CLA-2 CO:R:C:T 088245 JS
Rashid Humayun
Brexco, Inc.
P.O.Box 3322
Arlington, VA 22203
RE: Country of Origin of Surgical Towels
Dear Mr. Humayun:
This is in reference to your letter of November 20, 1990,
requesting a country of origin determination for surgical towels
imported from Bangladesh.
FACTS:
The sample at issue is 100 percent cotton fabric which is
woven in China and then exported to Bangladesh in uncut,
unmarked rolls of 100 meter lengths and 36 or 54 inch widths.
You state that the manufacturing processes which occur in
Bangladesh are as follows:
- the fabric is bleached white by a mechanized process
- the bleached fabric is dyed blue and dried by mechanized
processes in accordance with USFDA regulations
- testing for color fastness and toxicity is conducted
- the fabric is cut into 18 inch x 29 inch rectangles by a
process which is partially mechanized and partially
manual
- the cut fabric is manually sewn and hemmed
- the towels are manually folded and packed
ISSUE:
Whether cutting, hemming and sewing in Bangladesh of fabric
woven in China constitutes a substantial manufacturing process
such that the completed surgical towels would be considered a
manufacture of Bangladesh for purposes of 19 CFR 12.130.
LAW AND ANALYSIS:
The country of origin of textiles and textile products is
determined by the application of Section 12.130 of the Customs
Regulations. In determining the country of origin of textile or
textile products which consist of materials produced or derived
from, or processed in, more than one country, the imported
article is considered to be a product of the country in which the
last substantial transformation took place. A product has
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. A new and
different article of commerce will usually result when there is a
change in commercial designation or identity, fundamental
character or commercial use.
Section 12.130 (d) establishes criteria for determining
whether an article has been substantially transformed. However,
the criteria set forth in 19 CFR 12.130(d) are not exhaustive;
one or any combination of these criteria may be determinative,
and additional factors may be considered.
In accordance with 19 CFR 12.130(d)(2), the following
factors are to be considered in determining whether merchandise
has been subjected to substantial manufacturing or processing
operations: the physical change in the material or article, the
time involved in the manufacturing or processing operations, the
complexity of the operations, the level or degree of skill and/or
technology required, and the value added to the article.
Although most of the manufacturing processes at issue occur
in Bangladesh, the weaving of the raw material in China is
deemed to be the factor which contributes most to the creation of
the final product. The fabric constructed in China is
manufactured in such a way as to be readily identifiable in the
industry as surgical toweling fabric; the special weave of the
raw material marks it for use as surgical towels.
The processing which takes place in Bangladesh does not indicate,
as regards the time or level of skill required, that assembly requires
anything more than a number of simple operations which do not
constitute a substantial manufacturing or processing operation. See,
HQ 086132 (February 2, 1990) and HQ 086971 (June 19, 1990)(cutting,
hemming and stitching of fabric not considered substantial
manufacturing process as compared to weaving of original surgical
toweling material). The information you provide regarding the
manufacturing steps carried out in Bangladesh do not result in anything
more than the cutting, hemming and stitching of specialized fabric as
contemplated in the rulings above. Consequently, the towels have not
been substantially transformed in Bangladesh. Wherever the fabric is
produced is therefore the country of origin pursuant to 19 CFR 12.130
for quota and country of origin marking purposes.
HOLDING:
The assembly operations performed in Bangladesh do not
constitute a substantial transformation as required by 19 CFR
12.130. The country of origin for the merchandise at issue is
China and a Chinese visa must accompany the goods.
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 Customs
Regulations 19 CFR 177.9 (b)(1), which states that a ruling
letter is issued on the assumption that all information
furnished in connection with the ruling request and incorporated
therein, either directly, by reference, or by implication, is
accurate and complete in every material respect. Should it be
subsequently 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 that
there is a change in the facts previously furnished, the country
of origin determination may be affected. In such 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