HQ 958772: Country of origin determination for women's shorts, pants,jackets; 19 CFR 12.130; 19 CFR 102.21; HRL 958964

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 958772

                         May 2, 1996
CLA-2 RR:TC:TE 958772 NLP

CATEGORY: Classification 

Ms. Irene Dziubinski
ALPI, Inc.
1111 East Touhy Avenue-Suite 470
Des Plaines, IL 60018

RE:  Country of origin determination for women's shorts, pants,
jackets; 19 CFR 12.130; 19    CFR 102.21; HRL 958964

Dear Ms. Dziubinski:

     This is in response to your letter of December 21, 1995, on
behalf of your client, G.B.S., requesting a country of origin
determination for women's shorts, pants and jackets.  Diagrams of
the finished garments were submitted for our review.

FACTS:

     The merchandise at issue consists of the following:

     Women's woven shorts comprised of 60% wool, 35% polyester
and 5% other fibers
     Women's woven pants comprised of 80% wool and 20% nylon
     Women's woven jackets comprised of 80% wool and 20% nylon

     According to a letter from G.B.S., all of the above garments
will be produced with Italian fabrics, trims, etc....  The actual
cutting of the fabric will take place in Italy after which all
the cut pieces will be shipped to Bulgaria, where the garments
will be assembled.  The completed garments will then be shipped
directly to the United States (U.S.).  

ISSUE:

     What is the country of origin for the above described
women's shorts, pants and jackets?
     
     What are the proper country of origin marking requirements
for the subject merchandise?




LAW AND ANALYSIS:

     Country of origin determinations for textile products are
subject to Section 12.130 of the Customs Regulations (19 CFR
12.130).  Section 12.130(b) 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 or 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 for 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(d)(1) of the 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) of the Customs Regulations states that
in 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 as
a result of the                    manufacturing or processing
operations in each foreign territory or country,
          or insular possession of the U.S. 

          (ii)  The time involved in the manufacturing or
processing operations in 
          each foreign territory or country, or insular
possession of the U.S. 

          (iii) The complexity of the manufacturing or processing
operations in 
          each foreign territory or country, or insular
possession of the U.S.

          (iv)  The level or degree of skill and/or technology
required in the                    manufacturing or processing
operations in each foreign territory or country, 
          or insular possession of the U.S.

          (v)   The value added to the article or material in
each foreign territory or               country, or insular
possession of the U.S., compared to its value when               imported into the U.S.

     Section 12.130(e)(1) sets forth manufacturing or processing
operations which will usually constitute a substantial
transformation.  Section 12.130(e)(2) enumerates instances which
will usually not constitute a substantial transformation. 
Section 12.130(e) reads as follows:

     Manufacturing or processing operations:  (1) An article or
material usually will be a    product of a particular foreign
territory or country, or insular possession of the U.S.,    when
it has undergone prior to importation into the U.S. 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;

          (iii) Weaving, knitting or otherwise forming fabric;
          
          (iv) Cutting of fabric into parts and the assembly of
those parts into the               completed articles; or

          (v)  Substantial assembly by 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).

     (2) An 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 by sewing, looping,
linking, or other means of         attaching otherwise completed
knit-to-shape component parts produced in a       single country,
even when accompanied by other processes (e.g. washing,               drying, mending, etc.) normally incident to the
assembly process;

          *         *         *         *         *

     We have previously held that cutting of fabric into pattern
pieces constitutes a substantial transformation of the fabric,
resulting in the apparel pieces becoming a product of the country
where the fabric is cut.  See, Headquarters Ruling Letter (HRL)
955125, dated January 27, 1994; HRL 953697, dated July 26, 1993;
and HRL 952531, dated November 25, 1992.  

     Customs has also consistently held that the mere assembly of
goods by simple sewing is not enough to substantially transform
the components of an article into a new and different article of
commerce.  See also, HRL 082747, dated February 23, 1989; HRL
086665, dated March 23, 1990; HRL 951169, dated April 1, 1992;
HRL 734392, dated August 4, 1992; HRL 953489 dated June 14, 1993;
HRL 953698, dated July 19, 1993; HRL 953903, dated August 17,
1993.

     In the instant case, the cutting in Italy for the shorts,
pants and jackets materially alters the fabric into designated
component pieces.  The assembly process in Bulgaria, which
involves the sewing together of components cut from fabric in
Italy, does not involve sufficient skill or complexity to
constitute a substantial assembly as defined by the regulations
set forth above.  See,  HRL 951437, dated July 17, 1992, in which
Customs held that 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 Section 12.130(e)(1)(v).  Therefore, the country of
origin 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.

     Thus, the country of origin of the subject shorts, pants and
jackets is Italy as that is where the fabric was woven and cut
into specific parts and where the articles last underwent a
substantial transformation pursuant to 19 CFR 12.130.

     Section 304 of the Tariff Act of 1930, as amended (19
U.S.C.1304), requires that every article of foreign origin (or
its container) imported into the United States shall be marked in
a conspicuous place as legibly, indelibly and permanently as the
nature of the article (or container) will permit, in such a
manner as to indicate to an ultimate purchaser in the United
States the English name of the country of origin of the article. 
Additional labeling requirements are applicable to textile
products under the Textile Fiber Products Identification Act (15
U.S.C. 70).

     A label securely and conspicuously affixed to the shorts,
pants and jackets indicating Italy  as the country of origin will
satisfy the requirements of 19 U.S.C. 1304.  A label such as
"Made in Italy" is acceptable for purposes of this statute.







HOLDING:

     The country of origin of the subject merchandise is Italy
pursuant to 19 CFR 12.130.

     Pursuant to the country of origin marking requirements of 19
U.S.C. Section 1304, markings such as "Shorts or Pants or Jackets
(depending on the particular garment) Made in Italy" satisfy the
marking requirements.

     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. 

     Please be advised, however, that on December 8, 1994, the
President signed into law the Uruguay Round Agreements Act. 
Section 334 of that Act provides new rules of origin for textiles
and apparel entered, or withdrawn from warehouse, for
consumption, on and after July 1, 1996.  On September 5, 1995,
Customs published Section 102.21, Customs Regulations, in the
Federal Register, implementing Section 334 (60 FR 46188).  Thus,
effective July 1, 1996, the country of origin of a textile or
apparel product shall be determined by sequential application of
the general rules set forth in paragraphs (c)(1) through (5) of
Section 102.21.  On April 10, 1996, this office issued to you
Headquarters Ruling Letter 958964, wherein we provided you with
the country of origin for the above merchandise under the new
law.  We also provided you with the proper country of origin
marking requirements for the subject merchandise.


                                        Sincerely,




                                        John Durant, Director
                                        Tariff Classification
Appeals Division