HQ 555310: Cutting of foreign-made fabric to shape as a substantial transformation resulting in a U.S. product

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 555310

                                     May 2, 1989

          CLA-2-CO:R:C   555310 RA

          CATEGORY: Classification

          TARIFF NO.: 9802.00.80, HTSUS

          Jack D. Mlawski, Esq.
          Galvin Fox & Palmer
          425 Park Avenue
          New York, New York 10022-3506

          RE: Cutting of foreign-made fabric to shape as a substantial
              transformation resulting in a U.S. product

          Dear Mr. Mlawski:

               This is in response to your letter of February 16, 1989,
          requesting a ruling on behalf of Modas International, Inc.,
          regarding the tariff treatment of certain U.S.-produced lining
          panels used in the assembly abroad of ladies' wearing apparel.

          FACTS:

               Your client proposes to import various skirts, jackets, and
          pants assembled in the Dominican Republic from lining panels cut
          in the U.S. from foreign-made fabric.  The foreign bulk fabric
          will be cut into patterns for use as lining panels in the various
          garments.  For example, the lining panels for jackets will
          include separate front and back panels as well as panels for the
          sleeves.  In the Dominican Republic, the finished garment will be
          created by utilizing an outer shell made from foreign or
          Dominican-sourced bulk fabric which will be cut into patterns and
          sewed by machine to produce the shell.  The lining panels made in
          the U.S. will be sewed together to form the lining of the
          particular garment which is then sewed to the finished
          outershell.  No further manufacturing operations are to be
          performed on the linings.

          ISSUE:

               Will the cutting of the foreign-made fabric material to a
          specific pattern or shape in the U.S. result in linings which can
          be considered U.S.-fabricated components eligible for tariff
          treatment under subheading 9802.00.80, HTSUS?







                                        - 2 -


          LAW AND ANALYSIS:

               Tariff treatment under subheading 9802.00.80, HTSUS, is
          limited to fabricated components of U.S. origin which are
          assembled abroad.  Section 10.14(b), Customs Regulations (19 CFR
          10.14(b)), provides that an article made from foreign-produced
          materials can be treated as a product of the U.S. if it is
          substantially transformed in this country by a manufacturing
          process which results in a new and different article of commerce.
          The cutting of garment parts from foreign-made fabric has been
          held to be sufficient to transform the fabric into products of
          the U.S.  T.D. 85-39, 19 Cust. Bull. 58 (1985) and our ruling
          554929 dated November 3, 1988.

          HOLDING:

               On the basis of the information presented, the cutting in
          the U.S. of the foreign fabric into specific lining panels for
          ladies' wearing apparel is sufficient to make the panels
          fabricated U.S. components which will qualify after assembly
          abroad by sewing for tariff treatment under subheading
          9802.00.80, HTSUS, upon compliance with sections 10.11 to 10.24,
          Customs Regulations (19 CFR 10.11 to 10.24).

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division