HQ 954424: Country of origin of women's woven jackets.

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 954424

                         August 11, 1993

CLA-2 CO:R:C:T  954424 HP

CATEGORY:  Classification

Mr. Mark Haney
Director - QMS
IBERC
2121 K Street, N.W.
Washington, D.C. 20037

RE:  Country of origin of women's woven jackets.

Dear Mr. Haney:

     This is in reply to your letter of June 17, 1993.  That
letter concerned the country of origin of jackets, produced in
Honk Kong, Sri Lanka or China.

FACTS:

     The merchandise at issue consists of two styles of woman's
woven jackets, #UF8140 and #UF7744.  Style #UF8140 is of 100%
cotton denim, while style #UF7744 is 55% ramie and 45% cotton. 
Production will be contracted by Mastex Impex Ltd., a Hong Kong
firm.  Their address is Room 1604-5, Harcourt House, 39
Gloucester Road, Wanchai, Hong Kong.

     The garments will be cut and completely assembled in Sri
Lanka from Hong Kong fabric.  Front panel embroidery is then
performed in China, and the jackets are packed and shipped from
Hong Kong.  The value added from the fabric creation,
cutting/assembly, and embroidery are all within six percent of
each other.

ISSUE:

     What is the country of origin of the completed jackets?

LAW AND ANALYSIS:

     Textile commodities produced in more than one foreign
country are subject to the country of origin requirements
delineated 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
          substantial transformation.

 12.130(b).  A textile product undergoes a substantial
transformation 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.

     Section 12.130(e)(iv) of the regulations states that
"[c]utting of fabric into parts and assembly of those parts into
the completed article" constitutes a substantial transformation. 
Therefore, the jackets could be considered products of Sri Lanka. 
We must now decide whether the embroidery work performed in China
to the completed jackets constitutes a second substantial
transformation.  If so, the garments will be products of China
for quota/visa purposes.

     As we stated above, the value added due to the Chinese
materials and labor is significant when compared to the Hong Kong
and Sri Lanka.  Nonetheless, the embroidery work performed to the
jackets does not change the identity or fundamental character of
the jackets.  After the embroidering is completed the jackets
still remain jackets, although they are now embroidered jackets. 
Customs has previously held that embroidery work performed on
garments which does not change the identity or fundamental
character of those garments is not a substantial transformation. 
See HRL 089068 of July 1, 1991 (polar bear embroidered onto a
sweater).  Accordingly, the Chinese processing does not affect
the country of origin, which remains Sri Lanka.

HOLDING:

     As a result of the foregoing, the instant merchandise is
considered a product of Sri Lanka.

     The holding in this ruling applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in  177.9(b)(1),
Customs 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 information 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 country of origin. In such a case, it is recommended that a
new ruling request be submitted in accordance with  177.2,
Customs Regulations (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