HQ 956496: Country of origin of men's trousers and shorts; Section12.130, Customs Regulations

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 956496

                        September 26, 1994

CLA-2  CO:R:C:T 956496 CAB

CATEGORY:  Classification

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

RE:  Country of origin of men's trousers and shorts; Section
12.130, Customs Regulations

Dear Mr. Stack:

     This is in response to your inquiry of May 25, 1994,
requesting a country of origin determination on behalf of Intimo,
Ltd.  The merchandise at issue is men's shorts and trousers. 
Samples were submitted for examination.

FACTS:

     The merchandise in question includes Style No. 170000, which
is a man's 100 percent silk jam length short that contains an
elasticized waistband, a drawstring means of closure, a back patch
pocket, and a button fly front.  Style No. 510000, which is also at
issue is a man's pair of 100 percent silk pull-on trousers.  These
trousers contain an elasticized waistband, a drawstring means of
closure, a back patch pocket, and a button fly front.  Style No.
130013 is a man's 100 percent boxer style short with an elasticized
waistband, button fly front, and side slits.  All of the subject
merchandise will be produced in both charmeuse woven silk or sueded
woven silk fabrics, with various colors and/or prints.  

     The manufacturing process is as follows:  The silk fabric will
be sourced from either Hong Kong, Korea, or China.  The silk fabric
will then be transported to Hong Kong for the purpose of cutting
the garment component pieces.  The component pieces will then be
transported to China.  In China, the opening for the jam shorts'
back pocket, the elastic, and the fly placket buttonholes will be
cut and all of the garment pieces will be sewn together to produce
the finished products.  




ISSUE:

     What is the country of origin of the merchandise at issue?

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
operation;

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

     (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 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.

     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, HRL 089539, dated April 22, 1994).

     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; and HRL 089539, dated April 22,
1992).

     In this instance, the sewing and assembly operation that will
be performed in China  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 Hong
Kong, however, does result in a substantial transformation.  The
cutting materially changes the fabric into designated garment
pieces, which constitute new and different articles of commerce. 
Therefore, the garments in question are products of Hong Kong.

HOLDING:

     The country of origin of the subject trousers and shorts is
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