MAR-2-05 CO:R:C:V 734262
Tan Ghe Liang
Managing Director
Kapo Industries PTE. LTD.
531 Yishun Industrial Park A
Singapore 2776
RE: Country of origin marking for fabric, printing, bleaching,
dyeing, substantial transformation, 19 CFR 12.130
Dear Mr. Liang:
This is in response to your letter dated June 26, 1991,
requesting a ruling on the country origin marking requirements
for fabric. Accompanying your letter were five samples of the
fabric for our review.
FACTS:
The raw fabrics (griege fabrics) are made in Singapore or
nearby countries. You state that in Singapore, the fabric is
treated by bleaching, dyeing, printing, and resin finishing,
including special coating of the fabric. You have provided an
outline of the steps involved in processing the raw fabric into a
finished printed fabric.
We have consulted with the Office of Laboratories &
Scientific Services to determine what processing is done to each
of the five sample fabrics. The Office of Laboratories &
Scientific Services determined that the three knit fabrics, one
with a pink background, one with a red background, and one with a
black background were bleached and printed. The sample woven
fabric with a blue background was bleached and printed. Finally,
the knit fabric with a creme background was printed. It was also
determined that none of the sample fabrics were dyed.
ISSUE:
What is the country of origin of the sample fabrics and
printed in Singapore? LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304), provides that, unless excepted, every article of foreign
origin imported into the U.S. shall be marked in a conspicuous
place as legibly, indelibly, and permanently as the nature of the
article (or container) will permit, in such a manner as to
indicate to the ultimate purchaser in the U.S. the English name
of the country of origin of the article.
Section 12.130, Customs Regulations (19 CFR 12.130), sets
forth the principles for making country of origin determinations
for textile and textile products subject to section 204 of the
Agricultural Act of 1956, as amended (7 U.S.C. 1854) ("section
204"). According to T.D. 90-17, published in the Federal
Register on March 1, 1990, (55 FR 7303), the principles of
country of origin for textiles and textile products contained in
19 CFR 12.130 are applicable to such merchandise for all
purposes, including duty and marking.
Pursuant to 19 CFR 12.130, the standard of substantial
transformation governs the determination of the country of origin
where textiles and textile products are processed in more than
one country. The country of origin of textile products is deemed
to be that foreign territory, country, or insular possession
where the article last underwent a substantial transformation.
Substantial transformation is said to occur when the article has
been transformed into a new and different article of commerce by
means of substantial manufacturing or processing operations. In
other words, for textiles governed by 19 CFR 12.130 there is a
two part test for substantial transformation: 1) a new different
article of commerce and 2) a substantial manufacturing or
processing operation.
Section 12.130(e)(1)(i) provides that an article or material
will be a product of a particular foreign country or territory
when it has undergone prior to importation into the U.S. dyeing
of fabric and printing when accompanied by two or more of the
following finishing operations: bleaching, shrinking, fulling,
napping, decating, permanent stiffening, weighting, permanent
embossing, or moireing. Section 12.130(e)(2)(v) indicates that
an article or material usually will not be considered to be a
product of a particular foreign territory or country where the
only processing being done to the article is dyeing and/or
printing of fabric. In other words, to have a change in the
country of origin, the fabric must be both dyed and printed as
well as being subjected two additional finishing processes.
Performing only one of the two operations will not be enough to
change the country of origin of a textile article. See HRL
085299, May 10, 1990. In this instance, the Office of Laboratories and Scientific
Services has determined that all of the fabric samples were
printed, but none of the fabric samples was dyed. In accordance
with 19 CFR 12.130(e), the processing of the fabric by Kapo in
Singapore does not change its country of origin. The country of
origin of the fabric is the country where the fabrics were either
woven or knit not where they were processed.
HOLDING:
Kapo's processing of the sample fabrics in Singapore is not
a substantial transformation and does not change the country of
origin. The country of origin of the sample fabric for marking
and quota purposes is the country where the fabric is woven or
knit.
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(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 the country of origin. Accordingly, 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