HQ 952919: Country of origin of men's swim trunks; substantial transformation; 19 CFR 12.130; fabric is woven, dyed, cut, embroidered, inspected, folded, ironed and packed in country A; assembly by sewing in country B; HRL 951437; HRL 082747

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 952919

                        January 29, 1993


CLA-2 CO:R:C:T 952919 NLP

CATEGORY: Classification

Mr. Evans Huang
Details Co., LTD.
4FL, No. 43, Sec. 3, Shin Sheng N. Rd.
Taipei, Taiwan, R.O.C. 23285176

RE:  Country of origin of men's swim trunks; substantial
     transformation; 19 CFR 12.130; fabric is woven, dyed, cut,
     embroidered, inspected, folded, ironed and packed in country
     A; assembly by sewing in country B; HRL 951437; HRL 082747

Dear Mr. Huang:

     This is in response to your letter of October 20, 1992, in
which you requested a binding ruling addressing the country of
origin of men's swim trunks.  Samples of the component fabric
pieces and the completed article were provided for our
examination and will be returned to you under separate cover.

FACTS:

     The articles at issue are men's swim trunks, style no.
MS5000A.  The outer shell of the swim trunks are made of a woven
textile fabric and the lining is made of a knit textile fabric.

     According to your letter, the fabric for the swim trunks
will be woven, dyed and cut into 12 component pieces in Country
A.  In addition, in Country A, a logo will be embroidered on the
swim trunks and they will be inspected, folded, ironed and
packed.  The fabric components will then be sent to Country B for
assembly into men's swim trunks by sewing.

     The time expended and the skill and/or technology required
for the above processes are the following:

     1.   1 minute per yard for the woven fabric.
               This operation is performed by a weaving machine.
     2.   0.8-1 minute per yard for the knit fabric.
               This operation is performed by machine.
     3.   0.5 minutes for dying the fabric. 
               This operation is performed by a dying machine.
     4.   2 minutes to cut each component piece of fabric. 
               This operation is performed by a cutting machine. 


     5.   1 minute for embroidery of the logo.    
               This operation is performed by a logo embroidery
               machine.  
     6.   3 minutes for inspecting, folding and ironing.
               These operations are performed by skilled workers
               and an ironing machine, respectively.
     7.   3 minutes for packing into hangtag, polybag and carton.
               These operations are performed by a packaging
               machine.
     8.   7 minutes for assembly into a swim trunk.
               This operation is performed by a sewing machine.

8-10 skilled workers operate the machinery used in performing
steps 1-7.  2-4 skilled workers are used in performing the
operation in step 8.

     The values added, in US currency, for the above described
processes are as follows:

     1.   $2.20/PC added after weaving the fabric   (Country A)
     2.   $0.30/PC added after dying the fabric        "    "
     3.   $0.20/PC added after cutting the fabric      "    "
     4.   $0.35/PC added after logo embroidery         "    "
     5.   $0.70/PC added after the accessory           "    "
     6.   $0.30/PC added after ironing and packaging   "    "
     7.   $0.65/PC added after assembly into a swim trunk        
                                                    (Country B)

ISSUE:

     What is the country of origin for the subject swim trunks?

LAW AND ANALYSIS:

     Section 12.130(b) of the Customs Regulations (19 CFR
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(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)(iii) and (v) are relevant in the instant case.  These
Sections provide that an article will usually have undergone a
substantial transformation (a change in country of origin) if it
has undergone any of the following:

     (iii) weaving, knitting or otherwise forming fabric;


      (v) substantial assembly by sewing and/or tailoring        
          of all cut pieces of apparel articles which have been
          cut from fabric...into a completed garment....

     Customs has 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, Headquarters Ruling Letter (HRL) 951437, dated July 17,
1992, 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 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 082747, dated February 23, 1989, in which Customs determined
that the assembly of jeans was not a substantial transformation.

     In the instant case, the 12 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. 
Therefore, the country of origin of the swim trunks is Country A,
as that is where the fabric was produced and cut into specific
component parts and where the articles last underwent a
substantial transformation.

HOLDING:

     The country of origin of the men's swim trunks, style no.
MS5000A, is Country A.

     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