CLA-2 CO:R:C:G 087138 HP
Mr. Allan Gordon
President
PERFORMANCE TRADING
An affiliate of Jefferson Trading Co.
520 SO. LAFAYETTE PARK PLACE, SUITE 200
LOS ANGELES, CA 90057
RE: HRL 086665 affirmed. Country of origin of
diapers. Folding operations distinguishes construction
from that of towels.
Dear Mr. Gordon:
This is in reply to your letter of May 11, 1990,
requesting clarification of HRL 086665 of March 23,
1990, with respect to a recently discovered mistake of
fact.
FACTS:
In HRL 086665, we stated the merchandise at issue
to consist of
100% cotton diapers, measuring in final
form 37.47cm x 53.34 cm (14 " x 21").
The fabric, woven in China, is
exported through Hong Kong to either
Zimbabwe or Mozambique in piece goods.
The fabric is 2 ply, 92cm (35.88")
wide, and is constructed of a double
warp weave. You state that the fabric
has a value ranging from approximately
52 to 62 per meter, cost and freight
($3.38 to $4.09 per dozen). No lines
of demarcation exist.
In either Zimbabwe or Mozambique,
the fabric is cut to width (-
the
original width) and length. The top of
the fabric is folded of the distance
to the bottom, and the bottom is folded
of the distance to the top. This
creates a fabric 6 ply in the 43%
center panel and 2 ply in the two 28.5%
end panels. Where extra layers are
required, additional panels are
inserted in the center (8 ply). This
fabric is then sewn lengthwise and
of the distance from the top, hemmed on
all four sides, and packaged as a final
product. Assuming the fabric cost of
62, the cost of these operations is
$6.30 per dozen FOB.
You now inform us that:
1. Country 2 now may be Zimbabwe, Mozambique,
Lesotho or Namibia;
2. You have negotiated prices on the lower end of
the scale we originally quoted;
3. The fabric is still cut length wise, but is
only folded over width wise; and
4. The fabric is hemmed at the top and bottom
only, not all four sides;
and inquire as to whether this would change the result
we found in our original ruling.
ISSUE:
Whether the additional information changes our
previous country of origin determination?
LAW AND ANALYSIS:
1. The identity of Country 2 would not change a
country of origin determination, for duty and
quota purposes, under 12 C.F.R. 130.
2,3&4. It is our opinion that the finished product
would still be a product of Country 2.
Although the processing is less than originally
thought, the folding operations, and, where
applicable, the insertion of additional layers
during assembly, still changes the merchandise
from cotton fabric to children's diapers.
These operations distinguish the diaper
manufacturing operations from those of, for
example, towels.
HOLDING:
As a result of the foregoing, the diapers are still
considered a product of Country 2. Pursuant to 19
C.F.R. 177.9, HRL 086665 of March 23, 1990, is
affirmed.
Sincerely,
JOHN DURANT, DIRECTOR
COMMERCIAL RULINGS DIVISION