HQ 956495: Country of origin of certain men's shirts; 19 CFR 12.130

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 956495

                        September 7, 1994

CLA-2 CO:R:C:T 956495 CMR

CATEGORY: Classification

Robert Stack, Esq.
Siegel, Mandell & Davidson, P.C.
One Astor Plaza 
1515 Broadway
43rd Floor
New York, New York  10036-8901

RE: Country of origin of certain men's shirts; 19 CFR 12.130

Dear Mr. Stack:

     This ruling is in response to your submission of May 25,
1994, on behalf of your client, Intimo Ltd., requesting a country
of origin determination for certain men's shirts processed in
Hong Kong and China.  Samples of the subject shirts, styles
300000 and 330000, were received with your request along with
samples of the cut parts for style 300000.  Customs will return
the samples as requested under separate cover.

FACTS:

     The garments at issue are identified as styles 300000 and
330000.  Style 300000 is a Henley collar woven silk shirt.  The
garment is constructed with one front panel, one back panel,
short sleeves (each of one piece of fabric), a chest patch pocket
with a contrast print edging piece, a round neckline with a
contrast print collar band composed of three sections, and a
three button partial front placket opening constructed with two
strips of contrast print fabric, and a straight hemmed bottom
with side vents.  The shirt consists of eleven cut pieces.

     Style 33000 is a pointed collar woven casual shirt.  The
garment is constructed with one back panel, two front panels, a
two-ply shoulder yoke, short sleeves (each of one piece of
fabric), a two-ply collar band, a two-ply pointed collar, and a
chest patch pocket.  The garment features a full front opening
(no placket) secured by seven buttons and a slightly rounded
hemmed bottom.  The shirt consists of twelve cut pieces.

     Both garments are made of sueded silk.  Styles 300000 and
330000 will be produced in both solid and print silk fabric.  The
style numbers will vary with the print, but the first two numbers                               -2-


will remain the same for identification purposes.  The 100
percent silk woven fabric (either of charmeuse woven silk or
sueded woven silk) will be obtained form sources in either Hong
Kong, Korea or China.  It is expected that the majority of the
silk fabrics used in the manufacturing will be woven and printed
in China.  The buttons, fusible interlining and other accessories
may be sourced from various other countries.

     The manufacturing of the shirts will occur in Hong Kong and
China.  In Hong Kong, the unmarked fabric will be cut into
garment pieces.  The cut pieces will be shipped to China for
assembly by machine sewing into the completed shirts.  The button
holing and attachment of textile labels and buttons will also be
performed in China.  In the case of style 330000, the assembly
includes the attachment of interlining fused by ironing.

     The cutting operation in Hong Kong involves spreading
several layers of fabric flat, placing a pattern on the top ply
and cutting out the pattern through all the plies of fabric with
an electric knife.  The assembly in China consists of sewing the
cut pieces together using a combination of single needle and
double needle sewing machines and overlock machines.  After
assembly, the assemblers trim off excess material and inspect the
garments.  The garments are then washed, pressed and folded, any
applicable hang tags are attached, and the garments are packed
for shipment to the United States.

ISSUE:

     What is the country of origin for the subject woven shirts
which are assembled in China of garment pieces cut in Hong Kong?

LAW AND ANALYSIS:

     Country of origin determinations for textiles and textile
articles are governed by the terms of section 12.130 of the
Customs Regulations (19 CFR 12.130).  Section 12.130(b) provides
that a textile or textile product which is processed in more than
one country will be considered a product of that country where it
last underwent a substantial transformation.  A substantial
transformation is defined therein as a transformation by means of
substantial manufacturing or processing operations into a new and
different article of commerce.

     Section 12.130(d)(1) provides 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.                               -3-


     Section 12.130(d)(2) sets out factors which will be
considered in determining if merchandise has been subjected to
substantial manufacturing or processing operations.  These
factors are:

     (i)   The physical change in the material or article as a
           result of the manufacturing or processing operations
     (ii)  The time involved in the manufacturing or processing
     (iii) The complexity of the manufacturing or processing
     (iv)  The level or degree of skill and/or technology
           required in the manufacturing or processing
     (v)   The value added to the article or material in each
           foreign territory or country compared to its value
           which imported into the U.S.

     Section 12.130(e)(1)and (e)(2) set out processes which will
normally be considered to be substantial and those which will not
be considered substantial.  Section 12.130(e)(1) states, in
pertinent part, that an article will usually be a product of a
particular country which it has undergone in that particular
country:

                       *        *         *

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

     (v)  Substantial assembly by sewing and/or tailoring of all
          cut pieces of apparel article 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).

     Customs has consistently held that the cutting of fabric
into garment pieces is a substantial transformation of the fabric
and the garment pieces become a product of the country in which
they are cut.  See, HRL 731028 of July 18, 1988, HRL 951426 and
rulings cited therein.  We have also consistently held that when
garment parts are cut in one country and the garment is assembled
in another country, unless the assembly operation is a
substantial assembly such as that referred to in 12.130(e)(1)(v),
the country of origin remains the country in which the garment
parts are cut as that it where the last substantial
transformation occurred.  See, HRL 088235 of March 15, 1991, and
rulings cited therein.

     In regard to the subject garments, the cutting of the fabric
into garment pieces in Hong Kong is a substantial transformation
of the fabric and thus the origin of the garment pieces is Hong
Kong.  The assembly of the garment pieces into finished men's                                -4-


shirts does not constitute a substantial transformation as it
only requires simple sewing and so does not meet the substantial
assembly requirement of section 12.130(e)(1)(v).  Specifically on
point in regard to the Henley collar shirt, style 300000, is
Customs ruling in HRL 955125 of January 27, 1994 (and see,
rulings cited therein) in which Customs ruled the origin of
several short sleeved knit and/or woven  pullover shirts was the
country in which the garment pieces were cut, not the country in
which they were assembled.

     The assembly of the pointed collar woven shirt, style
330000, is distinguishable from the assembly of tailored woven
shirts with full-front openings with plackets, collars, long
sleeves with sleeve cuffs and shoulder yokes.  See, HRL 953640 of
August 19, 1993.  The shirt at issue lacks features normally
associated with tailored garments which require greater care and
skill in assembly.

HOLDING:

     The country of origin of the subject shirts is the country
in which the last substantial transformation occurs, i.e., where
the garment pieces are cut, Hong Kong.

     This ruling is issued pursuant to the provisions of Part 177
Customs Regulations (19 CFR Part 177).  The holding in this
ruling only applies to the specific factual situation presented
and the merchandise identified in the ruling request.  If the
information furnished is not accurate or complete, or there is a
change in the factual situation, this ruling will no longer be
valid.  In such an event, a new ruling request should be
submitted.  

                                   Sincerely,



                                   John Durant, Director
                                   Commercial Rulings Division