HQ 956756: Country of origin determination for knitted upper body garments; piece goods imported from Taiwan; piece goods cut to shape in Singapore; simple assembly and packaging in third country; 19 C.F.R. §12.130(b)(d)(e); cutting constitutes substantial transformation.

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 956756



November 7, 1994 
CLA-2 CO:R:C:T 956756 SK

CATEGORY: Classification

Diane L. Weinberg Sandler, Travis & Rosenberg, P.A. 505 Park Avenue  New York, N.Y. 10022-1106

RE: Country of origin determination for knitted upper body garments; piece goods imported from Taiwan; piece goods cut to shape in Singapore; simple assembly and packaging in third country; 19 C.F.R. §12.130(b)(d)(e); cutting constitutes substantial transformation.

Dear Ms. Weinberg:

	This is in response to your letter of July 8, 1994, on behalf of your client, Sing Lun & Company (Pte.) Ltd., requesting a country of origin determination for several styles of knit upper body garments.  Samples of the finished garments were submitted to this office for examination.

FACTS:

	You have requested a country of origin determination for several styles of men's, women's and children's knit upper body garments.  The garment referenced Exhibit 1 is a short sleeve golf shirt with a partial front neck opening secured by four buttons and a breast pocket.  Exhibit 2 is a short sleeve polo shirt with a collar, ribbed knit cuffs and a partial neck opening secured by two buttons. Exhibit 3 is a short sleeve polo shirt with ribbed knit cuffs, a partial front opening secured by four buttons and a banded waistband.  Exhibit 4 is a long sleeve turtleneck with ribbed knit cuffs.  These garments will be made from either 100 percent cotton, a blend of 65 percent man-made fiber and 35 percent cotton, or a blend of 60 percent cotton and 40 percent man-made fiber.

	You submit that your client plans to import Taiwanese piece goods into Singapore where they will be cut into shaped components.  The components will then be sent to Sri Lanka, Indonesia or Malaysia for assembly into completed garments. After assembly,the garments will be pressed and packaged in the country of assembly.  

ISSUE:

	What is the country of origin of the subject garments?

LAW AND ANALYSIS:

	Country of origin determinations for textile products are subject to Section 12.130 of the Customs Regulations (19 C.F.R. §12.130).  Section 12.130(b) 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;
	(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; 

	(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 operations;

	(v)   The value added to the article or material;

	Section 12.130(e)(1) provides that an article or material usually will be a product of a particular foreign territory or country, or insular possession of the United States, when, prior to importation into the United States, it has undergone in that foreign territory or country or insular possession, any of the following:

	(i)  Dyeing of fabric and printing when accompanied by two
		or more of the following finishing operations:         bleaching, shrinking, fulling, napping, decating,           permanent stiffening, weighting, permanent embossing,       or moireing;   

	(ii)  Spinning fibers into yarn;
	     (iii) Weaving, knitting or otherwise forming fabric;
	     (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 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 (19 Cust. Bull. 58, 70; 50 FR 8714), the final document rule establishing 19 C.F.R. §12.130:

		"[T]he 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 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 situations as    they arise, utilizing the criteria in section 12.130(d)."

	This office has consistently 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 Headquarters Ruling Letters (HRL's) 082747, dated February 23, 1989; 086665, dated March 23, 1990; 951169, dated April 1, 1992; 951437, dated July 17, 1992; 952647, dated January 27, 1993.

	In the instant case, the assembly operations performed in either Sri Lanka, Indonesia or Malaysia are mere combining and sewing operations and do not possess the requisite degree of complexity to be deemed substantial manufacturing processes for purposes of conferring country of origin status.  No great degree of skill or advanced technology is required, nor is tailoring involved.  The cutting operations in Singapore, however, materially alter the fabric into designated garment pieces.  This constitutes a substantial transformation of that fabric and Singapore is the country of origin for the subject garments. 

HOLDING:

	The country of origin of the knit upper body garments is Singapore.  It is during the cutting process in Singapore that the fabric last undergoes a substantial transformation and is transformed into a new and different article of commerce (upper body garments) by means of substantial manufacturing operations (cutting the fabric into designated garment parts). 

	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 C.F.R. §177.9(b)(1).  This section states that a ruling letter is issued on the assumption that all 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.  Accordingly, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 C.F.R. §177.2).
Sincerely,
John Durant, Director,
Commercial Rulings Division