CLA-2 CO:R:C:T 953750 CAB
Darryl Golden
Norman Krieger, Inc.
P.O. Box 92599
Los Angeles, CA 90009
RE: Country of origin of fitted sheets and pillowcases; Section
12.130, Customs Regulations; Classification of fitted sheets and
pillowcases; Heading 6303, HTSUSA
Dear Mr. Golden:
This ruling is in response to your inquiry of February 25,
1993, on behalf of Atlas Textile Co., Inc., requesting a tariff
classification under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA) and a country of origin determination
for fitted bed sheets and pillowcases. The merchandise will be
entered through the Port of Los Angeles. Samples were submitted
for examination.
FACTS:
The merchandise at issue consists of two pillowcases that
are marked Atlas 1 and Atlas 2. There are also two fitted bed
sheets labeled Atlas 3 and Atlas 4. The goods will be
constructed of 100 percent cotton woven fabric, or a woven blend
of 60 percent cotton and 40 percent polyester, or a woven blend
of 55 percent polyester and 45 percent cotton fabric.
The fabric used for the merchandise in question is
manufactured in Pakistan. The fabric is then sent to Dubai for
further processing. In Dubai the fabric used to make the
pillowcases is cut to size on four sides, sewn together on two
sides, hemmed, and packaged for export. Fabric that is used to
construct the fitted sheets is cut to width and hemmed. Elastic
is then fitted and sewn along the four corners of the fabric.
The fitted sheets are not cut to length as there is a selvage
edge on the top and bottom of the sheets.
ISSUES:
I. What is the proper tariff classification for the for the
merchandise in question?
II. What is the country of origin for the merchandise in
question?
LAW AND ANALYSIS:
TARIFF CLASSIFICATION
Classification of goods under the 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. Merchandise
that cannot be classified in accordance with GRI 1 is to be
classified in accordance with subsequent GRI's, taken in order.
Heading 6302, HTSUSA, is the provision 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 nomenclature at the international level. The EN to Heading
6302, HTSUSA, state, in relevant part:
These articles are usually made of cotton or flax, but
sometimes also of hemp, ramie or man-made fibres, etc.; they
are normally of a kind suitable for laundering. They
include:
(1) Bed linen, e.g., sheets, pillowcases, bolster cases,
eiderdown cases and mattress covers.
The merchandise at issue which is comprised of fitted sheets
and pillowcases are instantly recognizable as bed linen. As bed
linen is clearly provided for in Heading 6302, HTSUSA, and the
corresponding EN, the subject merchandise is classifiable under
Heading 6302, HTSUSA.
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 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 or material
When fabric is cut to length and width and hemmed in order
to construct a sheet, a new and different article of commerce is
created. However, in order for a substantial transformation to
result within the purview of Section 12.130, there must be
additional processing that is sufficiently complex so as to
constitute a substantial manufacturing operation. Merely cutting
fabric on two sides, hemming, and adding elastic is a simple
processing operation. When making a determination as to whether
fabric used to make sheets has been substantially transformed,
the minimum processing required is cutting the fabric to length
and width. After the fabric has been cut on four sides, Customs
assesses the additional processing and determines whether the
processing amounts to a substantial manufacturing operation.
In prior cases, Customs has evaluated the degree of skill,
value, and amount of time expended to manufacture sheets and made
substantial transformation determinations accordingly. In HRL
952909, dated April 12, 1993, Customs concluded that fabric that
had been cut to length and width, coupled with the additional
processing required to attach piping to flat sheets amounted to a
substantial manufacturing operation. In HRL 953477, dated May
18, 1993, Customs distinguished fitted sheets that had been cut
to length and width, and fitted sheets that had merely been cut
on two sides. Custom applied the criteria stipulated in Section
12.130 and concluded that merely cutting fabric to length,
hemming, and adding elastic to the corners did not amount to a
substantial manufacturing operation. Customs evaluated the
processing involved in manufacturing the fitted sheets that had
been cut to both length and width and decided that the processing
involved amounted to a substantial manufacturing operation. In
this instance, the material used to make the fitted sheets has
only been cut to width.
In light of prior Customs rulings, it is clear that the
processing involved in constructing the subject fitted sheets
does not amount to a substantial manufacturing operation within
the purview of Section 12.130. Consequently, the fitted sheets
are subject to their last substantial transformation in the
country in which the fabric was manufactured, Pakistan.
In 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 embroidery, 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 subject to its last substantial transformation in
Hong Kong. Thus, when applying the court's rationale to the
instant case, it appears that the fabric which will be cut and
sewn into pillowcases in Dubai undergoes its last substantial
transformation in that country.
HOLDING:
Based on the foregoing, the fitted sheets which will be
constructed of 100 percent woven cotton fabric or a woven blend
of 60 percent cotton and 40 percent polyester fabric will be
classifiable under subheading 6302.21.2040, HTSUSA, which
provides for cotton bed sheets. The applicable rate of duty is
7.6 percent ad valorem and the textile restraint category is 361.
The fitted sheets which will be constructed of 55 percent
polyester and 45 percent cotton fabric will be classifiable under
subheading 6302.22.2020, HTSUSA, which provides for sheets of
man-made fibers. The applicable rate of duty is 13 percent ad
valorem and the textile restraint category is 666.
The pillowcases which will be constructed of 100 percent
woven cotton fabric or a woven blend of 60 percent cotton and 40
percent polyester will be classifiable under subheading
6302.21.2020, HTSUSA, which provides for cotton pillowcases. The
applicable rate of duty is 7.6 percent ad valorem and the textile
restraint category is 360. The pillowcases which will be
constructed of 55 percent polyester and 45 percent cotton fabric
will be classifiable under subheading 6302.22.2010, HTSUSA, which
provides for pillowcases of man-made fibers. The applicable rate
of duty is 13 percent ad valorem and the textile restraint
category is 666.
The country of origin of the fitted sheets which are
described as Atlas 3 and 4 is Pakistan. The country of origin of
the pillowcases which are described as Atlas 1 and 2 is Dubai.
The 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 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 applicability of any import restraint requirements.
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 Durant, Director
Commercial Rulings Division