CLA-2 CO:R:C:T 952577 CAB
Mr. Allan Gordon
Performance Trading Inc.
520 So. Lafayette Park Place
Suite 200
Los Angeles, CA 90057
RE: Country of Origin of Flat sheets, Fitted sheets, and
Pillowcases
Dear Mr. Gordon:
This letter is in response to your inquiry of September 11,
1992, requesting a country of origin determination of flat
sheets, fitted sheets, and pillowcases.
FACTS:
Bleached white and printed piece goods are sent from China
to Mauritius. The merchandise is further manufactured as
follows:
Flat Sheets
Mauritius - The piece goods will be cut and hemmed at the
top and bottom, folded, labeled, packaged, and exported to the
United States.
Pillowcases
Mauritius - The piece goods will be cut to size on four
sides, folded, sewn together on both sides, hemmed, and packaged
for export to the United States.
Fitted Sheets
Mauritius - The piece goods will be cut and hemmed at the
top and bottom. Elastic will be fitted and sewn along the four
corners of the fabric.
ISSUE:
What is the country of origin for the merchandise in
question?
LAW AND ANALYSIS:
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 for
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 of material
Section 12.130(e)(1)(iv), Customs Regulations, states that a
textile article will usually be a product of a particular country
if the cutting of the fabric into parts and the assembly of those
parts in the completed article has occurred in that country.
However, 12.130(e)(2)(ii) states that a material will usually not
be considered to be a product of a particular foreign country by
virtue of merely having undergone cutting to length or width and
hemming or overlocking fabrics which are readily identifiable as
being intended for a particular commercial use.
Headquarters Ruling Letter (HRL) 952579 dated November 25,
1992, confronted the issue of where the last substantial
transformation occurred when the processing of the flat sheets
had occurred in three countries. Customs concluded that the last
substantial transformation occurred in Country "A" where the
fabric had been manufactured. And not in either Country "B"
where the fabric was bleached and printed, or Country "X" where
the fabric was brushed, shrunk, cut, and hemmed.
In HRL 086523 dated April 25, 1990, Customs determined that
bed sheets made out of material woven, dyed and printed in
Pakistan were considered to be products of Pakistan even though
the material was cut to length and hemmed in Dubai. The
processes performed in Dubai, i.e., cutting to length and
hemming, did not constitute a substantial transformation.
Pursuant to the requirements of Section 12.130, it does not
appear that any of the processing done to transform the piece
goods into flat sheets in Mauritius amounted to a substantial
transformation. This is in accord with the aforementioned
Customs rulings.
The processing necessary to convert piece goods into fitted
sheets is more complex than the processing required for flat
sheets. The fabric must be cut at the corners and elastic is
sewn into it so that the corners will fit over a mattress. This
requires additional cutting and stitching which is more complex
than merely sewing a straight hem. Thus, the piece goods made
into fitted sheets are substantially transformed in Mauritius.
When determining the country of origin for pillowcases,
Customs refers to Belcrest Linens v. United States, (741 F.2d
1368, Fed. Cir. 1984). The court held that a bolt of woven
fabric that was manufactured, stenciled with an embroidery
design, and imprinted with lines of demarcation in China prior to
being sent to Hong Kong where the fabric was cut, sewn into
pillowcases, and packaged was subjected to its last substantial
transformation in Hong Kong. Therefore, when applying the
court's rationale to the instant case, it appears that the piece
goods that are cut and sewn into pillow cases in Mauritius have
undergone a substantial transformation.
HOLDING:
Based on the foregoing, the country of origin of the flat
sheets is China. The country of origin of the fitted sheets and
the pillowcases is Mauritius.
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 A. Durant, Director
Commercial Rulings Division