CLA-2 CO:R:C:T 950780 CC

Mustafa Al Wazzan
Chairman
National Textiles Company
P.O. Box 25186
13112 Safat, Kuwait

RE: Country of origin of bed sheets and pillow cases

Dear Mr. Al Wazzan:

This letter is in response to your inquiry for country of origin determinations of bed sheets and pillow cases. Samples were submitted for examination.

FACTS:

You have requested country of origin determinations for four articles: two pillow cases, one flat bed sheet, and one fitted bed sheet. This merchandise is composed of woven bleached white fabric. You state that each article is made of a blend of 52 percent polyester and 48 percent cotton fabric.

One pillow case measures 20 inches by 32 inches. The other one, designated by you as a "pillow case with flap," measures 20 inches by 30 inches. Both the flat sheet and fitted sheet measure 64 inches by 96 inches.

You state that the processing to make the finished sheets and pillow cases is similar. According to your submissions, you purchase unprocessed greige fabric in rolls from various countries. In Kuwait the rolls of fabric are inspected before undergoing further processing. The fabric is desized and washed, which takes approximately 60 minutes. The fabric is scoured and shrunk, which takes approximately 90 minutes, and then bleached, which takes approximately 90 minutes. Dyeing with "vat colors or reactive colors" is done on a jigger and takes approximately 210 to 360 minutes. The fabric is dried on a cylinder dryer or stenter before being sized and finished. Cutting to shape and sewing the fabric are performed to create the finished sheets and pillow cases. The goods are inspected and packed before being shipped.

ISSUE:

What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

For country of origin purposes, Section 12.130 of the Customs Regulations (19 CFR 12.130) is applicable to the merchandise at issue. Section 12.130(b) of the Customs Regulations provides that a textile product that is processed in more than one country or territory shall 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.

Section 12.130(d) of the Customs Regulations sets forth criteria in determining whether a substantial transformation of a textile product has taken place. This regulation states that these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered.

Section 12.130(d)(1) states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:

(i) Commercial designation or identity, (ii) Fundamental character or (iii) Commercial use.

Section 12.130(d)(2) of the Customs Regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

Section 12.130(e)(1) of the Customs Regulations provides the following:

An article or material usually will be a product of a particular foreign territory or country, or insular possession of the U.S., when it has undergone prior to importation into the U.S. in that foreign territory or country, or insular possession any of the following:

(i) 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.

The Customs Service has consistently held that in order to comply with Section 12.130(e)(1) of the Customs Regulations, a fabric must be both dyed and printed, as well as being subjected to the other required processing. See Headquarters Ruling Letter (HRL) 089230 of May 10, 1991. The fabric at issue is not both dyed and printed and does not meet the requirements of Section 12.130(e)(1).

The cutting and sewing of the fabric to make the flat bed sheets are not complex operations and do not require a high degree of skill or technology. This conclusion is consistent with prior rulings concerning the country of origin of bed sheets. (See, e.g., HRL 089230 and HRL 086523 of April 25, 1990.) Consequently, the flat bed sheet is not substantially transformed in Kuwait, and the country of origin for this article is the country in which the fabric is formed.

The fitted bed sheet undergoes additional processing following the cutting of the fabric to size and pattern in that it must be cut at the corners and elastic must be sewn into the article so that the corners will fit securely over a mattress. These processes take more time and skill, and are more complex, then cutting and hemming in straight lines used in making flat bed sheets. Therefore, consistent with HRL 733180 of December 13, 1990, we conclude that the fitted sheet undergoes substantial manufacturing and processing operations in Kuwait. Consequently, the country of origin of this article is Kuwait.

In Belcrest Linens v. United States, 741 F.2d 1368 (1984), the court ruled on the country of origin of certain pillow cases. In that case bolts of fabric were woven in China and stenciled with an embroidery design, cutting marks, and a scalloped edge, and embroidered on the embroidery design. The fabric was shipped to Hong Kong where it was cut, pieces were scalloped and then sewn with decorative stitching, and the sides were sewn together. The court held that these pillow cases were substantially transformed in Hong Kong and therefore were products of Hong Kong for country of origin purposes. In addition, in HRL 086523 a pillow case made from fabric formed in one country and sent to a second country for cutting and hemming to produce the finished merchandise was found to be a product of the second country for country of origin purposes. Therefore, consistent with the Belcrest Linens decision and HRL 086523, the pillow cases at issue have been substantially transformed in Kuwait and are products of Kuwait for country of origin purposes. HOLDING:

The country of origin of the fitted bed sheet and pillow cases is Kuwait. The country of origin of the flat bed sheet is the country in which the fabric is woven.

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 177.9(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. 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