HQ 951423: Country of origin determination for two shirts

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 951423

                          July 28, 1992

CLA-2  CO:R:C:T  951423  JED

CATEGORY:  Country of origin

Ms. Judith A. Schechter
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, New York  10017

RE:  Country of origin determination for two shirts

Dear Ms. Schechter:

     This is in response to your letter of March 26, 1992,
requesting a country of origin determination for two styles of
shirts, identified as Style 4324 and Style 4321.

FACTS:

     Your client is contemplating a multi-country processing
operation to produce two styles of shirts, Style 4324 and Style
4321.  Both are knit sweatshirt-like tops of 85% polyester and
15% cotton fleece.  (We note that this description of the fabric
does not match the fabric disclosure on the neck labels of the
samples submitted.  This does not, however, prevent a country of
origin determination being made on the facts submitted.)  The
fabric will be knit and printed or dyed in Taiwan.  The fabric,
which will not have any lines of demarcation, will be sent to
Singapore where it will be cut into garment components.  The cut
components and trim (e.g., labels) will then be sent to Malaysia
or Indonesia for assembly by sewing and for packaging.  Finished
garments will be returned to Singapore for export to the U.S.

ISSUE:

     What is the country of origin of the above described shirts?

LAW AND ANALYSIS:

     For country of origin purposes,  12.130, Customs
Regulations (19 CFR 12.130), is applicable to the merchandise at
issue.  Section 12.130(b) provides that a textile product that is
processed in more than one foreign territory or country, or
insular possession of the U.S., shall be a product of that
foreign territory or country, or insular possession of the U.S.
where it last underwent a substantial transformation.  A textile
product will be considered to have undergone a substantial
                               -2-

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 (19 CFR 12.130(d)),
sets forth criteria for evaluating the two prongs of the
substantial transformation determination.  The regulation states
that the 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: (i) commercial
designation or identity; (ii) fundamental character; or (iii)
commercial use.

     Section 12.130(d)(2) states that in determining whether
merchandise has been subjected to substantial manufacturing or
processing operations, the following will be considered regarding
the manufacturing or processing operations in each foreign
country or territory, or insular possession of the U.S.: (i) the
resulting physical change in the material or article; (ii) the
time involved; (iii) the complexity of the operations; (iv) the
level or degree of skill and/or technology required; and (v) the
value added to the article or material.

     Customs has long held that the mere assembly of goods by
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.  For
example, in HRL 082747 (February 23, 1989) Customs determined
that the assembly of jeans was not a substantial transformation
and in HQ 950887 (March 2, 1992) held that the assembly of piece
goods into a brassiere was not a substantial transformation.

     The sewing operation performed in Malaysia or Indonesia
involves the simple assembly of several cut pattern pieces;
front and back panels, sleeve panels and trim.  The sewing does
not involve the complex sewing operation required when
manufacturing a suit, suit jacket or tailored shirt contemplated
by  12.130(e)(v).

     The cutting in Singapore materially changes the fabric into
designated garment pieces.  Since assembly of the garment by
sewing does not result in a substantial transformation, the
cutting process in Singapore constitutes the time and place at
which the last substantial transformation occurs.

HOLDING:

     The country of origin of the submitted shirts, Style 4324
and Style 4321, is Singapore.

                               -3-

     Section 177.9(b)(1), Customs Regulations (19 CFR
177.9(b)(1)), states that a ruling 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.  Accordingly, the holding set
forth above applies only to the merchandise identified in the
ruling request.  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.  If there is a change in the facts furnished, the
holding in this ruling may be affected.  In such an event, it is
recommended that a new ruling request be submitted in accordance
with  177.2, Customs Regulations (19 CFR 177.2).



                                   Sincerely,





                                   John Durant, Director
                                   Commercial Rulings Division