HQ 953227: Country of origin determination for girls' shirt

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 953227

                         March 26, 1993

CLA-2 CO:R:C:T 953227 CAB

CATEGORY:  Classification

Ms. Jenny Feng
Sung Kiang Industrial Co., Ltd.
6th Fl. No. 67, Sung Kiang Rd.
Taipei, Taiwan, (Formosa)
Republic of China

RE:  Country of origin determination for girls' shirt

Dear Ms. Feng:

     This ruling is in response to your inquiry of January 5,
1993, requesting a country of origin determination for girls'
shirts.  A sample was submitted for examination.

FACTS:

     The sample in question is a girls' woven knit long sleeved
turtle neck shirt.  The shirt is constructed of 55 percent
cotton/45 percent polyester material.  A tag attached to the
shirt states that it is made in Taiwan.  The fabric is
manufactured, knitted, dyed, and cut into garment pieces in
Taiwan.  The cut apparel pieces are then sent to China for
sewing, assembly, and packaging for exportation to the United
States.

     The total cost of the materials and processing for the
garments at issue is $13.76 per dozen.  The cost of manufacturing
and materials incurred in Taiwan is $11.26 per dozen while the
cost of processing and materials incurred in China is $2.50 per
dozen. 

ISSUE:

     What is the country of origin for the goods in question?

LAW AND ANALYSIS:

     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 substantial 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

     (iii)   The complexity of the manufacturing or processing

     (iv)    The level or degree of skill

     (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)(v) provides the
following:

     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).

     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).

     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 e.g. Headquarters Ruling Letter
(HRL) 952531 November 25, 1992; HRL 089539 dated April 22, 1992;
HRL 951426 dated April 8, 1992; HRL 089834 dated September 26,
1991; and HRL 084979 dated October 23, 1989).

     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 e.g. HRL 082787 dated March 9, 1989; and HRL
082747 dated February 23, 1989).

     In the instant scenario, the sewing operation in China
involves the simple assembly of the cut garment pieces.  The
sewing operation does not amount to the complexity necessary to
substantially transform the merchandise in accordance with
Section 12.130.  

     The processing operation in Taiwan which involves cutting
the fabric into designated garment pieces, knitting, and dyeing
results in a sufficiently complex manufacturing operation which
transforms the fabric into new and different articles of
commerce.  Therefore, the merchandise in question underwent its
last substantial transformation in Taiwan.  

HOLDING:

     The country of origin of the subject merchandise is Taiwan. 

     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 furnished is not complete and
does not comply with 19 CFR 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.  Accordingly, it is
recommended that a new ruling request be submitted in accordance
with section 177.2, Customs Regulations (19 CFR 177.2).

                                   Sincerely,



                                   John Durant, Director
                                   Commercial Rulings Division