HQ 955213: Country of origin of men's shirts

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 955213

                         January 26, 1994

CLA-2  CO:R:C:T 955213 CAB

CATEGORY:  Classification

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

RE:  Country of origin of men's shirts

     This is in response to your inquiry of October 5, 1993,
requesting a country of origin determination for men's shirts. 
Illustrations of the subject garments were included in your
submission.

FACTS:

     There are two types of shirts at issue.  One style is
described as a men's long sleeve woven shirt.  The shirt contains
a full frontal opening and button closure, a front placket, a
collar, a front breast pocket, sleeve plackets, and cuffs.  The
other style at issue is a short sleeve men's shirt which is
constructed essentially the same as the long sleeve shirt except
that it has short sleeves without plackets or cuffs.  The
manufacturing steps for the long sleeve shirt are as follows: 
Fabric is woven and cut into garment pieces in Taiwan which is
referred to as Country A;  The collar is pressed and fused to
interlining; The collar, cuffs, and sleeve plackets are assembled;
The garment pieces, including the assembled collar, cuffs, and
sleeve plackets, are then sent to Country B for sewing, assembly,
and packaging.  The manufacturing steps for the short sleeve shirt
are as follows:  Fabric is woven in Taiwan; The fabric is then cut
into garment pieces which include the collar, front and back
panels, the yoke, front pockets, and sleeves.  Also in Taiwan, the
collar is fused to the interlining, a placket is created, and
buttons and buttonholing is inserted.  The garment pieces are then
sent to Country B where the front and back panels, collar, and
sleeves are assembled, pressed, and packaged for exportation.   





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, 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
e.g. HRL 082787, dated March 9, 1989; and HRL 082747, dated
February 23, 1989).

     In this case, the sewing operation performed in Country B or
any other country concerning the short sleeve shirt 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 Country A (Taiwan),
however, does constitute a substantial manufacturing operation. 
The cutting operation materially alters the fabric into designated
garment pieces, which constitute new and different articles of
commerce.  Therefore, in accordance with prior Customs rulings and
Section 12.130(e), the short sleeve shirt is subject to the last
substantial transformation in Country A (Taiwan), where it was cut
into garment pieces.

     In HRL 954448 dated August 19, 1993, Customs was confronted
with a country of origin determination for a long sleeve men's
shirt which contained plackets, a yoke and a collar. The garment
was very similar in design to the subject long sleeve shirt. 
Customs defined substantial assembly in HRL 954448 as that
operation, whether by sewing or tailoring, when all the components
of the garments are attached together to form that completed shirt. 
Customs further stated that a substantial transformation occurs at
the time of assembly of the individual component parts into a long
sleeve shirt with collar, cuffs, full-front opening with plackets,
and shoulder yokes.  

     When determining the country of origin of the long sleeve
shirt in light of HRL 954448, it appears that the complete assembly
in Country B is more than a simple sewing operation.  Instead, the
complete assembly of the cut components, including the cut pieces
and previously assembled collar, cuff, and sleeve plackets,
requires the requisite skill and technology for a substantial
assembly in accordance with Section 12.130(e)(1), Customs
Regulations, and therefore, constitutes a substantial
transformation. 

HOLDING:

     The country of origin of the short sleeve shirt at issue is
Country A (Taiwan).  The country of origin of the long sleeve shirt
is Country B where a substantial assembly operation occurs.  

     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