HQ 0955264 - Country of origin determination for women's one piece swimsuits; 19 CFR 12.130; substantial transformation occurs at the time the panels are cut; assembly of panels is a simple sewing operation - United States International Trade Commision Rulings

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HQ 955264

February 7, 1994

CLA-2 CO:R:C:T 955264 jb

CATEGORY: CLASSIFICATION

Mr. Gigi Chen
Charter Corp.
6 Fl. No. 92. Sec. 2
Tun Hwa S. Rd.
Taipei, Taiwan
R.O.C

RE: Country of origin determination for women's one piece swimsuits; 19 CFR 12.130; substantial transformation occurs at the time the panels are cut; assembly of panels is a simple sewing operation

Dear Mr. Chen:

This letter is in response to your inquiry of October 9, 1993, requesting a country of origin determination for women's swim suits. Samples of the swimsuit panels before assembly into their completed state, as well as the assembled, completed swimsuits were sent to this office for examination.

FACTS:

The body of the swimsuits is constructed of 100 percent nylon with a lining of 100 percent polyester. The front of the swimsuits features a scoop neck and three openings (in the shape of holes) down the center. The rear side of the swimsuits is almost backless except where the two fasteners meet at the back of the neck.

You state in your letter that the production process for the swimsuits is as follows:

TAIWAN CHINA
knitting sewing dyeing packing cutting

ISSUE:

What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations (19 CFR 12.130), sets forth the principles for determining the country of origin for textiles and textile products subject to section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854).

Section 12.130(b) of the Customs Regulations 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 for 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 or (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 as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insu1ar possession of the U.S.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

Section 12.130(e)(1) of the 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). [Emphasis added]

We have previously held that cutting of fabric into pattern pieces constitutes a substantial transformation of the fabric, resulting in the apparel pieces becoming a product of the country where the fabric is cut (See, HQ 081320, dated April 14, 1989; HQ 086696, dated June 8, 1990; HQ 082924, dated March 26, 1990; HQ 085611, dated January 17, 1990; HQ 951426, dated April 8, 1992).

Section 12.130(e)(i)(v) makes note that there must be substantial assembly by sewing or tailoring for substantial transformation to occur. Sewing together the panels of the swimsuit does not necessitate extensive or skilled sewing in the assembly. The assembly of the panels performed in China does not involve the complex sewing operation contemplated by Section 12.130(e)(1)(v), as for example, that found in the assembly and tailoring of all cut pieces of suit-type jackets, suits and shirts.

The cutting in Taiwan materially changes the fabric into designated garment parts. This constitutes a substantial transformation of that fabric. It is the opinion of this office that at the cutting process the garment is readily identifiable as a swimsuit The sewing operation in China is relatively simple and does rise to the level of complexity required for a substantial transformation to occur.

HOLDING:

Based on the information provided, the country of origin for the swimsuits is Taiwan, as that is where the last substantial transformation 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 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,

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