HQ 957250: Country of origin of boxer shorts; Section 12.130, CustomsRegulations

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 957250

                          March 2, 1995

CLA-2  CO:R:C:T 957250 CAB

CATEGORY:  Classification

Ronald G. Sleeis
440 SO. Hindry Avenue, #H
Inglewood, CA 90301

RE:  Country of origin of boxer shorts; Section 12.130, Customs
Regulations

Dear Mr. Sleeis:

     This is in reference to your inquiry of October 27, 1994,
requesting a country of origin determination for boxer shorts. 
There were no samples submitted for examination.

FACTS:

     Fabric is woven in Taiwan.  The fabric is then cut into
garment pieces in Taiwan and exported to Vietnam for assembly
into finished boxer shorts.  

ISSUE:

     What is the country of origin for marking purposes of the
subject merchandise?

LAW AND ANALYSIS:

     Country of origin determinations for textile products are
subject to Section 12.130, Customs Regulations (19 CFR 12.130). 
Section 12.130 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), Customs Regulations, sets forth criteria
for determining whether a substantial transformation of a textile
product has taken place.  This regulation states 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), Customs Regulations, 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), Customs Regulations, states that for
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        operations;

(iii)     The complexity of the manufacturing or processing           operations;

(iv)      The level or degree of skill and/or technology required
          in the manufacturing or processing operations; and     

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

     Section 12.130(e)(1), 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).

     According to T.D., 85-38, the final document rule
establishing 19 CFR 12.130:

     The assembly of all 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 a
     complete assembly 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.

     Customs has consistently determined that cutting fabric into
garment pieces constitutes a substantial transformation of the
fabric and the clothing pieces become products of the country
where the fabric is cut.  (See, e.g., Headquarters Ruling Letter
(HRL) 952531, dated November 25, 1992 and HRL dated 089539 April
22, 1992.) 

     Customs has also long 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 HRL 082787, dated March 9, 1989).

     In this instance, the assembly operation in Vietnam involves
the simple assembly of garment pieces.  The sewing does not
amount to the complex sewing operation required by Section
12.130(e)(1)(v).  The cutting process in Taiwan, however, does
result in a substantial transformation.  The cutting materially
changes the fabric into designated garment pieces, which
constitutes new and different articles of commerce.  Therefore,
the garment in question is a product of Taiwan.

     For country of origin marking purposes, the merchandise
should be marked where the last substantial transformation
occurred, Taiwan.  If you require information as to the specific
wording to be used on the label of the merchandise, it would be
necessary for you to submit a separate request with the proposed
marking in addition to a sample to the Special Classification and
Marking Branch of the U.S. Customs Service.  

HOLDING:

     Based on the foregoing, the country of origin of the subject
merchandise is Taiwan.

     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