Country of origin of swimming shorts.

HQ 954446 August 11, 1993 CLA-2 CO:R:C:T 954446 HP CATEGORY: Classification Mr. James Lin-Jann Hsin Manager Jann Hsin Enterprise Co., Ltd. No. 43 Ming Chih St. Pan Chiao City, Taipei Hsien TAIWAN R.O.C. RE: Country of origin of swimming shorts. Dear Mr. Hsin: This is in reply to your letter of January 30, 1993. That letter concerned the country of origin of swimming shorts. FACTS: The merchandise at issue consists of men's woven swimming shorts, style no. 732559. The shell is 100% nylon and the lining is 100% knit polyester. The sample submitted with your ruling request bears the Speedo~ label RN 54934. The following table describes the processing details for the swim suit. Factors Country A Country B *Physical Change 1. Fabric woven Pieces in Article 2. Fabric cut into assembled 30 pieces, including into front & back panels, finished pockets, lining. product. *Time Expended 1. 5 minutes/yd for weaving 15 min/pc, (per unit) shell fabric. including 2. 2 minutes/yd for knitting packing. lining fabric. 3. 10 minutes/piece for design pattern & cutting. *Complexity 1. Weaving Assembly 2. Design patterns by sewing 3. Cutting into components *Skill or 1. 8-10 skilled workers 1. 2-4 technology 2. Weaving & dying machine skilled required 3. Computer marker packing workers machine & plotter machine 2. Sewing 4. Cutting machine machine; single stitch machine; overlock stitch machine; buttonhole & bartack machine *Value Added 1. $1.90/pc after weaving 85 cents and dying per pc 2. 65 cents per piece after after designing patterns & cutting assembly & packing ISSUE: Whether the components have undergone a substantial transformation in Country B for purposes of 12.130, Customs Regulations? LAW AND ANALYSIS: Textile commodities produced in more than one foreign country are subject to the country of origin requirements delineated in section 12.130 of the Customs Regulations (19 C.F.R. 12.130). These regulations provide that: . . . a textile product . . . which consists of materials produced or derived from, or processed in, more than one foreign . . . country shall be a product of that foreign . . . country where it last underwent a substantial transformation. 12.130(b). A textile product undergoes a substantial transformation when it is ". . . transformed by means of substantial manufacturing or processing operations into a new and different article of commerce." Section 12.130 of the regulations outlines the criteria used to determine the country of origin for textiles and textile products. Specifically, this provision of the regulations is considered in determining whether a textile product has undergone substantial manufacturing or processing operations, and what constitutes a new and different article of commerce. The factors considered are not exhaustive. In fact, "one or any combination of criteria may be determinative, and additional factors may be considered." In determining whether merchandise has undergone substantial manufacturing or processing operations, we consider the (1) physical change in the material or the article; (2) time involved; (3) complexity of the operations; (4) level or degree of skill and/or technology required; and (5) value added to the article in each country. Customs has 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. For example, in HRL 951437 of July 17, 1992, 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 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 952916 of January 29, 1993 (swim trunks); HRL 952919 of January 29, 1993 (swim trunks); HRL 734019 of June 18, 1991 (swim shorts) ;HRL 082747 of February 23, 1989 (jeans). In the instant case, the 30 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. Accordingly, the country of origin of the swim trunks is Country A, where the fabric was woven and the pieces cut. HOLDING: As a result of the foregoing, the country of origin for the men's swim trunks, style 732559, is Country A. The holding in this ruling applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in 177.9(b)(1), Customs Regulations (19 C.F.R. 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 C.F.R. 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. In such a case, it is recommended that a new ruling request be submitted in accordance with 177.2, Customs Regulations (19 C.F.R. 177.2). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, John Durant, Director Commercial Rulings Division