HQ 955784: Country of origin of T-shirts. Mere assembly.

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 955784

                        February 17, 1994

CLA-2 CO:R:C:T  955784 HP

CATEGORY:  Classification

Mr. Mark Rave
ClearFreight
P.O. Box 280665
San Francisco, CA 94128

RE:  Country of origin of T-shirts.  Mere assembly.

Dear Mr. Rave:

     This is in reply to your letter of January 18, 1994.  That
letter concerned the country of origin of t-shirts, produced in
China and Guatemala.  Please reference your client China Overseas
Threads, Inc.

FACTS:

     The merchandise at issue consists of Chinese fabric event-
ually used to construct T-Shirts.  The following two scenarios
apply:

                           Scenario I

Operation in China                         Operation in Guatemala

1.   100% knitted jersey solid               1.Overlock shoulder.
dyed piece goods manufactured.              2.Overlock neck band.
2.   Piece goods are cut to body      3.Tape shoulder plus label.
parts, including front and back 4.Cover stitch neck band ribbing.
body, left and right sleeves,    5.Overlock the shoulder sleeves.
neck ribbing.                          6.Close the body overlock.
3.   The front body part is  7.Cover stitch the sleeve arm holes.
screen printed.              8.Finishing cover stitch the bottom.
4.   The cut parts are shipped                  9.Clean and pack.
to Guatemala.                      10.Put in box and ship to U.S.

                           Scenario II

Operation in China                         Operation in Guatemala

1.   100% knitted jersey solid               1.Overlock shoulder.
dyed piece goods manufactured.              2.Overlock neck band.
2.   Piece goods are cut to body      3.Tape shoulder plus label.
parts, including front and back 4.Cover stitch neck band ribbing.
body, left and right sleeves,    5.Overlock the shoulder sleeves.
neck ribbing.                          6.Close the body overlock.
                             7.Cover stitch the sleeve arm holes.
                             8.Finishing cover stitch the bottom.
3.   The cut parts are shipped                  9.Clean and pack.
to Guatemala.                      10.Put in box and ship to U.S.

ISSUE:

     Whether the assembly in Guatemala of the cut patterned
pieces results in a substantial transformation for purposes of
 12.130, Customs Regulations?

LAW AND ANALYSIS:

     Textile commodities produced in more than one foreign
country are subject to the country of origin requirements de-
lineated in section 12.130 of the Customs Regulations (19 C.F.R.
 12.130).  These regulations provide that:

          . . . a textile product . . . which consists
          of materials produced or derived from, or
          processed in, more than one foreign . . .
          country shall be a product of that foreign .
          . . country where it last underwent a sub-
          stantial transformation.

 12.130(b).  A textile product undergoes a substantial transfor-
mation when it is ". . . transformed by means of substantial
manufacturing or processing  operations into a new and different
article of commerce."

     Section 12.130 of the regulations outlines the criteria used
to determine the country of origin for textiles and textile
products.  Specifically, this provision of the regulations is
considered in determining whether a textile product has undergone
substantial manufacturing or processing operations, and what
constitutes a new and different article of commerce.  The factors
considered are not exhaustive.  In fact,  "one or any combination
of criteria may be determinative, and additional factors may be
considered."  In determining whether merchandise has undergone
substantial manufacturing or processing operations, we consider
the (1) physical change in the material or the article; (2) time
involved; (3) complexity of the operations; (4) level or degree
of skill and/or technology required; and (5) value added to the
article in each country.

     It is well accepted that the cutting of fabric into nec-
essary patterned pieces and assembly of those pieces into the
completed article results in a substantial transformation of the
fabric.  See HRL 734394 of February 10, 1992; HRL 556070 of July
1, 1991.  A substantial transformation does not occur, however,
when those patterned pieces are shipped to a third country and
merely assembled.  See HRL 555489 of May 14, 1990; HRL 086229 of
April 11, 1990; HRL 731036 of July 18, 1989.

     Examining the merchandise at issue, it is our opinion that
the assembly operations performed in Guatemala do not substan-
tially transform the t-shirts into products of Guatemala. Those
operations constitute a simple sewing of the cut patterned pieces
into a t-shirt.  This assembly is distinguished from the complex
sewing operations required when manufacturing a suit, suit-type
jacket, or tailored shirt.  See  12.130(e)(v), Customs Regu-
lations.  The t-shirts would therefore be considered products of
the country where the fabric was created and the patterned pieces
cut to shape.

HOLDING:

     As a result of the foregoing, the t-shirts are considered a
product of China, where the fabric was created and the patterned
pieces cut to shape.

     The holding in this ruling applies only to the specific
factual situation and merchandise identified in the ruling re-
quest. This position is clearly set forth in  177.9(b)(1), Cus-
toms Regulations (19 C.F.R.  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 infor-
mation furnished is not complete and does not comply with 19
C.F.R.  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 count-
ry of origin. In such a case, it is recommended that a new ruling
request be submitted in accordance with  177.2, Customs Regu-
lations (19 C.F.R.  177.2).

     A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported.  If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.

                           Sincerely,



                      John Durant, Director
                   Commercial Rulings Division