HQ 957911: Classification of a girls' T-shirt; Heading 6109; Country of originof girls' T-shirt; Section 12.130, 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 957911

                           July 20, 1995


CLA-2 R:C:T 957911 CAB

CATEGORY: Classification

TARIFFNO.: 6109.10.0045

Harold I. Loring, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman
245 Park Avenue
New York, NY 10167-0002

RE:   Classification of a girls'  T-shirt; Heading 6109; Country of origin
of girls' T-shirt; Section 
12.130, Customs Regulations

Dear Mr. Loring:

 This is in response to your inquiry of March 28, 1995,
requesting a country of origin and 
tariff classification ruling under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA), for a child's T-shirt. Your
request is on behalf ofGJM. (HK) Purchasing Ltd. A
sample was submitted for examination.

FACTS:

 The garment at issue is a child's short sleeve pocket T-shirt.
The article has a rib knit
crew neck, hemmed sleeves and bottom, and an embroidered image of
Mickey Mouse above the pocket. We are assuming for ruling purposes
that the article is constructed of 100 percent cotton material.

 The manufacturing process for the subject garment is as
follows: Knit fabric from China 
will be imported into Honduras without any cutting lines or lines
of demarcation and cut into a 
back panel, sleeves, a neck band, and pocket. The front panel will
be precut and machine-embroidered in China. Assembly of all of the
components into a completed T-shirt will be performed in Honduras.

ISSUES:

I.    What is the proper tariff classification for the subject
      garment?

II.   What is the country of origin for the subject garment?

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LAW AND ANALYSIS:

 Classification of goods under the HTSUSA is governed by the
General Rules of 
Interpretation (GRI' s). GRI 1 provides that classification shall
be determined according to the 
terms of the headings and any relative section or chapter notes.
Merchandise that cannot be classified in accordance with GRI 1 is
to be classified in accordance with subsequent GRI's taken 
in order.

TARIFF CLASSIFICATION

 Heading 6109, HTSUSA, is the provision for T-shirts, singlets,
tank tops and similar garments, knitted or crocheted. The garment
at issue is a child' s T-shirt which fits squarely within the
provision of Heading 6109, HTSUSA. Therefore, the garment at issue
is classifiable under Heading 6109, HTSUSA.

COUNTRY OF ORIGIN

      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 subsequent
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;
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 (iv) The level or degree of skill and/or technology 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)(iv), Customs
Regulations, specifically provides 
that the cutting of fabric into parts and the assembly of those
parts into the completed article will
be a manufacturing operation that will usually result in an article
being considered a product of the country in which those operations
occurred.

 According to T.D. 85-38, the final document rule establishing
19 CFR 12.130:

 The assembly of all the 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 situation as they          arise, utilizing the
criteria in Section 12.130(d).

      In this instance, the front panel of the subject garment is
cut and machine-embroidered in China. The cutting of the front
panel in China materially alters the fabric into a designated 
garment piece and substantially transforms the fabric into a new
and different article of commerce. In Honduras, the back panel,
sleeves, neckband, and pocket are cut and the garment pieces are
assembled into the completed T-shirt. This cutting process
similarly serves to substantially transform the fabric into
designated garment pieces. The assembly operations completed in
Honduras are mere combining and sewing operations and do not
possess the requisite degree of complexity to be considered a
substantial manufacturing operation.

 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, Headquarters Ruling Letter (HRL) 95253
1, dated November 25, 
1992, and HRL 089539, dated April 22, 1992).

      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 082747, dated February 23, 1989).

If assembly to completion of various components is not sufficient
                         to constitute a
substantial transformation within the purview of Section 12.130,
                  Customs Regulations, and the
                                
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component parts of an article have been substantially transformed
prior to assembly in different countries, a different test must be
applied to determine the country of origin status of the garment.
In Customs Memo 088778, dated March 25, 1991, this office
determined that in manufacturing situations which are not covered
by 19 CFR 12.130, a country of origin determination shall be
predicated on the portion of the article which imparts the
essential character to the garment. Explanatory Note VIII to GRI
3(b) which sets forth the standards used in an essential character
determination, states the following:

 The factor which determines essential character will vary as
 between different kinds of goods. It may, for example, be
 determined by the nature of the material or component, its
 bulk, quantity, weight or value, or by the role of the
 constituent material in relation to the use of the goods.

 In this case, neither tile embroidered front panel nor the
back panel combined with the 
sleeves, neckband, and pocket imparts the essential character to
the T-shirt at issue. Both of the major components, the front and
back panels, are constructed of the same fabric and perform 
similar functions. Moreover, the presence of the embroidered Mickey
Mouse design is not significant enough to warrant a finding that
the front panel imparts the essential character of the subject
garment.

 Customs Memo 088778 further provides that in situations where
no one component 
imparts the essential character of a garment, country of origin
will be determined according to the component which governs the
classification of the garment. This is determined using GRI 3(c),
which states that the heading occurring last in numerical order
among those equally meriting consideration will govern
classification. The country of origin of the component which
governs classification using GRI 3(c) will also determine the
country of origin for the entire article. In this case, however, as
both major components are made from the same fabric, there are no
competing headings and as such, GRI 3(c) is not useful in this
situation.

 Customs was faced with a similar manufacturing operation for a
girls' top at issue in HRL 954961, dated November 2, 1993. The
manufacturing process involved in HRL 954961 was as follows: Fabric
was knit in China, the front panel of the top was cut in China, and
an applique was attached in that country. These designated garment
pieces were then transported to St. Lucia 
where the back panel and collar were cut and the garment pieces
were assembled into the 
completed garment. Customs stated the following:

 In situations where components are manufactured in different
 countries, the manufacturing process does not constitute a
 substantial transformation, and no one component 
 determines the classification of the article, Customs will
determine the country of origin on  the basis of where the
article last underwent a significant processing operation. * * *
 In the manufacturing scenario presented to this office in HRL
 953708, the girls' top last undergoes a significant processing
 operation in St. Lucia as this is the country where the 
 last cutting occurs and where virtually all of the cut pans,
with the exception of the flower

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 applique, are sewn and assembled into completed articles.
 While this manufacturing scenario does not constitute a
 substantial transformation for purposes of 19 CFR 12.130, it
 nevertheless is deemed complex enough to confer country of
 origin to an article in 
 situations that fall outside of the scope of Section 12.130.
It is using this standard that we   determine St. Lucia to be the
country of origin of the girls' top.

 Using the standard set forth in HRL 954961, the instant
article is a product of Honduras, 
as this is the country where the last Cutting operation takes place
as well as the sewing and assembly operation into the completed
article.

HOLDING:

 The T-shirt at issue is classifiable in subheading
6109.10.0045, HTSUSA, which provides for girls' knitted or
crocheted T-shirts, of cotton. The applicable rate of duty is 20.6
percent ad valorem and the textile restra'mt category is 339.

 The designated textile and apparel category may be subdivided
into parts. If so,  visa and quota requirements applicable to the
subject merchandise may be affected. Since part categories 
are the result of international bilateral agreements which are
subject to frequent renegotiations and changes, to obtain the most
current information available, we suggest that you check, close to
the time of shipment, The Status Report on Current Import Quotas
(Restraint Levels), an intemal issuance of the U.S. Customs
Service, which is available for inspection at your local Customs
office.

 Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to importation of this merchandise to
determine the current status of any import restraints or
requirements.

      The country of origin of the T-shirt at issue is Honduras.

      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 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 fumished is not complete and does not comply
with 19 CFR 177.9(b)(1 ), the ruling will be subject

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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.

                          Sincerely,


                          John Durant, Director
                          Commercial Rulings Division