HQ 956758: Country of origin of women's overalls; 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 956758

                        November 1, 1994

CLA-2  CO:R:C:T 956758 CAB

CATEGORY:  Classification

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

RE:  Country of origin of women's overalls; Section 12.130, Customs
Regulations

Dear Mr. Stack:

     This is in response to your inquiry of July 14, 1994,
requesting a country of origin determination on behalf of Lazeon
Corporation.  It is anticipated that the subject merchandise will
be entered at J.F.K. Airport or the New York Seaport.  A sample was
submitted for examination.

FACTS:

     The subject merchandise is a pair of women's bleached long
pants overalls, designated as Overall Style 1.  The garment is
constructed of 100 percent cotton material and may be produced for
the men's market.  The overalls contain two inset pockets in front
and two patch pockets in the back, a buttoned fly front with inside
plackets with a three button means of closure, a front bib in two
sections, a large bib pocket, and shoulder straps, 

     There are two distinct manufacturing scenarios for which
rulings are sought.  

     Scenario A is as follows:  Fabric from either Hong Kong or
Israel will be cut into garment pieces in Israel; The component
pieces will then be transported to a third country (maybe Turkey
or Egypt) where they will be assembled into the finished product;
The assembly process involves sewing the cut component pieces by
machine, attaching the buttons, zipper, metal strap components and
label.  After the finished garment is inspected, it will be washed,
bleached and/or dyed, pressed and folded in the country of
assembly.  In addition, the finishing may involved overdyeing in
lieu of, or in addition to, the above bleaching.  Hang tags will
be attached to the overalls and they will be packed for shipment
to the United States.   

     Scenario B is as follows:  Unmarked fabric of Hong Kong or
possibly Israeli origin will be cut in China into garment pieces. 
The fabric will then be exported to Israel where the assembly and
finishing operation is the same as in Scenario A.

ISSUE:

     What is the country of origin 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
operation;

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

     (iv)      The level or degree of skill and/or technology; 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 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 will 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.

     Section 12.130(e)(2), Customs Regulations, describes the
manufacturing or processing operations from which an article will
usually not be considered to be a product of a particular country
by virtue of merely having undergone the particular operations. 
Section 12.130(e)(2)(iv), Customs Regulations, provides examples
of some of these simple operations that will not effect the country
of origin of an article.  These enumerated examples are as follows: 
one or more finishing operations on yarn, fabrics, or other textile
articles, such as showerproofing, superwashing, bleaching,
decating, fulling, shrinking, mercerizing, or similar operations. 
Section 12.130(e)(2)(i) includes packaging operations as a simple
operation that will not effect the origin of a product.

     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 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.   

     In both scenarios, the sewing and assembly operation performed
in Israel or some other unnamed third country involve the simple
assembly of garment pieces.  The sewing does not amount to the
complex sewing operation required by Section 12.130(e)(1)(v). 
Also, the washing, bleaching, and/or dyeing and pressing in the
country of assembly are simple finishing operations that amount to
the simple manufacturing operations cited in Section
12.130(e)(2)(i)&(iv).  This processing does not confer country of
origin because it does not amount to a substantial manufacturing
operation.  The cutting process in either Israel or China, 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
subject garment is a product of the country where the fabric was
cut into garment pieces, either Israel or China.

HOLDING:

     The subject overalls are product of the country where the
fabric is cut into garment pieces, either Israel or China.

     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