the last substantial
transformation of fabric that had been knitted and pre-marked
into sweater pieces in Singapore and then sent to Malaysia for
cutting and joining together into a finished sweater occurred in
Singapore. 

HOLDING:

     The country of origin of the knit sweaters under each set of
facts presented is Singapore.

     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 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