Country of origin of certain women's woven wool stirrup pants

HQ 958033 July 6, 1995 CLA-2 R:C:T 958033 CMR CATEGORY: Classification Ms. Tamara Borkowski ALPI USA Inc. 1111 East Touhy Avenue Suite 470 Des Plaines, IL 60018 RE: Country of origin of certain women's woven wool stirrup pants Dear Ms. Borkowski: This is in response to your request of May 30, 1995, and follow-up letter of June 1, 1995, on behalf of Gallinaro Buying Service (G.B.S.), concerning the country of origin of certain women's woven wool stirrup pants processed in Italy and Bulgaria. As the request was made by you, we will address this response to you. We cannot address this response to the Ministry of Trade of Bulgaria as you have asked because they did not request this ruling. FACTS: The garments at issue are women's stirrup woven wool pants, style S 641. The woven wool fabric is made in Italy and consists of 72 percent wool, 25 percent viscose rayon and 3 percent lycra fibers. The fabric is cut into garment pieces (16 total) in Italy. The cut pieces are sent to Bulgaria. The zippers, buttons, thread and labels used in the production of the pants are all made in Italy and sent to Bulgaria. In Bulgaria, the cut pieces and other components are sewn to form the finished pants. The cut lining material for the pockets (pocket backing) is supplied in Bulgaria. The finished pants are packed in Bulgaria for shipment. No sample was received with your request. However, you did supply a diagram of the various components and documentation which detailed the production process. ISSUE: What is the country of origin of the woven wool pants at issue?  -2- LAW AND ANALYSIS: Section 12.130 of the Customs Regulations, 19 CFR 12.130, sets forth the principles for determining the country of origin of textiles and textile products subject to section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854). The regulation provides that a textile or textile product produced by processing in more than one country will be considered a product of that country in which it last underwent a substantial transformation. 19 CFR 12.130(b). Substantial transformation is defined in 12.130(b) as a transformation "by means of substantial manufacturing or processing operations into a new and different article of commerce." Section 12.130(e)(1) provides, in pertinent part, that an article or material usually will be considered a product of a particular country if while in that country it undergoes any of the following: (iv) Cutting of fabric into parts and the assembly of those parts into the completed article; or (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). Customs has consistently held that the cutting of fabric into garment pieces is a substantial transformation and the garment pieces become a product of the country in which they were cut. We have also consistently held that when garment parts are cut in one country and the garment is assembled in another country, unless the assembly operation is a substantial assembly such as that referred to in 12.130(e)(1)(v), the country of origin remains the country in which the garment parts are cut. See, HRL 088235 of March 15, 1991, and rulings cited therein. In this case, the fabric is cut into garment pieces in Italy and those pieces are assembled in Bulgaria. The assembly of the cut garment pieces is not considered a complex, substantial assembly as required in 12.130(e)(1)(v). Instead, it is viewed as a relatively simple joining together by sewing of the various component pieces. See, Headquarters Ruling Letter (HRL) 083461 of May 15, 1990; HRL 083359 of May 18, 1990; HRL 951436 of July 17, 1992; HRL 952223 of October 26, 1992; HRL 953225 of April 9, 1993; HRL 954604 of October 28, 1993; and, HRL 955208 of January 13, 1994--all of which involve the country of origin determination for pants assembled in one country of garment pieces cut in another country. -3- As the assembly of the garment pieces is viewed as a simple assembly, the country of origin of the wool pants is the country in which the garment pieces are cut, i.e., Italy. It is in Italy that the last substantial transformation occurs. In regard to the pocket back lining material sourced in Bulgaria, it is our view that it is de minimis in relation to the garments at issue and thus should not affect the origin determination. See, HRL 954711 of January 19, 1994. HOLDING: The country of origin of the woven wool stirrup pants is Italy. 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