HQ 954446: Country of origin of swimming shorts.

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 954446

                         August 11, 1993

CLA-2 CO:R:C:T  954446 HP

CATEGORY:  Classification

Mr. James Lin-Jann Hsin
Manager
Jann Hsin Enterprise Co., Ltd.
No. 43 Ming Chih St.
Pan Chiao City, Taipei
Hsien TAIWAN R.O.C.

RE:  Country of origin of swimming shorts.

Dear Mr. Hsin:

     This is in reply to your letter of January 30, 1993.  That
letter concerned the country of origin of swimming shorts.

FACTS:

     The merchandise at issue consists of men's woven swimming
shorts, style no. 732559.  The shell is 100% nylon and the lining
is 100% knit polyester.  The sample submitted with your ruling
request bears the Speedo~ label RN 54934.  The following table
describes the processing details for the swim suit.

Factors             Country A                          Country B

*Physical Change    1. Fabric woven                    Pieces
   in Article       2. Fabric cut into                 assembled
                     30 pieces, including              into
                     front & back panels,              finished 
                     pockets, lining.                  product.

*Time Expended      1.  5 minutes/yd for weaving       15 min/pc,
   (per unit)       shell fabric.                      including
                    2.  2 minutes/yd for knitting      packing.
                    lining fabric.
                    3.  10 minutes/piece for design
                    pattern & cutting.

*Complexity         1.  Weaving                        Assembly
                    2.  Design patterns                by sewing
                    3.  Cutting into components

*Skill or           1.  8-10 skilled workers           1.  2-4
  technology        2.  Weaving & dying machine        skilled
  required          3.  Computer marker packing        workers
                    machine & plotter machine          2.  Sewing
                    4.  Cutting machine                machine;
                                                       single
                                                       stitch
                                                       machine;
                                                       overlock
                                                       stitch
                                                       machine;
                                                       buttonhole
                                                       & bartack
                                                       machine

*Value Added        1.  $1.90/pc after weaving         85 cents
                    and dying                          per pc
                    2.  65 cents per piece after       after
                    designing patterns & cutting       assembly
                                                       & packing

ISSUE:

     Whether the components have undergone a substantial
transformation in Country B for purposes of  12.130, Customs
Regulations?

LAW AND ANALYSIS:

     Textile commodities produced in more than one foreign
country are subject to the country of origin requirements
delineated in section 12.130 of the Customs Regulations (19
C.F.R.  12.130).  These regulations provide that:

          . . . a textile product . . . which consists
          of materials produced or derived from, or
          processed in, more than one foreign . . .
          country shall be a product of that foreign .
          . . country where it last underwent a
          substantial transformation.

 12.130(b).  A textile product undergoes a substantial
transformation when it is ". . . transformed by means of
substantial manufacturing or processing  operations into a new
and different article of commerce."

     Section 12.130 of the regulations outlines the criteria used
to determine the country of origin for textiles and textile
products.  Specifically, this provision of the regulations is
considered in determining whether a textile product has undergone
substantial manufacturing or processing operations, and what
constitutes a new and different article of commerce.  The factors
considered are not exhaustive.  In fact,  "one or any combination
of criteria may be determinative, and additional factors may be
considered."  In determining whether merchandise has undergone
substantial manufacturing or processing operations, we consider
the (1) physical change in the material or the article; (2) time
involved; (3) complexity of the operations; (4) level or degree
of skill and/or technology required; and (5) value added to the
article in each country.

     Customs has 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.  For example, in HRL 951437 of July 17, 1992, the
assembly process of women's pants in Malaysia, which involved the
sewing together of components that were cut from fabric in
Singapore, did not involve sufficient skill or complexity to
constitute a substantial transformation as defined by
 12.130(e)(V).  Therefore, the country of origin for the pants
was found to be Singapore, as that was where the piece goods were
cut into specific parts and where the articles last underwent a
substantial transformation.  See also HRL 952916 of January 29,
1993 (swim trunks); HRL 952919 of January 29, 1993 (swim trunks);
HRL 734019 of June 18, 1991 (swim shorts) ;HRL 082747 of February
23, 1989 (jeans).

     In  the instant case, the 30 cut pieces of fabric are
assembled by sewing into swim trunks in Country B.  It is our
position that this operation does not constitute a substantial
transformation as defined by the regulations set forth above. 
Accordingly, the country of origin of the swim trunks is Country
A, where the fabric was woven and the pieces cut.

HOLDING:

     As a result of the foregoing, the country of origin for the
men's swim trunks, style 732559, is Country A.

     The holding in this ruling applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in  177.9(b)(1),
Customs Regulations (19 C.F.R.  177.9(b)(1)).  This section
states that a ruling letter is issued on the assumption that all
of 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 C.F.R.  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. In such a case, it is recommended that a
new ruling request be submitted in accordance with  177.2,
Customs Regulations (19 C.F.R.  177.2).

     A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported.  If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.

                           Sincerely,



                      John Durant, Director
                   Commercial Rulings Division