HQ 952908: Country of origin of earmuffs

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 952908

                         March 22, 1993




CLA-2  CO:R:C:T   952908 CC

CATEGORY:  Classification

Richard Lee
Crown Pacific Accessories Inc.
7F. No.262 Sec.2, Chien Kuo N. Road
Taipei, Taiwan, R.O.C.
P.O. Box:68-1066

RE:  Country of origin of earmuffs

Dear Mr. Lee:

     This letter is in response to your inquiry, requesting the
country of origin of earmuffs.  Samples were submitted for
examination.

FACTS:

     The merchandise at issue consists of three styles of ear-
muffs, designated by you as regular earmuffs, halo earmuffs, and
giant earmuffs.  Each of these styles has an outer surface made
of acrylic knit fabric, with a backing of thinsulate.  The frame
of the earmuffs is made of nylon plastic.

     According to your submissions, Taiwanese acrylic fabric and
thinsulate will be cut to shape and sewn together.  Also, elastic
is sewn to the inner edge of the circular piles, the portion used
to cover the ears.   The acrylic strap, the piece used to cover
the headband, is sewn together.  The semi-finished earmuffs are
then sent to China, where these pieces are assembled with the
frame (from Hong Kong).  In addition foam and a small circular
piece of fabric, both from Hong Kong, are inserted into the
circular piles.  The outer fabric is then brushed and the
merchandise is packed for shipment.     

ISSUE:

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


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 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) 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.

       In Taiwan the earmuff materials are cut and sewn to create
the circular piles and acrylic strap.  The materials created by
this processing clearly identify the merchandise at issue as
earmuffs; thus, a new and different article of commerce has been
created in Taiwan.  In addition, we believe that the operations
performed in Taiwan constitute substantial manufacturing and
processing operations.  Consequently a substantial transformation
has taken place in Taiwan.  In China only a partial assembly
takes place, which is best described as simple assembly
operations.  More importantly, when the merchandise leaves Taiwan
it is clearly identifiable as earmuffs, and thus a new and
different article of commerce has not been created in China. 
Consequently a substantial transformation does not take place in
China; the last substantial transformation for the merchandise at
issue takes place in Taiwan.

HOLDING:

     The country of origin of the merchandise at issue 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