HQ 954808: Country of origin determination for girl's padded jacket; 19 CFR 12.130; substantial transformation occurs at time of assembly; assembly of shell is beyond a simple sewing operation

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 954808
                                
                        December 17, 1993


CLA-2  CO:R:C:T  954808 jb

CATEGORY:  Classification

Ms. Marty L. Corgan
M & L International Co., L.P.
1333 N. Kingsbury Street
Chicago, Il, 60622

RE:  Country of origin determination for girl's padded jacket; 
     19 CFR 12.130; substantial transformation occurs at time of
     assembly; assembly of shell is beyond a simple sewing
     operation

Dear Ms. Corgan:

     This letter is in response to your inquiry of 
August 9, 1993, requesting a country of origin determination for
a girl's padded jacket.  A sample of the unassembled jacket shell
and the lining with the padding and zipper attached were provided
to this office for examination.

FACTS:

     You state that the shirts may be manufactured in one of
three circumstances:

     SCENARIO I:

     Country A           Country B

     shell is cut        lining is cut
     shell is assembled  padding is cut
                         padding is sewn to lining
                         zipper is attached
                         shell and padding are assembled and
                         finished








     SCENARIO II:

     Country A           Country B

                         shell is cut
     shell is assembled
                         lining is cut
                         padding is cut
                         padding is sewn to lining
                         zipper is attached
                         shell and padding are assembled and
                         finished

     SCENARIO III:
     
     Country A           Country B           Country C

                                             shell is cut
     shell is assembled
                         lining is cut
                         padding is cut
                         padding is sewn to 
                         lining
                         zipper is attached
                         shell and padding are 
                         assembled and finished

     You state that in all three scenarios the padding for the
jacket is produced in Country B, the fabric for the shell and the
lining are produced in Country C,and the zipper is produced in
Country D (or possibly Country C).  Also included in your letter
was the operations breakdown involved in all three scenarios for
each country.

ISSUE:

     What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

     Section 12.130 of the Customs Regulations (19 CFR 12.130),
sets forth the principles of country of origin for textiles and
textile products subject to section 204 of the Agricultural Act
of 1956, as amended (7 U.S.C. 1854).  








     Section 12.130(b) of the Customs Regulations 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) of the Customs Regulations sets forth
criteria in 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) 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 insu1ar 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 into the U.S.



     Section 12.130(e)(1) of the 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).  Emphasis added.

     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 (See,  HQ 081320, dated April 14, 1989; 
HQ 086696, dated June 8, 1990; HQ 082924, dated March 26, 1990;
HQ 085611, dated January 17, 1990; HQ 951426, dated 
April 8, 1992).

     Section 12.130(e)(i)(v) makes note that there must be
substantial assembly by sewing or tailoring of a suit-type
garment for substantial transformation to occur.  To determine
whether origin is conferred when an article is transformed from
its numerous constituent parts to what is eventually recognized
as the completed garment, i.e., a jacket, one must first define
"substantial assembly."

     Substantial assembly can be defined as that operation,
whether by sewing or tailoring, when all the components of the
garment are attached together to form that completed jacket. 
Succinctly stated, substantial transformation occurs at the time
of assembly of the individual component parts into what can be
identified as a jacket.
     
     Sewing the individual components of the shell together
necessitates careful and skilled sewing in the assembly.  This is
because unlike a simple, plain jacket, or a jacket onto which
designs have been sewn, this jacket has a large number of small
pieces, each of which has to be sewn together to actually form
the completed shell.  Thus, the small parts consisting of the
design are not sewn onto the shell but actually constitute the
shell when assembled together.  At the cutting stage of these
small pieces, the identity of the jacket is not yet discernable
because we do not have large, simple panels.  For example, the 






collar consists of three separate and different colored pieces;
the "design" on the jacket, which covers the front upper portion
of the jacket and extends midway to the back, past the shoulders,
is actually a strip of different colored fabric which is an
integral part of the shell (without this piece there would be a
hole between the upper and lower portion of the jacket). Onto
this strip additional separate diamond pieces are sewn, plus two
individual strips of colored fabric, thus forming an "X" across
the diamonds; the pocket flaps consists of three separate and
different colored pieces; the pockets and plackets have a quilted
design, and there is also a separate piece of fabric which forms
a tunnel around the jacket, into which the string which tightens
the jacket at the waist may be funnelled.

     Accordingly, because of the extensive and intricate nature
of the assembly operation which must be performed before the
shell is completed, the sewing operations involved in the
assembly of the shell constitute a substantial transformation. In
addition, a determination that substantial transformation occurs
at the time of assembly of the individual component parts is in
adherence to the terms set by Section 12.130(e)(1) of the Customs
Regulations.  We refer you to several rulings which have held
that substantial transformation occurs at the time of complete
assembly, e.g., HQ 075323, dated April 1, 1985;  HQ 082787, dated
March 9, 1989, HQ 555608, dated January 27, 1990, and HQ 952750,
dated October 16, 1992.

     In Scenario I, all of the components for the shell are cut 
and assembled in Country A.  The completed shell is thereafter
sent to Country B for the addition of the lining and padding. In
Scenario II, the cutting of all the components for the shell is
performed in Country B.  The unassembled parts are then sent to
Country A where the shell is assembled.  The completed shell is
then sent to Country B where the lining and padding are added to
the shell. In Scenario III, all of the components for the shell
are cut in Country C.  The unassembled parts are then sent to
Country A where the shell is assembled, after which the completed
shell is sent to Country B where the lining and padding are added
to the shell. 

     In all three scenarios there is a substantial transformation
at the time of assembly of the component parts of the shell into
the completed shell. It is the opinion of this office that it is
at this time that the garment is readily identifiable as a jacket
and thus a substantial assembly of the completed garment takes
place. The addition of the lining and padding do not change the 
identity of the garment.






HOLDING:

     Based on the information provided, the country of origin for
the jacket is as follows:

     Scenario I-    country of origin of the jacket is Country A
     Scenario II-   country of origin of the jacket is Country A
     Scenario III-  country of origin of the jacket is Country A 

     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 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
                    Commercial Rulings Division