HQ 955208: Country of origin of men's trousers

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 955208

                           January 13, 1994

CLA-2  CO:R:C:T 955208 CAB

CATEGORY:  Classification

Mr. Samuel Chow
Taiwan Garments Manufacturing 
  Company Ltd.
P.O. Box 82
Taipei, Taiwan

RE:  Country of origin of men's trousers

Dear Mr. Chow:

      This is in response to your inquiry of October 8, 1993, requesting a country of
origin determination for men's trousers.  A sample was submitted for examination.  

FACTS:

      The trousers in question which are referred to as Style 6068, contain a zippered
closure, side pockets, double front pleats, two back pockets with a button closure and belt
loops.   The pants are constructed of 50 percent polyester/50 percent rayon fabric and
other materials that are produced in Taiwan.  The fabric will also be cut into garment
pieces in Taiwan.  The cut clothing pieces will then be exported to Country B or any
other 3rd country for sewing and assembly into the finished product.  The finished
product will then be packaged and exported to the United States. 
   
ISSUE:

      What is the country of origin of the merchandise in question?

LAW AND ANALYSIS:

      Country of origin determinations for textile products are subject to Section 12.130,
Customs Regulations (19 CFR 12.130).  Section 12.130 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), Customs Regulations, sets forth criteria for determining whether
a substantial transformation of a textile product has taken place.  This regulation states
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), 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), Customs Regulations, states that for 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

      (ii)      The time involved in the manufacturing or processing operation

      (iii)     The complexity of the manufacturing or processing operation

      (iv)      The level or degree of skill and/or technology required

      (v)       The value added to the article or material

      Section 12.130(e)(1), Customs Regulations, describes manufacturing or processing
operations from which an article will usually be considered a product of the country in
which those operations occurred.  Section 12.130(e)(1)(v) provides the following:

      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).

      According to T.D. 85-38, the final document rule establishing 19 CFR  12.130:

      The assembly of all the cut pieces of a garment usually is a substantial
      manufacturing process that results in an article with a different name, character,
      or use than the cut pieces.  It should be noted that not all assembly operation of
      cut garment pieces will amount to a substantial transformation of those pieces. 
      Where either less than a complete assembly of all the cut pieces of a garment is
      performed in one country, or the assembly is a relatively simple one, then Customs
      will rule on the particular factual situation as they arise, utilizing the criteria in
      Section 12.130(d).

      Customs has consistently determined that cutting fabric into garment pieces
constitutes a substantial transformation of the fabric and the clothing pieces become
products of the country where the fabric is cut.  (See e.g. Headquarters Ruling Letter
(HRL) 952531, dated November 25, 1992, HRL 089539, dated April 22, 1992).

      Customs has also 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.  (See HRL 092787, dated March 9, 1989; and HRL 082747, dated February
23, 1989).

      In this instance, the sewing operation performed in Country B or any other third
country involves the simple assembly of various garment pieces.  The sewing does not
amount to the complex sewing operation required by Section 12.130(e)(1)(v).  The cutting
process in Taiwan, however, does result in a substantial manufacturing operation.  The
cutting materially changes the fabric into designated garment pieces, which constitutes new
and different articles of commerce.  Also, the value added to the subject garment in
Taiwan is substantially more than the value added to the goods in the country of
assembly.  Therefore, the trousers at issue are a product of Taiwan.

HOLDING:

      The country of origin of Style 6068 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