HQ 957847: Country of Origin and classification determination forinfant's coverall; 19 CFR 12.130(b),(d),(e); cuttingconstitutes 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 957847                        
May 25, 1995                     

CLA  CO:R:C:T  957847  jb

CATEGORY:  CLASSIFICATION        

Justin Cho
Benjamin B. Park dba B & H Customs Services Co.
150-40 183rd Street, Suite 224
Jamaica, N.Y. 11413

RE:  Country of Origin and classification determination for
infant's coverall; 19 CFR          12.130(b),(d),(e); cutting
constitutes substantial transformation 

Dear Mr. Cho:

     This letter is in response to your inquiry, on behalf of
your client, Babyra USA Inc., requesting a country of origin and
classification determination for an infant's coverall.  A sample
was submitted to this office for examination.

FACTS:

     The submitted sample consists of an infant's finely knit
cotton coverall featuring long sleeves, a front snap opening
which extends from the neck and down both pant legs, elasticized
fabric at the leg openings, and a hood with fabric tie closures. 
The snap closures below the waist can be manipulated so that the
lower garment body converts into a sack with an elasticized
bottom.  The article is a size 0-6 months.

     The manufacturing process is as follows:

     KOREA                         CHINA

     material is produced                                      
assembly by sewing
     material is cut to shape                                  
packing
     
ISSUE:

     What is the country of origin and proper classification of
the merchandise at issue?


LAW AND ANALYSIS:

Country of Origin

     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).
     
     It is our opinion that the sewing operation performed in
China is a simple assembly operation.  The sewing does not
involve the complexity contemplated by Section 12.130(e)(1)(v),
as for example, that found in the assembly and tailoring of all
cut pieces of  suit-type jackets, suits and shirts.  
Accordingly, country of origin is conferred in Korea, at the time
of cutting.  

Classification

     Classification of merchandise under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) is in accordance
with the General Rules of Interpretation (GRI).  GRI 1 requires
that classification be determined according to the terms of the
headings and any relative section or chapter notes.  Where goods
cannot be classified solely on the basis of GRI 1, the remaining
GRI will be applied, in the order of their appearance.

     Chapter 61, HTSUSA, provides for articles of apparel and
clothing, knitted or crocheted.  Heading 6111, HTSUSA, provides
for babies' garments and clothing accessories, knitted or
crocheted.  The submitted infant's coverall is classifiable in
subheading 6111.20.6040, HTSUSA, which provides for, inter alia,
other babies' garments of cotton.  





HOLDING:

     The country of origin of the submitted infant's coverall is
Korea.   It is at the cutting process, in Korea, that the textile
product last undergoes a substantial transformation and is
transformed into a new and different article of commerce.

     The infant's coverall is classified in subheading
6111.20.6040, HTSUSA, which provides for babies' garments and
clothing accessories: of cotton: other; other.  The applicable
rate of duty is 8.6 percent ad valorem and the quota category is
239.

     The designated textile and apparel category may be
subdivided into parts.  If so, visa and quota requirements
applicable to the subject merchandise may be affected.  Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, we suggest that your client check, close to the time of
shipment, The Status Report on Current Import Quotas (Restraint
Levels), an issuance of the U.S. Customs Service which is updated
weekly and is available at the local Customs office.

     Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) categories,
your client should contact the local Customs office prior to
importing the merchandise to determine the current status of any
import restraints or requirements.

     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