CO:R:C:G 087639 CRS
Mr. Pak Cheung Wong
241 Centre Street
7th Floor
New York, NY 10013
RE: Cutting, sewing and finishing of Chinese fabric in Belize in
the manufacture of cotton surgical towels does not
constitute a substantial transformation under 19 CFR 12.130.
Towel classifiable in heading 6307.
Dear Mr. Wong:
This is in reply to you letter dated June 26, 1990, to our
New York office, concerning the classification and country of
origin of surgical towels. A sample was submitted.
FACTS:
The sample towel measures approximately 30 by 17 inches and
is made from 100 percent cotton. The towels will be cut and sewn
in Belize from Chinese fabric. The towels will be imported
through the ports of New York, Miami and Elizabeth, New Jersey.
ISSUE:
Whether the sample surgical towel is classifiable in heading
6307, Harmonized Tariff Schedule of the United States Annotated
(HTSUSA).
Whether the cutting and finishing of the subject merchandise
in Belize constitutes a substantial transformation under section
12.130, Customs Regulations.
LAW AND ANALYSIS:
Articles are classified under the HTSUSA in accordance with
the General Rules of Interpretation (GRIs). GRI 1 provides that
the classification of articles is determined according to the
terms of the headings and any relative section or chapter notes.
Heading 6307, HTSUSA, provides for other made up articles.
Customs has ruled that surgical towels are classifiable in this
heading. See Headquarters Ruling Letter (HRL) 082564 dated
December 1, 1988, and HRL 082556 dated November 21, 1988.
Pursuant to section 12.130, Customs Regulations (19 CFR
12.130), a textile that is processed in more than one country or
territory is considered to be a product of that country or
territory where it last underwent a substantial transformation.
A textile product will be considered to have undergone a
substantial transformation if it has been transformed by means of
substantial manufacturing or processing operations into a new and
different article of commerce.
In HRL 086132 of February 22, 1990, Customs ruled that the
cutting, hemming and finishing operations undertaken consequent
to the manufacture of surgical towels did not constitute either a
substantial manufacturing or processing operation as would result
in a substantial transformation under 19 CFR 12.130. The instant
surgical towel is therefore not transformed by the operations
performed in Belize and the country of origin remains the
People's Republic of China, the country where the fabric was
woven.
HOLDING:
The sample surgical towel is classifiable in subheading
6307.90.8710, HTSUSA, under the provision for other made up
articles, including dress patterns, other, other, surgical
towels, cotton towels of pile or tufted construction, surgical
towels. The towels are dutiable at the rate of 7 percent ad
valorem and are subject to textile category 369.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report on Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service, which is available for
inspection at your local Customs office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to importation of this merchandise to
determine the current status of any import restraints or
requirements.
The country of origin of the instant surgical towels is the
People's Republic of China.
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 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. In such a case, 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