HQ 954447: Country of origin marking for U.S. origin sweatshirts that are embossed with U.S. origin polyurethane foam, adhesive webbing and facing in Mexico; 19 CFR 12.130(c); HRLs 555760 and 555249

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 954447

                        September 9, 1993

CLA-2 CO:R:C:T  954447 NLP

CATEGORY: Classification

Ms. Elaine Jacoby
Miles & Joffroy, Inc.
2225 Avenida Costa Este
Suite 1600
Otay Mesa, CA  92073

RE:  Country of origin marking for U.S. origin sweatshirts that
     are embossed with U.S. origin polyurethane foam, adhesive
     webbing and facing in Mexico; 19 CFR 12.130(c); HRLs 555760
     and 555249

Dear Ms. Jacoby:

     This is in response to your letter dated February 8, 1993,
on behalf of your client, Coast Belt, Inc., in which you
requested a ruling concerning the country of origin marking
requirements applicable to U.S. origin sweatshirts that will
embossed in Mexico and returned to the U.S.

FACTS:

     The articles at issue are blank 100% cotton sweatshirts that
are manufactured in the U.S.  These sweatshirts will be exported
to Mexico where they will be embossed with material of U.S.
origin.  The embossing procedure utilizes pre-cut U.S. origin
polyurethane foam, adhesive webbing and a pellon type facing
material.  The sweatshirt will be turned inside out and placed on
a rotating table.  The pre-cut foam, adhesive webbing and facing
will be centered on the inside front of the sweatshirt, which
will be positioned under the embossing picture forming dye of the
sonic welding machine.  The dye will be lowered and the machine
will impress the dye on the materials for approximately one
minute.  This operation affects a permanent embossed picture on
the front of the sweatshirt.

     The approximate values of the sweatshirts will range from
$3.00 to $5.00.  The aggregate cost of the embossing materials
will range from $0.05 to $0.10 per sweatshirt.  The total cost of
the assembly operation is approximately $0.04 per sweatshirt.  




     In your letter, you state that it has been suggested that 
the sweatshirts be marked as follows:

          U.S. GARMENT
          FURTHER PROCESSED IN MEXICO

ISSUE:

     What are the country of origin marking requirements
applicable to a U.S. made sweatshirt that will be embossed in
Mexico with U.S. origin pre-cut polyurethane foam, adhesive
webbing and facing? 

LAW AND ANALYSIS:

     Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304), provides that, unless excepted, every article of foreign
origin imported into the U.S. shall be marked in a conspicuous
place as legibly, indelibly and permanently as the nature of the
article (or its container) will permit, in such manner as to
indicate to the ultimate purchaser in the U.S. the English name
of the country of origin of the article.

     Because the articles in question are textile products
subject to section 204 of the Agricultural Act of 1956, as
amended (7 U.S.C. 1854), section 12.130, Customs Regulations (19
CFR 12.130) is applicable.  Section 12.130 provides that
generally the country of origin of a textile product is that
foreign territory, country or insular possession where the
article last underwent a substantial transformation.  However,
there is an exception to the general rule set forth in section
12.130(c), Customs Regulations (19 CFR 12.130(c).  Section
12.130(c) provides the following:

          Chapter 98, Subchapter II, Note 2, Harmonized Tariff
          Schedule of the United States, provides that any
          product of the U.S. which is returned after having been
          advanced in value or improved in condition abroad, or
          assembled abroad, shall be a foreign article for the
          purposes of the Tariff Act of 1930, as amended.  In
          order to have a single definition of the term "product
          of" and, therefore, a single country of origin for a
          textile or textile product, notwithstanding paragraph
          (b), merchandise which falls within the purview of
          Chapter 98, Subchapter II, Note 2, Harmonized Tariff
          Schedule of the United States, may not, upon its return
          to the U.S., be considered a product of the U.S. 

     In Headquarters Ruling Letter (HRL) 555760, dated November
16, 1990, Customs dealt with the country of origin marking
requirements applicable to U.S. manufactured blank 100% cotton 
t-shirts that where shipped to Guatemala, where a design was
embroidered on the front of the t-shirts.  The t-shirts were then
returned to the U.S.  Customs held that 19 CFR 12.130(c) was
applicable and since the t-shirts were advanced in value and
improved in condition by the foreign embroidery operation, they
were not considered a product of the U.S.  Therefore, for
purposes of 19 U.S.C. 1304, a label such as "Made in Guatemala,
U.S.A. fabric" or "Product of Guatemala, U.S.A. fabric" was
considered acceptable.  See also, HRL 555249, dated June 16,
1989, wherein U.S. made sweatshirts were exported to Haiti, where
they were subjected to a chenilling process and then they were
returned to the U.S.  These sweatshirts were considered products
of Haiti for marking purposes pursuant to 19 CFR 12.130(c).

     In the present case, the embossing of the U.S. manufactured
sweatshirts in Mexico advances their value and improves their
condition and thus renders them products of Mexico.  Therefore,
the sweatshirts must be marked with the appropriate country name,
legibly, conspicuously and permanently.  The following markings
would be considered acceptable:

               Made in Mexico, U.S. fabric; or         
               Product of Mexico, U.S. fabric.

HOLDING:

     The embossing operation performed on the U.S. made
sweatshirts in Mexico advances them in value and improves them in
condition.  Therefore, for country of origin marking purposes,
the sweatshirts are considered to be products of Mexico pursuant
to 19 CFR 12.130(c) and must be marked accordingly.  

                                   Sincerely,



                                   John Durant, Director