HQ 954980: HRL 952536 and HRL 954023 revoked. Country of origin of T-shirts. Cutting and assembly.

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 954980

                       September 16, 1993

CLA-2 CO:R:C:T  954980 HP

CATEGORY:  Classification

Mr. William W. Jackson
Partner
Woo Brown Jackson
P.O. Box 779 Boroko
PAPUA NEW GUINEA

RE:  HRL 952536 and HRL  954023 revoked.  Country of origin of T-
shirts.  Cutting and assembly.

Dear Mr. Jackson:

     This is in reply to your letter of August 20, 1993.  That
letter concerned the country of origin of shirts, exported from
Papua New Guinea (PNG).

FACTS:

     The merchandise at issue consists of either knitted or woven
t-shirts, either 100 percent cotton or a 65 percent polyester /
35 percent cotton blend.  In HRL 952536 of February 1, 1993,
(affirmed in HRL 954023 of May 18, 1993) we described this
merchandise as follows:

          Presently, the knitted fabrics come into
          Papua New Guinea (PNG) from either Australia,
          Japan, Hong Kong or Singapore in rolled
          bundles with an average weight of 45 pounds. 
          The woven material comes from the same
          countries, "rolled normally with 44/45 x 120
          yards."  At this time, the garments are cut,
          sewn, trimmed and finished in PNG.

               You now question as to the country of
          origin of "pre-cuts to be finished off in
          PNG" for export to the United States.  It is
          our understanding that the fabric will be
          either knitted or woven and cut to patterned
          sizes and shapes in either Australia, Japan,
          Hong Kong or Singapore, and the patterned
          pieces assembled into t-shirts, packaged and
          shipped in PNG.

 Based upon the above description, we ruled that "the assembly
operations performed in PNG do not substantially transform the t-
shirts into products of PNG.  Those operations constitute a
simple sewing of the cut patterned pieces into a t-shirt."  In
your current letter, you advise us that we misinterpreted your
original statement of the facts, in that the cutting of garment
parts from material lengths takes place not in Country "A", but
in PNG.  "[O]nly the materials used (material, buttons and
thread) originate from outside of [PNG]."

ISSUE:

     Whether the cutting and assembly in PNG results in a
substantial transformation 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.

     The cutting of fabric into parts and the assembly of those
parts into the completed article is normally sufficient to
consider that article a product of country "B".   12.130(e)(iv),
Customs Regulations.  Assuming for the purposes of this ruling
that no cutting lines or other lines of demarcation exist on the
fabric, the country of origin of the woven or knitted T-shirts is
Papua New Guinea.  Due to the above-mentioned mistake of fact,
HRL 952536 and HRL 954023 are revoked.

HOLDING:

     As a result of the foregoing, the instant merchandise is
considered a product of Papua New Guinea.

     In order to insure uniformity in Customs classification of
this merchandise and eliminate uncertainty, we are revoking HRL
952536 of February 1, 1993, and HRL  954023 of May 18, 1993,
pursuant to 19 C.F.R.  177.9(d)(1), to reflect the above
classification effective with the date of this letter.  For the
purposes of future transactions in merchandise of this type,
including that for which the present classification is requested,
HRL 952536 and HRL 954023 will not be valid precedent.

     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