HQ 954604: Country of origin of women's pants; fabric woven and cut in Taiwan; assembly by sewing in Country B; 19 CFR 12.130; mere assembly is not a substantial transformation

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 954604

                        October 28, 1993

CLA-2 CO:R:C:T 954604  NLP

CATEGORY: Classification

Mr. Barry E. Powell
Grunfeld, Desiderio, Lebowitz & Silverman
245 Park Avenue
New York, NY 10167-0002

RE:  Country of origin of women's pants; fabric woven and cut in
     Taiwan; assembly by sewing in Country B; 19 CFR 12.130; mere
     assembly is not a substantial transformation 

Dear Mr. Powell:

     This is in response to your letter of July 8, 1993, on
behalf of your client, Tuntex Incorporation, requesting a country
of origin determination for three styles of women's pants. 
Samples of the finished pants, i.e., after assembly, as well as
samples of the component parts, before assembly, were submitted
to this office for examination and will be returned to you with
this ruling.

FACTS:

     The submitted samples consist of three styles of women's
woven pants.

     Style L802 is a women's woven pant that will be constructed
from four major panels (two front leg and two back leg panels)
and twenty three ancillary components, including four front
pocket bag pieces, belt loops and six waistband interlinings. 
The unlined pants will feature a front zipper fly secured at the
waist by a button, two front "J" style serge-faced "bag" pockets,
a back welt pocket secured by a button tab, a waistband
elasticized at the sides, two stylized front belt loops and three
back belt loops.  The front of the pants will feature three
pleats at each hip.

     Style C817 is a women's woven pant that will be constructed
of four major panels (two front and two back leg panels) and
twenty three ancillary components, including four front pocket
bag pieces, belt loops and six waistband interlinings.  The
unlined pants will feature a front zipper fly secured at the
waist by a button, two welt front pockets, a waistband
elasticized at the sides, two stylized front belt loops and three
back belt loops.  The front of the pants will feature three
pleats on each hip. 

     The third style, L695, is a women's woven pant that will be
constructed of four major panels (two front and two back leg
panels) and sixteen ancillary components, including four front
pocket bag pieces, belt loops and six waistband interlinings. 
The unlined pants will feature a front zipper fly secured at the
waist by one hidden and one visible tab button closure, two front
"J" style serge-faced "bag" pockets, a waistband elasticized at
the sides, and one belt loop at the right side of the waistband. 
The front of the pants will also feature three pleats on each
hip.   

     You state that Tuntex is contemplating a multi-country
processing operation whereby fabric will be woven and cut into
component parts in Taiwan.  The component parts and trim will be
sent to a second country (Country B) for assembly by sewing and
for packaging for export to the United States (U.S.).

     The relative costs of the components and production
operations for the three styles are as follows:

                           L802         C817         L695

     Piece Goods (Taiwan)  63.10%       61.71%       65.20%
     Cutting (Taiwan)       6.27%        6.97%        4.80%
     Sewing (Country B)     5.04%        6.10%        4.06%
     Packing (Country B)    0.61%        0.70%        0.62%
     Trim (Taiwan)          9.98%        9.52%       10.32% 
     Profit (Taiwan)       15.00%       15.00%       15.00%
                           _____        _____        _____
                            100%         100%         100%

The costs and time required (in minutes) for cutting and sewing a
dozen garments of each of these styles are as follows:

                            L802        C817         L695
                         cost/time    cost/time    cost/time     
     
     Cutting (Taiwan)    $6.23/216    $6.00/208    $4.62/160

     Sewing (Country B)  $5.01/371    $5.25/355    $3.90/278


ISSUE:

      What is the country of origin of the three styles of
women's woven pants?

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 or 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 for 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) of the 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) 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.


     Section 12.130(e) of the Customs Regulations sets forth
criteria which aid us in determining whether an article has been
subjected to certain manufacturing or processing operations which
serve to substantially transform an article into a new and
different article of commerce.  Specifically, Section
12.130(e)(1)(v) is relevant in the instant case.  This Section
provides that:

          An article or material usually will be a product of a
     particular foreign territory or country, or insular
     possession of the U.S., when it has undergone prior to
     importation into the U.S. in that foreign territory or
     country, or insular possession any of the following:

          *         *         *         *         *

     (v)   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).

     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.  For example, in Headquarters
Ruling Letter (HRL) 951437, dated July 17, 1992, Customs held
that 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 Section 12.130(e)(v).  Therefore, the country of origin 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 082747, dated February
23, 1989; HRL 086665, dated March 23, 1990; HRL 951169, dated
April 1, 1992; HRL 734392, dated August 4, 1992; HRL 953489 dated
June 14, 1993; HRL 953698, dated July 19, 1993; HRL 953903, dated
August 17, 1993.

     In the instant case, the cutting in Taiwan for the pants
materially alters the fabric into designated component pieces.  
The assembly operations to be performed in Country B are mere
combining and sewing operations and do not possess the requisite
degree of complexity to be deemed substantial manufacturing
processes for purposes of conferring country of origin status. 
In assembling the component pieces, no great degree of skill or
advanced technology is required, nor is tailoring involved.  
Thus, the country of origin of these articles is Taiwan as that
is where the fabric was woven and cut into specific parts and
where the articles last underwent a substantial transformation. 

HOLDING:

     The country of origin for pant styles L802, C817 and L695 
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 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