HQ 954139: Country of origin of various upper body garments

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 954139

                         August 24, 1993

CLA-2  CO:R:C:T 954139 CAB

CATEGORY:  Classification

David C. Williams, Esq.
Neville, Peterson & Williams
39 Broadway
New York, NY 10006

RE:  Country of origin of various upper body garments

Dear Mr. Williams:

     This ruling is in response to your inquiry of April 1, 1993,
on behalf of your client, Zion Textiles, requesting a country of
origin ruling of five types of upper body garments.  No samples
were received by Customs Headquarters.

FACTS:

     The merchandise in question consist of a short-sleeve pocket
tee shirt, a long-sleeve tee shirt, a long-sleeve turtleneck, a
long-sleeve printed sweatshirt, and a long-sleeve plain
sweatshirt.  You propose two different scenarios and request a
response on both scenarios.  

     In the first scenario, the manufacturing steps completed in
Israel are as follows:

     1.  Cotton or blended cotton/manmade fiber fabric will be    
         knitted, dyed, and finished.

     2.  The fabric will be cut into garment pieces and packaged
         with other articles of Israeli origin including buttons
         and thread.

     In the second scenario, the manufacturing steps are as
follows:

     1.  Fabric will be imported from a third country such as the
         United States or the Peoples Republic of China.

     2.  The fabric will then be inspected, marked and cut in    
         Israel, and packaged with other Israeli components. 

     In both scenarios, the unassembled components will be sent
abroad for assembly into finished garments.  The exact country of
assembly has not yet been determined, though it is anticipated
that the assembly will occur in Bulgaria.  

     The final processing of the garments will be completed in
either two methods.  The long-sleeve printed sweatshirt will
undergo an additional processing step which includes screen
printing in the country of assembly.  One assembly method
involves returning the assembled garments to Israel for final
processing, such as labeling, inspection, and packaging.  In the
other assembly method, the assembled garments will undergo the
aforementioned processing in Bulgaria or another country.  

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, describes
manufacturing or processing operations from which an article will
usually be considered a product of the country in which those
operations occurred.  Section 12.130(e)(1)(v) provides the
following:

     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).

     According to T.D. 85-38, the final document rule
establishing 19 CFR 12.130:

     The assembly of all the cut pieces of a garment usually is a
     substantial manufacturing process that results in an article
     with a different name, character, or use than the cut
     pieces.  It should be noted that not all assembly operations
     of cut garment pieces will amount to a substantial
     transformation of those pieces.  Where either less than a
     complete assembly of all the cut pieces of a garment is
     performed in one country, or the assembly is a relatively
     simple one, then Customs will rule on the particular factual
     situation as they arise, utilizing the criteria in Section
     12.130(d).

     Customs has consistently determined that cutting fabric into
garment pieces constitutes a substantial transformation of the
fabric and the clothing pieces become products of the country
where the fabric is cut.  (See e.g. Headquarters Ruling Letter
(HRL) 952531, dated November 25, 1992; HRL 089539, dated April
22, 1992; and HRL 089834, dated September 26, 1991).

     Customs has also 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 e.g. HRL 082787, dated March 9, 1989; and HRL
082747, dated February 23, 1989).

     After considering both proposed scenarios, Customs believes
that the assembly operations required to complete the garments do
not amount to a substantial manufacturing operation required by 
Section 12.130(e)(1)(v).  The assembly operations involve simple
sewing which does not require highly skilled workers or a
substantial amount of time.  

     Also in regard to the final processing of the garments,
described in your submission as the finishing, inspection, and
packaging, as stated in HRL 088235, dated March 15, 1991, it is
of no consequence whether these operations occur in Israel or
Bulgaria, or some other locale.  Finishing, inspection, and
packaging, are not considered sufficient operations to
substantially transform an article, and thus, change the country
of origin.  Therefore, the country of origin of the garments at
issue is the country where the last substantial transformation
occurred, Israel.

HOLDING:

     The country of origin of the garments at issue is Israel.  

     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