HQ 954979: Country of origin of knit sweaters; 19 CFR 12.130; sweaterpanels (back, front, two sleeves) are knit to shape, or cut, incountry A; sweater panels are assembled in country B; simpleassembly and finishing operations do not constitute a substantialtransformation.

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 954979 

                         January 6, 1994

CLA-2 CO:R:C:T 954979 SK

CATEGORY: Classification 

Frank J. Desiderio
Grunfeld, Desiderio, Lebowitz & Silverman
245 Park Avenue
New York, N.Y. 10167-0002

RE: Country of origin of knit sweaters; 19 CFR 12.130; sweater
panels (back, front, two sleeves) are knit to shape, or cut, in
country A; sweater panels are assembled in country B; simple
assembly and finishing operations do not constitute a substantial
transformation.

Dear Mr. Desiderio:

     This is in response to your letter of September 1, 1993, on
behalf of your client, Tommy Hilfiger Sportswear, in which you
request a country of origin determination for knitted sweaters. 
No sample was submitted to this office.

FACTS:

     The garments at issue undergo the following manufacturing
processes:

COUNTRY A (India or Pakistan) -- Sweater panels (back, front,
sleeves) are knit to shape or cut;

COUNTRY B (People's Republic of China) -- Knit sweater panels are
assembled and finished (joined by looping or sewing, trimmed,
labeled, washed, pressed and packaged). 

ISSUE:

     What is the country of origin of the subject merchandise?

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 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 in 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) 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;
     (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; 
 
     (ii)   The time involved in the manufacturing or processing; 
     
     (iii)  The complexity of the manufacturing or processing;

     (iv)  The level or degree of skill and/or technology required 
            in the manufacturing or processing operations;
   
     (v)   The value added to the article or material;

     Section 12.130(e)(1) provides that an article or material
usually will be a product of a particular foreign territory or
country, or insular possession of the United States when, prior to
importation into the United States, it has undergone in that
foreign territory or country or insular possession, any of the
following:

     (i)   Dyeing of fabric and printing when accompanied by two
           or more of the following finishing operations:        
bleaching, shrinking, fulling, napping, decating,           
permanent stiffening, weighting, permanent embossing,        or
moireing;

     (ii)  Spinning fibers into yarn;

     (iii) Weaving, knitting or otherwise forming fabric;
     
     (iv)  Cutting of fabric into parts and the assembly of those
           parts into the completed article; 

     (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).
           [emphasis added]
       
     According to T.D. 85-38 (19 Cust. Bull. 58, 70; 50 FR 8714),
the final document rule establishing 19 CFR 12.130:

          [T]he 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 operations of cut garment pieces will
          amount to a substantial transformation of those pieces.

     Where either less than complete assembly of all the cut pieces
of a garment is performed in one country, or the assembly is a
relatively simple one, Customs will           rule on the
particular factual situations as they arise, utilizing the criteria
in section 12.130(d). 

     This office has consistently 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 Headquarters Ruling Letters (HRL's) 082747, dated
February 23, 1989; 086665, dated March 23, 1990; 951169, dated
April 1, 1992; 951437, dated July 17, 1992; 952647, dated January
27, 1993.

     In the instant case, the assembly operations to be performed
in Country B (People's Republic of China) 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.  No great degree
of skill or advanced technology is required, nor is tailoring
involved.   

     The operations performed in Country A (India or Pakistan),
however, are deemed to substantially transform the article as per
Section 12.130(e)(1)(iii) which provides that "weaving, knitting
or otherwise forming fabric" will usually confer country of origin
status.  Similarly, if the sweater panels are not knit to shape in
Country A, but rather cut from the knitted fabric, this too is
deemed a substantial transformation; the cutting of fabric into
designated garment pieces is a substantial manufacturing process
that serves to create a new and different article of commerce.

HOLDING:

     Your submission states that the sweater fabric will either be
knit to shape, or sweater panels will be cut from the formed
fabric, in either India or Pakistan.  If the sweater panels are
knit to shape, and not subsequently cut, the country of origin of
the sweaters at issue will be the country where the fabric is
formed: India or Pakistan (Country A).

     If sweater panels are cut from already formed fabric, and this
cutting occurs in the same country as where the fabric is formed
(either India or Pakistan), the country of origin of the sweaters
at issue will be India or Pakistan (Country A) as this is where the
garments last undergo a substantial transformation.   We note that
if the fabric is formed and cut in different countries, the country
where the fabric is cut into garment pieces confers country of
origin status to the garment as this is the country where the
garment last undergoes a substantial transformation (i.e., fabric
is woven in India and cut into garment pieces in Pakistan: country
of origin is Pakistan).   

     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