CLA-2 CO:R:C:T 952070 CAB
Mr. Joseph A. Gleicher
Poly-Commodity Corporation
175 Great Neck Road
Great Neck Plaza, NY 11021
RE: Country of origin of flat sheets with capping, piping, and
ruffles; classifiable in Heading 6302.
Dear Mr. Gleicher:
This letter is in response to your inquiry of May 18, 1992,
requesting a country of origin determination of flat sheets.
Because we take issue with the applicable tariff classification
you listed in your request, we will also issue a tariff
classification ruling. Three samples were submitted for
examination.
FACTS:
Woven fabric that is 100 percent cotton will be
manufactured, bleached, brushed, and printed in Pakistan. The
rolls of fabric will then be shipped to Thailand, where they will
be cut and hemmed into finished flat sheets. Also in Thailand,
an additional band of contrasting fabric will be sewn to the
sheets' top edge forming a seam. The first sample has capping
sewn along the top edge of the seam. The second sample has solid
color piping inserted into the seam of the top edge. The third
sample has two overlapping ruffles sewn to the top edge. The
exposed edge of each ruffle is hemmed. The side edge of one
ruffle is hemmed, while the side edge of the other ruffle is
capped with a piece of printed fabric.
ISSUES:
I. What is the country of origin for the articles in question?
II. What is the applicable tariff classification for the
articles in question?
LAW AND ANALYSIS:
I. Country of Origin
Country of origin determinations for textile products are
subject to Section 12.130, Customs Regulations (19 CFR 12.130).
Section 12.130 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), Customs Regulations, sets forth criteria
for determining whether a substantial transformation of a
textile product has taken place. This regulation states 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), Customs Regulations, 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), 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
(ii) The time involved in the manufacturing or processing
(iii) The complexity of the manufacturing or processing
(iv) The level or degree of skill
(v) The value added to the article or material
Section 12.130(e) further provides in pertinent part:
(1) An article or material usually will be a product of a particular foreign territory or country,...when it has
undergone prior to the importation into the U.S. in that
foreign territory or country...any of the following:
* * *
(i) Dying 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.
When applying the above criteria to the merchandise in
question, the fabric will not be substantially transformed in
Thailand. The processing in Thailand involves cutting, hemming,
and sewing a band of contrasting fabric to the top edge of flat
sheets, forming an unfinished seam, and sewing either capping,
piping, or ruffles over the unfinished seam. This processing
does not amount to the complex operation requirements referred to
in Section 12.130(d)(2). This is consistent with prior Customs
rulings which determined that minor processing (e.g. cutting and
hemming) of flat bed sheets does not constitute a substantial
transformation within the meaning of Section 12.130(d)(2). See
Headquarters Ruling Letter (HRL) 089230 of May 10, 1991 and HRL
733180 of December 13, 1990. Consequently, the country of origin
for the instant merchandise is Pakistan.
II. Tariff Classification
Classification of goods under the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA) is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes, taken in
order. Merchandise that cannot be classified in accordance with
GRI 1 is to be classified in accordance with subsequent GRI's.
Heading 6302, HTSUSA, provides for bed linen, table linen,
toilet linen and kitchen linen. The Explanatory Notes to the
Harmonized Commodity Description and Coding System (EN), although
not legally binding, are the official interpretation of the
tariff at the international level, state that bed linen includes
sheets, pillow cases, bolster cases, eiderdown cases, and
mattress covers. The instant merchandise is instantly
recognizable as a sheet, which is specifically provided for in
the EN. Therefore, the flat sheets are classifiable in Heading
6302.
HOLDING:
The country of origin of the merchandise at issue is
Pakistan.
Based on the foregoing, the flat sheet with capping is
classifiable under subheading 6302.21.2030, HTSUSA, which
provides for bed linen...without edging, trimming etc. The rate
of duty is 7.6 percent ad valorem, and the textile restraint
category is 361. The flat sheets with piping or ruffles are
classifiable under subheading 6302.21.1030, HTSUSA, which
provides for bed linen...containing any embroidery, lace, braid,
edging, trimming, piping etc. The rate of duty is 23.8 percent
ad valorem, and the textile restraint category is 361.
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).
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 applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division