The country of origin of footwear

N304835 July 15, 2019 OT:RR:NC:N:2:247 CATEGORY: Country of Origin Mr. John B. Pellegrini McGuire Woods LLP 1251 Avenue of the Americas, 20th Floor New York, NY 10020 RE: The country of origin of footwear Dear Mr. Pellegrini: In your letter dated June 13, 2019, on behalf of your client, Genesco Inc., you requested a country of origin ruling on finished footwear made in Vietnam from parts of Chinese origin. You have submitted two samples of “unformed uppers,” identified as Upper A and Upper B, which will be imported from China into Vietnam. Upper A is an unformed leather upper with an attached inner bootie sock. The bottom is open. Upper B is the same unformed upper with an open bottom. It has not been completely shaped by lasting, molding or otherwise. Your samples will be returned. The footwear parts are sourced from China and include leather uppers, booties, midsoles, and rubber/plastics outer soles. The company may also import a midsole/outer sole unit. In Vietnam, the parts are manufactured into finished footwear. The company is contemplating four different approaches to manufacture. The first involves Upper A (the upper without the attached bootie) combined with a Chinese midsole/outsole unit. The second involves Upper A combined with separate midsoles and outer soles assembled in Vietnam. The third involves Upper B (the upper/bootie unit) combined with the Chinese midsole/outsole unit. The final scenario involves combining Upper B with the separate midsoles and outer soles assembled in Vietnam. The processing in Vietnam converts the unformed uppers, and either midsoles and outsoles, or midsole/outsole units, into complete footwear. The booties are sewn to the unformed uppers, if not imported in that condition, and placed on a last. They are shaped, smoothed, primed, cemented, heat activated and pressurized. Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)), defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin.” In the case of Uniroyal Inc. v. United States, 3 CIT 220, 542F. Supp. 1026 (1982), aff'd, 702 F.2d 1022 (Fed Cir. 1983), the Court examined whether the addition of an outsole in the United States to imported uppers lasted in Indonesia changed the fundamental character of the imported article. After carefully examining both the imported (formed) upper and the finished shoe, the court concluded that the imported upper did not lose its distinct identity in the finished shoe, and to the contrary, was “the very essence” of the completed shoe. In other words, adding an outer sole to an already formed upper did not affect a substantial transformation and the country of origin would remain Indonesia, the origin of the formed upper. Regarding the subject merchandise, the Chinese uppers are unformed and not considered to have the “very essence” of footwear. Lasting, closing, and shaping in Vietnam would be affecting a substantial transformation. Based on the information submitted, we find that any of the proposed manufacturing processes performed in Vietnam substantially transform the Chinese originating components into Vietnamese products. The lasting, shaping and closing of the uppers yielding formed uppers from unformed uppers, and subsequent attachment to the midsoles and outer soles, or midsoles/outsole units, create a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Vietnam. Therefore, it is of the opinion of this office that the country of origin of the completed footwear, produced in Vietnam from unformed uppers, midsoles, and outer soles of Chinese origin is Vietnam. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Stacey.Kalkines@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division