HQ 954583: Country of origin of swimming shorts.

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 954583

                         August 18, 1993

CLA-2 CO:R:C:T  954583 HP

CATEGORY:  Classification

Mr. James Lin-Jann Hsin
Manager
Jann Hsin Enterprise Co., Ltd.
No. 43 Ming Chih St.
Pan Chiao City, Taipei
Hsien TAIWAN R.O.C.

RE:  Country of origin of swimming shorts.

Dear Mr. Hsin:

     This is in reply to your letter of January 30, 1993.  That
letter concerned the country of origin of swimming shorts.

FACTS:

     The merchandise at issue consists of men's woven swimming
shorts, style no. 732517.  The shell is 100% nylon and the lining
is 100% knit polyester.  The sample submitted with your ruling
request bears the Speedo  label RN 54934.  The following table
describes the processing details for the swim suit.

Factors             Country A                     Country B

*Physical Change    1. Fabric woven & knitted
   in Article       2. Fabric cut into 27 pieces, Pieces
                    including front & back        assembled into
                    panels, pockets, lining.     finished
                                                  product.
                   

*Time Expended      1.  5 min/yd for weaving      14 min/pc,
   (per unit)            shell fabric.            including
                    2.  2 min/yd for knitting     packing
                    lining fabric.
                    3.  9 min/pc for design
                    pattern & cutting.
*Complexity         1.  Weaving                   Assembly by
                    2.  Design patterns           sewing
                    3.  Cutting into components

*Skill or           1.  8-10 skilled workers      1.  2-4 skilled
technology                                             workers
   required         2.  Weaving & dying machine   2.  Sewing
                                                  machine: single
                    3.  Computer marker packing   stitch machine;
                    machine & plotter machine     overlock stitch
                    4.  Cutting machine           machine;
                                                  buttonhole &
                                                  bartack machine

*Value Added   1.  $1.85/pc after weaving         80›/piece after
                    and dying                     assembly &
               2.  60›/piece after designing      packing
                    patterns & cutting.

ISSUE:

     Whether the components have undergone a substantial
transformation in Country B for purposes of 12.130, Customs
Regulations?

LAW AND ANALYSIS:

     Textile commodities produced in more than one foreign
country are subject to the country of origin requirements
delineated in section 12.130 of the Customs Regulations (19
C.F.R. 12.130).  These regulations provide that:

          . . . a textile product . . . which consists of materials
          produced or derived from, or processed in, more than one
          foreign . . . country shall be a product of that foreign
          . . . country where it last underwent a substantial
          transformation.

12.130(b).  A textile product undergoes a substantial
transformation when it is ". . . transformed by means of
substantial manufacturing or processing  operations into a new
and different article of commerce."

     Section 12.130 of the regulations outlines the criteria used
to determine the country of origin for textiles and textile
products.  Specifically, this provision of the regulations is
considered in determining whether a textile product has undergone
substantial manufacturing or processing operations, and what
constitutes a new and different article of commerce.  The factors
considered are not exhaustive.  In fact,  "one or any combination
of criteria may be determinative, and additional factors may be
considered."  In determining whether merchandise has undergone
substantial manufacturing or processing operations, we consider
the (1) physical change in the material or the article; (2) time
involved; (3) complexity of the operations; (4) level or degree
of skill and/or technology required; and (5) value added to the
article in each country.     Customs has 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.  For example, in HRL 951437 of July 17, 1992, the
assembly process of women's pants in Malaysia, which involved the
sewing together of components that were cut from fabric in
Singapore, did not involve sufficient skill or complexity to
constitute a substantial transformation as defined by
12.130(e)(V).  Therefore, the country of origin for the pants
was found to be Singapore, as that was where the piece goods were
cut into specific parts and where the articles last underwent a
substantial transformation.  See also HRL 952916 of January 29,
1993 (swim trunks); HRL 952919 of January 29, 1993 (swim trunks);
HRL 734019 of June 18, 1991 (swim shorts) ;HRL 082747 of February
23, 1989 (jeans).

     In  the instant case, the 27 cut pieces of fabric are
assembled by sewing into swim trunks in Country B.  It is our
position that this operation does not constitute a substantial
transformation as defined by the regulations set forth above. 
Accordingly, the country of origin of the swim trunks is Country
A, where the fabric was woven and the pieces cut.

HOLDING:

     As a result of the foregoing, the country of origin for the
men's swim trunks, style 732517, is Country A.

     The holding in this ruling applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in 177.9(b)(1),
Customs Regulations (19 C.F.R. 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
C.F.R. 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. In such a case, it is recommended that a new
ruling request be submitted in accordance with 177.2, Customs
Regulations (19 C.F.R. 177.2).

     A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported.  If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.

                            Sincerely,



                      John Durant, Director
                   Commercial Rulings Division