HQ 953409: Country of origin determinition for knit sweaters; Section12.130 of the Customs Regulations (19 CFR 12.130);country of origin status conferred where fabric is formed; cutting along pre-marked lines, sewing, assembly andpacking are not substantial manufacturing operations; HRL089767 (10/21/92).

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 953409

                           May 13, 1993

CLA-2 CO:R:C:T 953409 SK

CATEGORY: Classification

Lee Seah Weng
Lee Yin Knitting Factory Pte. Ltd.
994 Bendemeer Road #06-07
Singapore 1233

RE: Country of origin determinition for knit sweaters; Section
12.130 of the Customs         Regulations (19 CFR 12.130);
country of origin status conferred where fabric is        
formed; cutting along pre-marked lines, sewing, assembly and
packing are not         substantial manufacturing operations; HRL
089767 (10/21/92).

Dear Mr. Weng:

     This is in response to your letter of August 18, 1992,
requesting this office to issue you a country of origin
determination for knitted sweaters which will undergo one of
either two different manufacturing scenarios.  You also request
instruction as to how this merchandise should be marked for
purposes of indicating country of origin.  Our analysis follows.

FACTS:

     You have submitted two proposed plans for manufacturing knit
sweaters.  You state that you have two factories, in Singapore
and in Malayasia, in which you will be processing the merchandise
at issue.

     In Plan A, the fabric will be knit and manually cut along
demarcated lines in Singapore.  The sewing/linking, buttoning
(optional), washing (optional), inspection/rework, labeling and
packing will take place in Malaysia.



                              - 2 -

     In Plan B, only the knitting of the fabric will take place
in Singapore.  Cutting along pre-marked lines and all the other
processes set forth above will take place in Malaysia. 

     In your submission to this office you included photographs
of the sweater fabric which clearly show cutting lines that have
been knitted into the fabric.

ISSUES:

     What is the country of origin of the sweaters at issue under
the two manufacturing plans proposed by the manufacturer?

     How should the merchandise be marked?

LAW AND ANALYSIS:

     Country of origin determinations are made pursuant to
Section 12.130 of the Customs Regulations (19 CFR 12.130). 
Section 12.130(b) of the Customs Regulations 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) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place.  This regulation states that
these criteria are not exhaustive; one or any combination of
criteria may be determinative, and additional factors may be
considered.

     Section 12.130(e)(1) provides that an article or material
usually will be a product of a particular foreign territory or
country, or insular possession of the United States, when, prior
to importation into the United States, it has undergone in that
foreign territory or country or insular possession, any of the
following:

     (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;

                              - 3 -

     (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 ... 
           [emphasis added]

     Conversely, Section 12.130(e)(2) provides that, "[A]n
article or material usually will not be considered to be a
product of a particular foreign territory or country, or insular
possession of the U.S. by virtue of merely having undergone any
of the following:

     (i)   Simple combining operations, labeling, pressing,
               cleaning or dry cleaning, or packaging operations,
or
               any combination thereof;

     (ii)  Cutting to length or width and hemming or overlocking
                 fabrics which are readily identifiable as being
intended for 
            a particular commercial use;

     (iii) Trimming and/or joining together by sewing, looping,   
                      linking, or other means of attaching
otherwise completed 
            knit-to-shape component parts even when accompanied
by 
            other processes (washing, drying, mending, etc.)
normally 
            incident to the assembly process.

     (iv)  One or more finishing operations on yarns, fabrics, or
other textile                     articles, such as
showerproofing, superwashing, bleaching, decating,            
fulling, shrinking, mercerizing, or similar operations; or

     (v)   Dyeing and/or printing of fabrics or yarns.  [emphasis
added]

     In applying the above regulations to the manufacturing
scenario set forth in Plan A, the garments' country of origin
will be Singapore.  The operations that take place in Malaysia
are deemed simple combining operations and do not serve to confer
country of origin status as set forth in Section 12.130(e)(2)(i). 
Accordingly, the country of origin is where the fabric was
formed: Singapore.


                              - 4 -

     In Plan B, the country of origin of the sweaters is also
Singapore.  As provided in Section 12.130(e)(2)(iii), an article
usually will not be considered to be a product of a second
country where otherwise completed knit-to-shape component parts
from one country have been merely assembled in the second
country.  Customs has consistently ruled that fabric with cutting
lines or other markings which establish the identity of apparel
parts will be treated as knit-to-shape components.  See
Headquarter Ruling Letters (HRL's) 089767, dated October 21,
1992; 088069, dated January 25, 1990; 089155, dated May 29, 1991. 
Therefore, in this instance the country of origin of the sweaters
will be Singapore, where the fabric was knit, as cutting along
pre-marked lines of demarcation is not deemed to be a substantial
manufacturing process so as to confer country of origin status.

HOLDING:

     The country of origin of the sweaters at issue, in both
Plans A and B, is Singapore.

     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 the information furnished in connection with the ruling
request and incorporated in the ruling letter, either directly,
by reference, or by implication, is accurate and complete in
every material respect.  Should it subsequently be 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