CLA-2 CO:R:C:T 952212 SK
Steven Katz
Boltex Textiles, Inc.
34 Walker Street
New York, N.Y. 10013
RE: Country of origin determination for flat sheets; Section
12.130 of the Customs Regulations (19 CFR 12.130); finishing
operations and cutting to length do not constitute a
substantial manufacturing operation; no substantial
transformation in Sri Lanka.
Dear Mr. Katz:
This is in reply to your letter of July 10, 1992, in which
you request a country of origin determination for sheets and
pillow cases. Only a flat sheet was submitted for examination.
FACTS:
Although you request that Customs issue a country of origin
determination for sheets and pillow cases, you have only supplied
us with a sample of a flat sheet. Furthermore, you did not
describe in sufficient detail the processing operations that each
article of bedlinen undergoes; you merely submitted a copy of the
bill and the declaration of origin on a shipment of sheets and
pillow cases. You state that, "the greige goods [have] been made
in Pakistan and the scouring/bleaching/stentering/starch[ing]/
cutting/stitching/grading/packing etc. is done in Sri Lanka."
On the basis of the information submitted to this office, we
are only able to issue you a country of origin determination for
the flat sheet. We are able to make this determination because
the sample you submitted has selvaged edges which indicates that
it was only cut to length in Sri Lanka and that it was already in
sheet width at the time of its export from Pakistan. This fact,
combined with a description of the finishing operations performed
in Sri Lanka, provides Customs with sufficient information to
make a country of origin determination for the flat sheets.
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LAW AND ANALYSIS:
Country of origin determinations are made pursuant to
Section 12.130 of the Customs Regulations (19 CFR 12.130).
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;
(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;
(ii) The time involved in the manufacturing or processing;
(iii) The complexity of the manufacturing or processing;
(iv) The level or degree of skill and/or technology
required in the manufacturing or processing
operations;
(v) The value added to the article or material;
[emphasis added]
Section 12.130(e)(1) provides that an article or material
usually will be a product of a particular foreign territory or
country, or insular possession of the United States, when, prior
to importation into the United States, it has undergone in that
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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;
(ii) Spinning fibers into yarn;
(iii) Weaving, knitting or otherwise forming fabric;
(iv) Cutting of fabric into parts and the assembly of those
parts into the completed article; or
(v) substantial assembly by sewing and/or tailoring of
all cut pieces ...
[emphasis added]
Conversely, Section 12.130(e)(2) provides that, "[A]n
article or material usually will not be considered to be a
product of a particular foreign territory or country, or insular
possession of the U.S. by virtue of merely having undergone any
of the following:
(i) Simple combining operations, labeling, pressing,
cleaning or dry cleaning, or packaging operations, or
any combination thereof;
(ii) Cutting to length or width and hemming or overlocking
fabrics which are readily identifiable as being
intended for a particular commercial use;
(iii) Trimming and/or joining together by sewing, looping,
linking, or other means of attaching otherwise
completed knit-to-shape component parts even when
accompanied by other processes (washing, drying,
mending, etc.) normally incident to the assembly
process.
(iv) One or more finishing operations on yarns, fabrics, or
other textile articles, such as showerproofing,
superwashing, bleaching, decating, fulling, shrinking,
mercerizing, or similar operations; or
(v) Dyeing and/or printing of fabrics or yarns.
[emphasis added]
In the instant case, the fabric undergoes assorted finishing
operations in Sri Lanka. These operations, alone, do not
constitute a substantial manufacturing process by mandate of
Section 12.130(e)(2)(iv). Nor is the mere cutting to length of
fabric a substantial manufacturing process as set forth in
Section 12.130(e)(2)(ii). These two operations are not
significant enough in terms of the amount of time they require,
the skill and/or technology necessitated, or the value they
impart to the merchandise to be deemed substantial manufacturing
processes for purposes of conferring country of origin.
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The two operations, taken in their entirety, also fail to
constitute a substantial manufacturing process. As the
performance of finishing operations is not a substantial
manufacturing process, the additional steps of merely cutting the
fabric in a single direction and hemming two sides do not impart
the requisite amount of complexity. Accordingly, as per Section
12.130(1)(iii), the country of origin of the article at issue is
where the fabric was woven: Pakistan.
HOLDING:
The flat sheet is a product of Pakistan.
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 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