HQ 086568: Country of origin of a baseball-style cap

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 086568

                          May 30, 1990




CLA-2  CO:R:C:G   086568  CC

CATEGORY:  Classification

Mr. Steve Hill
General Manager
Four Seasons Garment Company
1111 Western Row Road
Mason, OH 45040

RE:  Country of origin of a baseball-style cap

Dear Mr. Hill:

     This letter is in response to your inquiry for a country of
origin determination, for quota and marking purposes, for a
baseball-style cap.  Samples were submitted for examination.

FACTS:

     According to your submissions, fabric of Chinese origin
will be cut into components there.  Also, the crown panel will
be sewn together and seam tape applied in China.  The following
components will be shipped to Sri Lanka for assembly:
unassembled visor pieces and visor board, sweatband, completed
crown assembly, braid, adjustable strap, and the button for the
top of the crown.

     In Sri Lanka, the following operations will be performed:
attach button to crown, sew visor piece together, stuff visor
board into pocket and close visor, apply six rows of stitches to
visor, sew sweatband to crown, sew visor to crown, sew snap to
crown, block cap, inspect caps, purchase packaging, and pack caps
for export.

     You believe that the processing done in Sri Lanka represents
approximately 51 percent of the sewing labor.  Also, you believe
that the cap at issue is substantially transformed in Sri Lanka.




ISSUE:

     What is the country of origin for quota and marking
purposes for the cap at issue?

LAW AND ANALYSIS:

     Section 12.130(b) of the Customs Regulations 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) of the Customs Regulations sets forth
criteria in 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) 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) 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.

     We do not believe that a new and different article results
from the processing operations performed in Sri Lanka.  When the
cap components arrive in Sri Lanka, the crown of the cap is
already formed; therefore, this article already has the character
of a cap.  In addition, a substantial amount of the processing
operations are performed in China, where the fabric is made and
cut to make the components, and pieces are sewn together to form
the crown of the cap.  We believe that in application of 19 CFR
12.130, the last substantial transformation of the cap at issue
takes place in China.  Therefore, the country of origin for quota
and marking purposes for the cap at issue is China.

HOLDING:

     The country of origin for quota and marking purposes for the
cap at issue is China.


                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division