CLA-2 CO:R:C:T 953078 HP
Mr. Philip D. Anderson
Empire Trading Company Ltd.
6489 Rinings Road
Syracuse, NY 13206
RE: Country of origin of diapers.
Dear Mr. Anderson:
This is in reply to your letter of December 14, 1992. That
letter concerned the tariff classification, under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA), of
diapers, produced in China and Jamaica. In addition, you
requested a country of origin determination of those diapers.
FACTS:
The merchandise at issue consists of 12 inches x 16 inches
and 14 inches x 21 inches infants 100% gauze cotton woven
diapers, constructed by Meigao Jamaica Company Ltd.. The diapers
are known as 4-6-4, whereas they are six layers in the middle and
four layers on the sides. They are hemmed and bartacked.
You describe the manufacturing process as follows:
100% cotton fabric, single ply (with no lines
of demarcation) in roll form would be
imported into Jamaica from a third country,
usually China, India or Pakistan, or fabric
would be bought from Jamaica.
Details of the diaper manufacturing process
- Cloth is received in 900 foot bales by
various widths of 30 to 59 inches.
- Cloth is laid out on a 48 foot long
table, straightened and flattened out.
- A pattern, depending on the size and
construction of diapers is placed on the
cloth and outlined in washable marking
pen. It is then cut lengthwise.
- Two layers of cloth are used per diaper.
- A bundle of 10 dozen double pieces of
cloth are rolled up and delivered to a
storage shelf for distribution to sewing
station operators who fold the cloth
into shape and sew the two center panel
stitches only.
- Goods are then looked at by a Q.C.
inspector, moved to the Chief inspectors
section and after approval they are
delivered to a second sewing station
which trims and hems the top and bottom.
- Goods are inspected again. If approved
they are moved to a third sewing station
for bar tacking of all four corners.
* * *
- Goods are then moved to trimming and
final inspection.
- The diapers are now moved to another
section for folding and packaging in one
dozen lots. They are then moved to a
pressing machine for packing in 50 dozen
bundles.
ISSUE:
How are the diapers correctly classified under the HTSUSA?
What is the diapers~ country of origin for quota, visa and
marking purposes?
LAW AND ANALYSIS:
Classification
The General Rules of Interpretation (GRIs) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part, that such "classification shall be
determined according to the terms of the headings . . . ."
Heading 6209, HTSUSA, provides for babies~ woven garments and
clothing accessories. The diapers at issue are appropriately
classified herein.
Country of Origin
In your submission, you stated that the cloth from which the
diapers are to be manufactured from may be woven in Jamaica. If
this is the case, and the diapers are constructed in Jamaica from
Jamaican cloth, the country of origin is clearly Jamaica.
Assuming, however, that the cloth will be imported into Jamaica
from a third country, the following analysis is applicable.
Textile commodities produced in more than one foreign
country are subject to the country of origin requirements
delineated in section 12.130 of the Customs Regulations (19
C.F.R. 12.130). These regulations provide that:
. . . a textile product . . . which consists
of materials produced or derived from, or
processed in, more than one foreign . . .
country shall be a product of that foreign .
. . country where it last underwent a
substantial transformation.
12.130(b). A textile product undergoes a substantial
transformation when it is ". . . transformed by means of
substantial manufacturing or processing operations into a new
and different article of commerce."
Section 12.130 of the regulations outlines the criteria used
to determine the country of origin for textiles and textile
products. Specifically, this provision of the regulations is
considered in determining whether a textile product has undergone
substantial manufacturing or processing operations, and what
constitutes a new and different article of commerce. The factors
considered are not exhaustive. In fact, "one or any combination
of criteria may be determinative, and additional factors may be
considered." In determining whether merchandise has undergone
substantial manufacturing or processing operations, we consider
the (1) physical change in the material or the article; (2) time
involved; (3) complexity of the operations; (4) level or degree
of skill and/or technology required; and (5) value added to the
article in each country.
Customs has long held that producing diapers from plain
cotton fabric suitable for multiple uses is considered a
substantial transformation when the manufacturing and processing
operations include, inter alia, cutting to length and width,
complex folding to create the diaper~s unique multi-layer middle
portion, hemming and/or overlocking the edges, and finishing and
packaging. HRL 086665 of March 23, 1990; HRL 086779 of April 25,
1990; HRL 087585 of August 13, 1990; HRL 088395 of April 1, 1991
(rev~d on other grounds); HRL 950849 of March 24, 1992. This is
true even where the fabric is cut only to length. HRL 087138 of
June 5, 1990; HRL 087949 of January 8, 1991. Contra HRL 088321
of March 7, 1991 (mere cutting of fabric into squares and hemming
insufficient to constitute substantial manufacturing process).
Since your manufacturing process conforms to the above listing,
and since the cloth as it is imported into Jamaica contains no
folding lines or lines of demarcation formed by any means (e.g.,
by a change in the weaving process or by imprinting), it is our
opinion that the Meigao manufacturing operations performed in
Jamaica substantially transform the third country fabric into
Jamaican diapers.
HOLDING:
As a result of the foregoing, the instant merchandise is
classified as woven cotton diapers of Jamaica, classified under
subheading 6209.20.5040, HTSUSA, textile category 239.
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 negotiations 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 issuance
of the U.S. Customs Service, which is updated weekly and is
available 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, you should contact your local
Customs office prior to importing the merchandise to determine
the current status of any import restraints or requirements.
The holding in this ruling applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in 177.9(b)(1),
Customs Regulations (19 C.F.R. 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 C.F.R. 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. In such a case, it is recommended that a
new ruling request be submitted in accordance with 177.2,
Customs Regulations (19 C.F.R. 177.2).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division