HQ 954558: Country of Origin determination for men's knit 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 954558

                        October 25, 1993

CLA  CO:R:C:T  954558  jb

CATEGORY:  CLASSIFICATION

Mr. Ted Chen
Diamond Hosiery & Thread Co., Ltd.
150 Nanking E. Rd., Sec. 2, 11th Floor
Taipei, Taiwan
R.O.C.

RE:  Country of Origin determination for men's knit shirt 

Dear Mr. Chen:

     This letter is in response to your inquiry of 
July 1, 1993, requesting a country of origin determination for a
man's knit shirt.  A sample of the finished shirt, after
assembly, as well as a sample of the component parts, before
assembly, were submitted to this office for examination.

FACTS:

     The submitted samples consist of a completed men's knit
shirt, referred to as Style number 870200478, and its component
parts before completion.  The shirt features a partial frontal
opening and button closure, a collar and short sleeves with
ribbed knit cuffs. The front panel component consists of 20 cut
pieces sewn together to form a check pattern.  

     You state that a multiple country processing operation is
involved in the manufacture of the shirt.  The manufacturing
procedures involve the following operations in Country A and
Country B:

     COUNTRY A                                          

     1. Sourcing of knit fabric 
     2. Weaving of fabric
     3. Dyeing
     4. Cutting of 23 pieces for the shirt consisting of pieces  
        for the front panel, sleeves and back panel
        (not including collar and cuff pieces)         
                                                   
     COUNTRY B                                                  
                                                     
     5. Assembly of front panel pieces

     COUNTRY A

     6. Assembly of front and back panels, sleeves, collar and   
        cuffs
     7. Embroidering
     8. Inspecting
     9. Folding
    10. Packing

ISSUE:

     What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

     Section 12.130 of the Customs Regulations (19 CFR 12.130)
sets forth the principles of country of origin for textiles and
textile products subject to Section 204 of the Agricultural Act
of 1956, as amended (7 U.S.C. 1854).

     Pursuant to 19 CFR 12.130(b), the standard of substantial
transformation governs the country of origin determination where
textiles and textile products are processed in more than one
country.  The country of origin of textile products is deemed to
be that foreign territory or country where the article last
underwent a substantial transformation.  Substantial
transformation is said to occur when the article has been
transformed into a new and different article of commerce by means
of substantial manufacturing or processing.
     
     The factors to be applied in determining whether or not a
manufacturing operation is substantial are set forth in 19 CFR
12.130(d).  Section 12.130(e)(1) 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) states that an article will be a
product of a particular foreign country, when it has undergone
prior to importation into the U.S. in that foreign country:

     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 of all cut pieces of suit-type jackets, suits and
     shirts).





     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.  Customs has also 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 HQ 082747, dated February 23, 1989; 
HQ 086665, dated March 23, 1990; HQ 951169, dated April 1, 1992;
HQ 951437, dated July 17, 1992; HQ 734392, dated August 4, 1992;
HQ 953489, dated June 14, 1993; HQ 953698, dated July 19, 1993).

     The sewing operation performed in Country A involves the
simple assembly of component pieces to form the front and back
panels, sleeves, collar and cuffs.  Similarly, the sewing
operation performed in Country B involves the simple assembly of
several cut pattern pieces to form only the front panel of the
shirt.  Neither the sewing operation performed in Country A nor
Country B involve the complex sewing operation contemplated by
Section 12.130(e)(1)(v), as for example, that found in the
assembly and tailoring of all cut pieces of suit-type jackets,
suits and shirts.  

     Accordingly, as the cutting in Country A changes the fabric
into designated garment parts, this constitutes a substantial
transformation of that fabric and confers country of origin.

HOLDING:

     The country of origin of the submitted merchandise is
Country A.  It is at the cutting process, in Country A, that the
textile product undergoes a substantial transformation and is
transformed into a new and different article of commerce.

     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 the ruling letter,
either directly, by reference, or by implication, is accurate and
complete in every material respect.  

     








     Should it be subsequently 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