CLA-2 CO:R:C:T 953630 SK
David Hu
Shen Huei International Corp.
No. 22 Al Kuo E. Rd. - 14th floor
Taipei, Taiwan
Republic of China
RE: Country of origin determination for flat sheets; Section
12.130 of the Customs Regulations (19 CFR 12.130); bleaching,
cutting and hemming do not constitute a substantial
manufacturing operation; no substantial transformation in
Taiwan; country of origin is the Philippines.
Dear Mr. Hu:
This is in reply to your letter of March 16, 1993, in which
you request a country of origin determination for flat sheets.
A sample was submitted for examination.
FACTS:
The woven flat sheet at issue is constructed from a fibre
blend of 55 percent cotton/ 45 percent polyester. The fabric is
woven in the Philippines and then sent to Taiwan where it is
bleached, cut, hemmed and packaged for final destination in the
United States.
The sample you submitted has selvaged edges which indicates
that it was only cut to length in Taiwan and that it was already
in sheet width at the time of its export from the Philippines.
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
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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
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
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(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 flat sheet undergoes bleaching,
cutting to length, hemming and packaging in Taiwan. These
operations do not constitute a substantial manufacturing process
by mandate of Section 12.130(e). The mere cutting to length of
fabric is not a substantial manufacturing process by mandate of
Section 12.130(e)(2)(ii). Similarly, packaging is not a
substantial process. See Section 12.130(e)(2)(i). The bleaching
of fabric, cutting in a single direction, hemming on two sides
and packaging do not impart the requisite complexity necessary
for purposes of conferring country of origin. Accordingly, as
per Section 12.130(1)(iii), the country of origin of the article
at issue is where the fabric was woven: the Philippines.
HOLDING:
The flat sheet is a product of the Philippines.
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
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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