Request for country of origin determination for T-shirts; tubular fabric; cut and sewn in Dominican Republic

HQ 956033 June 13, 1994 CLA-2 CO:R:C:T 956033 CMR CATEGORY: Classification Mrs. Acelis Angeles de Glass Executive Director National Council of Exporting Free Zones Av. Leopoldo Navarro No. 61 Santo Domingo, Dominican Republic RE: Request for country of origin determination for T-shirts; tubular fabric; cut and sewn in Dominican Republic Dear Mrs. de Glass: This is in response to your request regarding the processing of tubular fabric into T-shirts in the Dominican Republic. We have received the additional information we requested by letter dated March 17, 1994. FACTS: Tubular knit fabric is imported into the Dominican Republic. the fabric is produced in either Hong Kong, China or Taiwan. All the materials (fabric, sewing thread, labels, rib knit for the collar) are imported from Hong Kong, China or Taiwan. After importation into the Dominican Republic, the fabric is cut and sewn into T-shirts. A finished T-shirt was submitted with your supplemental submission. An examination of the garment shows that it has side seams, hemmed short sleeves, a rib knit collar and a straight hemmed bottom. ISSUE: What is the country of origin of the T-shirt which is produced in the Dominican Republic from tubular knit fabric? LAW AND ANALYSIS: Country of origin determinations for textiles and textile articles are governed by the terms of section 12.130 of the Customs Regulations (19 CFR 12.130). Section 12.130(b) provides that a textile or textile product which is processed in more than one country will be considered a product of that country where it last underwent a substantial transformation. A substantial -2- transformation is defined therein as a transformation by means of substantial manufacturing or processing operations into a new and different article of commerce. Section 12.130(d)(1) provides 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) sets out factors which will be considered in determining if merchandise has been subjected to substantial manufacturing or processing operations. These factors are: (i) The physical change in the material or article as a result of the manufacturing or processing operations; (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; and, (v) The value added to the article or material in each foreign territory or country compared to its value when imported into the U.S. Section 12.130(e)(1) sets out processes which will normally be considered to be substantial. Section 12.130(e)(1) states, in pertinent part, that an article will usually be a product of a particular country when it has undergone in that particular country: * * * (iv) Cutting of fabric into parts and the assembly of those parts into the completed article; * * * Therefore, based upon section 12.130(e)(1)(iv), the cutting of the tubular fabric into garment parts (the T-shirt body and sleeves) in the Dominican Republic and the assembly by sewing of those parts into the finished T-shirt constitutes a substantial transformation causing the Dominican Republic to be the country of origin of the T-shirt. HOLDING: The country of origin of the submitted T-shirt is the Dominican Republic. -3- 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)). If the information furnished is not accurate or complete, or there is a change in the factual situation, this ruling will no longer be valid. In such an event, a new ruling request should be submitted. Sincerely, John Durant, Director