HQ 953241: Men's woven co tton shirts; heading 6205; country of origin; fabric hand loomed in India; fabric cut, trimmed and assembled in Singapore; fabric hand loomed and cut in India; assembly of the shirt panels by sewing in Singapore; 19 CFR 12.130; substantial transformation; HRL 951437, 082747 and 951426

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  953241

                              April 9, 1993
                         
CLA-2 CO:R:C:T  953241 NLP

CATEGORY: Classification

TARIFF NO.: 6205.20.2050

Ms. Linda Louie
United Customhouse Brokers, Inc.
5777 W. Century Blvd.
Suite 510
Los Angeles, CA 90045

RE:  Men's woven co tton shirts; heading 6205; country of origin;      fabric hand loomed in India; fabric cut, trimmed and   assembled in Singapore; fabric hand loomed and cut in India;     assembly of the shirt panels by sewing in Singapore; 19 CFR 12.130; substantial transformation; HRL 951437, 082747 and 951426

Dear Ms. Louie:

     This is in response to your letter dated October 5, 1992, to
our New York office, on behalf of your client, Foria
International, Inc., in which you requested a tariff
classification for men's woven shirts under the Harmonized Tariff
Schedule of the United States (HTSUS).  In addition, you
requested a country of origin determination for the woven shirts. 
A sample of the shirt was submitted for our examination.

FACTS:

     The garment at issue is a men's shirt made of woven cotton. 
It has a full front opening with button closures, short sleeves
and a breast pocket with a button closure.  It is yarn dyed.

     The importer has presented two plans for the manufacture of
the shirts.  According to the first plan, the fabric for the
shirts will be hand loomed in India with no lines of demarcation. 
The fabric will be sent to Singapore where it will be cut,
trimmed and assembled into men's shirts.

     According to the second plan, the fabric will be hand loomed
in India, where the shirt pattern will be constructed and the
fabric will be cut into shirt panels.  The shirt panels will then
be shipped to Singapore for assembly by sewing.  The assembly
process will be as follows:



     1. The front and back panels will be joined.
     2. The sleeves will be attached.
     3. The sideseams will be joined.
     4. The collar and the cuffs will be attached.
     5. The shirt tails will be hemmed.
     6. The thread ends will be trimmed.  

The shirt will then be washed, inspected, pressed and packaged. 
The value added to the Indian fabric in Singapore is 5%.

 ISSUE:

     What is the tariff classification of the men's shirt made of
woven cotton?

     What is the country of origin of fabric hand loomed in India
and cut and assembled into a shirt in Singapore?

     What is the country of origin of fabric hand loomed and cut
into shirt panels in India and assembled by sewing in Singapore?

LAW AND ANALYSIS:

ISSUE #1

     The classification of goods under the HTSUS is governed by
the General Rules of Interpretation (GRI's), taken in order.  GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.  In the event that the goods cannot be classified solely
on the basis of GRI 1, and if the headings and legal notes do not
otherwise require, the remaining GRI's may be applied, taken in
order.  

     Heading 6205, HTSUS, provides for "[m]en's or boys' shirts." 
As this is a men's shirt of woven cotton, it is classifiable in
subheading 6205.20.2050, HTSUS, which provides for "[m]en's or
boy's shirts: [o]f cotton: [o]ther: [o]ther: [o]ther: [w]ith two
or more colors in the warp and/or the filling: [o]ther: [m]en's." 



ISSUES #2 AND #3

     Country of origin determinations for textile products are
subject to Section 12.130 of the Customs Regulations (19 CFR
12.130).  Section 12.130(b) 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 or 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) of the Customs Regulations sets forth
criteria for 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) of the 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) of the Customs Regulations 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 onto the U.S.

     Section 12.130(e) of the Customs Regulations sets forth
criteria which aid us in determining whether an article has been
subjected to certain manufacturing or processing operations which
serve to substantially transform an article into a new and
different article of commerce.  Specifically, Section
12.130(e)(iv) and (v) are relevant in the instant case.  This
Section provides that:


          


          An article or material usually will be a product of a  particular foreign territory or         country, or insular
possession of the U.S., when it has undergone prior to                importation into the U.S. in that foreign territory or      country, or insular possession          any of the
following:

          *         *         *         *         *

     (iv)  Cutting of fabric into parts and the assembly of those
parts into the completed      articles; or

     (v)   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 and tailoring   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.  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.  For example, in Headquarters Ruling Letter
(HRL) 951437, dated July 17, 1992, Customs held that the assembly
process of women's pants in Malaysia, which involved the sewing
together of components that were cut from fabric in Singapore,
did not involve sufficient skill or complexity to constitute a
substantial transformation as defined by Section 12.130(e)(v). 
Therefore, the country of origin for the pants was found to be
Singapore as that was where the piece goods were cut into
specific parts and where the articles last underwent a
substantial transformation.  See also, HRL 082747, dated February
23, 1989, in which Customs determined that the assembly of jeans
was not a substantial transformation.

     In the instant case, according to the first manufacturing
plan, the hand loomed fabric will be sent to Singapore where it
will be cut and trimmed and assembled into the shirts.   Based on
Section 12.130(e)(iv), a substantial transformation has occurred
and the country of origin for the shirts is considered to be
Singapore.

     In the second plan, the assembly process in Singapore
involves the sewing together of several cut pieces to form the
shirts.  The sewing does not involve sufficient skill or the
complex sewing operations required when manufacturing a suit,
suit jacket or tailored shirt.  In addition, the value added to
the fabric is relatively small.  Therefore, a substantial
transformation of the fabric has not occurred in Singapore.  The
country of origin of these articles is India as that is where the
fabric was cut into specific parts and where the articles last
underwent a substantial transformation.  See, HRL 951426, dated
April 8, 1992, which dealt with the country of origin of a shirt. 
The fabric for the shirt was woven and printed in Taiwan, cut
into garment components in Singapore and was assembled by sewing
in Malaysia.  The finished garment was returned to Singapore for
packing and export to the U.S.  HRL 951426 held that the country
of origin for the shirt was Singapore as that was where the
fabric was cut into its component parts and the assembly
operation in Malaysia did not involve the complex sewing
operation required by the Section 12.130(e)(v).

HOLDING:

     The men's woven cotton shirts are classified in subheading
6205.20.2050, HTSUS, which provides for "[m]en's or boys' shirts:
[o]f cotton: [o]ther: [o]ther: [o]ther: [w]ith two or more colors
in the warp and/or the filling: [o]ther: [m]en's."  The rate of
duty is 21% ad valorem and the applicable textile category quota
is 340.

     The country of origin for the men's shirts manufactured
according to the first plan is Singapore.

     The country of origin for the men's shirts manufactured
according to the second plan is India.
      
     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 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).

     The designated textile and apparel categories may be
subdivided into parts.  If so, the visa and quota requirements
applicable to the subject merchandise may be affected.  Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available we
suggest the importer check, close to the time of shipment, the
Status Report on current Import Quotas (Restraint Levels), an
internal issuance of the U.S. Customs Service which is updated
weekly and is available for inspection at your local Customs
office.

     Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to importation of this merchandise to
determine the current status of any import restraints or
requirements.  

                                   Sincerely,



                                   John Durant, Director
                                   Commercial Rulings Division