HQ 957257: Country of Origin determination for knit garments; fabricknit, dyed and cut in Singapore; simple assembly in Indonesia;19 CFR 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 957257
                                 
                          March 1, 1995

CLA  CO:R:C:T  957257  jb

CATEGORY:  CLASSIFICATION

William Lee
Gimmill Industrial (Private) Limited
03-04 Pei-Fu Building
24 New Industrial Road
Singapore 1953

RE:  Country of Origin determination for knit garments; fabric
knit, dyed and cut in Singapore;   simple assembly in Indonesia;
19 CFR 12.130(b),(d),(e); cutting constitutes substantial   transformation 

Dear Mr. Lee:

     This letter is in response to your inquiry of October 25,
1994, requesting a country of origin determination for certain
knit garments.  Samples of the finished garments were submitted
to this office for examination.

FACTS:

     You state that the knit garments can be composed of single
jersey, interlock, rib, fleece or other similar knit fabrics, and
will consist of the following:

     1. polo shirt composed of 65 percent polyester and 35
percent cotton, featuring a partial         frontal opening with
three button closure and short sleeves with ribbed knit cuffs; 

     2. turtle neck composed of 65 percent polyester and 35
percent cotton, featuring long         sleeves with ribbed knit
cuffs;

     3. tank top composed of 65 percent polyester and 35 percent
cotton, featuring shoulder        straps measuring approximately
3-1/2 inches in width;




     4. T-shirt composed of 40 percent polyester and 60 percent
cotton, featuring a crew          neckline and a left breast
pocket;

     5. pullover composed of 65 percent polyester and 35 percent
cotton, featuring short      sleeves and a partial frontal
opening with single button closure.

     In all cases the fabric is knit, dyed and cut into the
component parts in Singapore and sent to Indonesia or some other
country for assembly by sewing.  The assembled garments will then
undergo finishing, inspection and packaging either in the country
of assembly or in Singapore.

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).

     Pursuant to 19 CFR 12.130(b), the standard of substantial
transformation governs the country of origin determination where
textiles and textile products are processed in more than one
country.  The country of origin of textile products is deemed to
be that foreign territory or country where the article last
underwent a substantial transformation.  Substantial
transformation is said to occur when the article has been
transformed into a new and different article of commerce by means
of substantial manufacturing or processing.
     
     The factors to be applied in determining whether or not a
manufacturing operation is substantial are set forth in 19 CFR
12.130(d)(2).  The following are 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) describes manufacturing or processing
operations from which an article will usually be considered a
product of the country in which those operations occurred:  

     (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 of all cut            pieces of suit-type jackets, suits
and shirts).

     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 Headquarters Ruling Letter (HRL)
952531, dated November 25, 1992; HRL 953697, dated July 26, 1993;
and HRL 955125, dated January 27, 1994).

      As was stated by Customs in Treasury Decision (T.D.) 85-38
(19 Cust. Bull. 58, 70; 50 FR 8714), the final document rule
establishing 19 CFR 12.130, in pertinent part:

     [T]he 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          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).
     
     Customs has consistently held that the mere assembly of
goods by linking and looping, or simple sewing, is not enough to
substantially transform the components of an article into a new
and different article of commerce (See HRL 082747, dated February
23, 1989; HRL 086665, dated March 23, 1990; HRL 951169, dated
April 1, 1992; HRL 951437, dated July 17, 1992; and HRL 952647,
dated January 27, 1993).      
     
     

     In the case of the subject garments, the assembly operations
performed in Indonesia (or other country), are minor 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 technology is required, nor is tailoring involved.  

     Additional operations such as ironing, inspecting and
packaging are considered minor finishing operations and are not
sufficient to affect country of origin.  As is stated in section
12.130(e)(2)(i), an article usually will not be considered to be
a product of a particular country  by virtue of merely having
undergone:

     Simple combining operations, labeling, pressing, cleaning or
drycleaning, or packaging     operations, or any combination
thereof;

     The cutting operations in Singapore materially alter the
fabric into designated garment pieces.  This constitutes a
substantial transformation of the fabric and confers country of
origin.  

HOLDING:

     The country of origin of the submitted garments, i.e., the
polo shirt, turtle neck, tank top, T-shirt and pullover, is
Singapore.  It is at the cutting process in Singapore that the
fabric last undergoes a substantial transformation and is
transformed into new and different articles of commerce.  As this
constitutes a substantial transformation of that fabric,
Singapore is the country of origin for the subject garments.      
     
     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 be subsequently 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