HQ 954450: Country of origin of a sports cap.

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 954450

                         August 18, 1993

CLA-2 CO:R:C:T 954450 HP

CATEGORY: Classification

Mr. Ming-Chun Wu
President
Minn Poe Industry Co., Ltd. 12, 205 Lane, Min Tsu St.
Hu Ne Village, Hu Nei Hsiang Kaohsiung Hsien
TAIWAN R.O.C.

RE: Country of origin of a sports cap.

Dear Mr. Wu:

    This is in reply to your letter of February 4, 1993. letter
concerned the country of origin of a sports cap.

FACTS:

That

    The merchandise at issue consists of a woven sports cap, style
number MP9304. The following table sets forth the manufacturing
processes:

Factors                         Country A (Taiwan)  Country B (China)

*Physical Change         1. Fabric woven
        in Article     2. Fabric cut into
                  12 pieces, including
                  panels, cap, brim,
                  etc.

                                   Pieces assembled into finished
                                              product.

,Time Expended (per unit)

          1.   1 min/yd for weaving fabric.
          2.   2 min/pc cutting
          3.   0.5 min printing
          4.   0.8 min pressing
          5.   3 min inspection,
              folding & ironing 
          6. 3 min packing
                                   15 minutes/piece for assembly.

Complexity

          1.   Weaving
          2.   Cutting into
              components 
          3. Printing 
          4. Pressing 
          5. Inspection
              & Folding 
          6. Packing
                                        Assembly by sewing

*Skill or
    technology

          1. 8-10 skilled workers 
          2. Weaving/dying machine 
          3. Computer marker
          packing machine & 
          plotter machine 
          4. Cutting machine 
          5. Printing'machine 
          6. Ironing machine 
          7. Packaging machine
                                        1.1-3 skilledworkers 
                                        2. Sewing machines

Value Added
                                        1.   30›/pc after weaving     1.
                                        2.   15›/pc after cutting
                                        3.   6›/pc after printing
                                        4.   8›/pc after pressing
            and packaging
               5. 18›/pc after accessory 
               6. 10C/pc after foamed
                   polyethylene for brim

                                        25›/pc after assembly

ISSUE:

    What is the country of origin of the cap for quota/visa
purposes?

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 o
    country where it last underwent a substantial ~raAsformation.

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."

                             Page 3
                                
    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.

    Customs has r&peatedly held that the cutting of fabric into
specific patterns and shapes suitable for use in an assembly
operation constitutes a substantial transformation. See HRL 555189
of June 12, 1989; HRL 554027 of January 13, 1987; HRL 554025 of
December 16, 1986. Therefore, we find that the materials which will
be u~ed to create the cap will become new and different articles of
commerce as a result of the operations performed in Taiwan (Country
A). The assembly operations performed in China, however, do not
constitute a substantial transformation of the pre-cut componenhs.
Customs has long held that the mere assembly of parts will not
necessarily constitute a substantial transformation. C.S.D. 80-111
(Sept. 24, 1980). See also HRL 087439 of October 30, 1990 (assembly
of portfolio components insufficient to confer country of origin.

    Taking the above rulings into consideration, it is apparent
that the instant operations to be performed in China constitute
simple assembly operations on pre-cut components which do not
amount to a substantial transformation.     Accordingly, the caps
will be considered products of Taiwan.

HOLDING:

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

    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