CLA-2 CO:R:C:T 954872 SK
Jacqueline M. Sierra
L.S. Quilting, Inc.
P.O. Box 362385
San Juan, Puerto Rico 00936-2385
RE: Country of origin determination; 19 CFR 12.130; bed linen;
for both flat and fitted sheets cutting to length and width,
hemming and some other additional processing necessary in order
for a substantial transformation to take place; HRL's 733180
(12/13/90); 952225 (12/8/92); 952212 (4/5/93); 953630 (5/27/93);
HRL 953750 (6/21/93); Belcrest Linen v. U.S., 741 F.2d 1368
(1984).
Dear Ms. Sierra:
This is in reply to your letter of July 23, 1993, requesting
a country of origin determination for a bed linen set. Two
versions of a printed 50 percent polyester/ 50 percent cotton
woven full size bed set were submitted to this office for
examination. One version of the set has been submitted in its
finished state, the other set consists of the cut unassembled
components.
A response to your inquiry regarding eligibility for a
partial duty exemption under subheading 9802.00.80, Harmonized
Tariff Schedule of the United States Annotated (HTSUSA), is
forthcoming from the Headquarters Special Classification branch
and will be sent to you under separate cover.
FACTS:
The bed linen set at issue consists of a flat sheet, fitted
sheet and two pillow cases. The set will also be made in queen
size and twin size (with only one pillow case in the twin size
set). Woven printed fabric is imported from Pakistan. You do
not specify whether the fabric is manufactured in Pakistan, but
for purposes of this ruling, Customs will assume that to be the
case. The fabric is sent to Puerto Rico where it is cut into
component parts. The components are then sent to the Dominican
Republic along with U.S. thread, elastic and packing materials
for assembly.
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The fabric for the pillowcases is cut on all four sides in
Puerto Rico. In the Dominican Republic, these pieces are then
sewn together on three sides and hemmed on the fourth.
The flat sheet components consist of an approximately 11
inch by 82 inch rectangle cut on all four sides and an 89-1/2
inch by 81-1/2 inch rectangle that has been cut on two sides.
The top and bottom edges of the flat sheet have selvaged edges.
In the Dominican Republic the smaller piece is sewn to the top
edge of the flat sheet in a manner similar to capping and the two
sides are hemmed.
The fitted sheet is cut on two sides and has a selvaged top
and bottom edge. The fitted sheet is assembled in the Dominican
Republic by folding and stitching the four corners. Elastic is
sewn to the top and bottom edge and the two sides are finished
with a merrow machine.
There is a difference between the finished fitted sheet
sample and the component sample submitted to this office. The
component sample has a selvage on the top and bottom while the
finished sample does not. The component sample matches the
description in your ruling request and will be used as the basis
for our country of origin determination.
ISSUE:
What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
Section 12.130 of the Customs Regulations (19 CFR 12.130) is
applicable to the merchandise at issue. 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 meets a two-
pronged test: 1) the article must have been transformed by means
of substantial manufacturing or processing operations; and 2) a
new and different article of commerce must have been created.
Section 12.130(d) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place. 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.
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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;
Customs has previously dealt with the issue as to what
manufacturing operations performed on bed linen will and will not
be considered "substantial manufacturing operations" for purposes
of conferring country of origin status under Section 12.130 of
the Federal Regulations. In Headquarters Ruling Letter (HRL)
733180, dated December 13, 1990, this office determined that
fabric for a fitted sheet that had been cut to both length and
width, hemmed and fitted with elastic at each of the four corners
in country B was deemed to have undergone a substantial
manufacturing operation. The flat sheet in HRL 733180 had also
been cut to length and width and hemmed in country B, but had not
undergone any additional processing and the sum total of the
operations performed on the flat sheet were not deemed to be
substantial in nature. In HRL 952225, dated December 8, 1992,
Customs held that where a flat sheet had been cut to length and
width, hemmed, and decorative ruffles had been affixed by sewing
in country B, a substantial transformation had occurred. In HRL
952212, dated April 5, 1993, Customs determined that a flat sheet
with two selvaged edges (indicating it had been cut in only one
direction) did not undergo a substantial manufacturing process in
the country where the cutting and sewing took place. In that
ruling Customs stated, "... the mere cutting to length of a
fabric [is not] a substantial manufacturing process as set forth
in Section 12.130(e)(2)(ii)." This position was reiterated in
HRL 953630, dated May 27, 1993, and in HRL 953750, dated June 21,
1993, where this office held that "[M]erely 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 [whether flat or fitted] has been substantially
transformed, the minimum processing required is cutting the
fabric to length and width."
In essence, Customs mandates that in order for flat and
fitted sheets to be deemed to have undergone a substantial
manufacturing process in a particular country or foreign
territory, the fabric must undergo, at a minimum, the cutting to
length and
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width of fabric, hemming and yet another processing step.
Whether the processing operations performed on the sheet fabric,
in addition to the cutting to length and width and hemming,
constitute a substantial manufacturing operation which creates a
new and different article of commerce will be analyzed by Customs
on a case by case basis. In order to dispel any ambiguity as to
what constitutes "cutting to length and width", Customs defines
this term as cutting on all four sides of the fabric so as to
create a component with no selvaged edges.
In the instant case, the cutting of the fabric for the
sheets and pillow cases is performed in Puerto Rico. As set
forth in 12.130(e)(2)(ii), the cutting of fabric to length or
width (both the fitted and the flat sheet samples have two
selvaged edges), will not confer country of origin status to an
article. Accordingly, the articles of bed linen at issue are not
products of Puerto Rico.
The assembly operations that take place in the Dominican
Republic (i.e., the affixation by sewing of the top panel of the
flat sheet, the affixation of the elastic to the fitted sheet,
and the sewing on three sides of the pillow cases and hemming of
the fourth side) are, by themselves, simple assembly operations
and do not entail the requisite degree of complexity or skill to
constitute substantial manufacturing operations for purposes of
conferring country of origin status in the Dominican Republic.
We note that the manufacturing scenario in the instant case
is to be distinguished from that presented in Belcrest Linens v.
United States, 741 F.2d 1368 (Fed. Cir. 1984). In Belcrest,
bolts of fabric were woven in China and stenciled with an
embroidery design, cutting marks, and a scalloped edge, and then
embroidered on the embroidery design. The fabric was shipped to
Hong Kong where it was cut and the three sides of the pillow
cases were sewn together. The court held that these pillow cases
were substantially transformed in Hong Kong and therefore were
products of Hong Kong for country of origin purposes. Based on
Belcrest, this office issued HRL 086523, dated April 25, 1990, in
which Customs determined that pillow cases, which were both cut
and sewn together in a single country, were a product of that
country. In the case before us, however, the pillow cases do not
undergo both cutting and sewing in any one country; rather, the
cutting takes place in Puerto Rico and the sewing in the
Dominican Republic. Therefore, Belcrest Linen is not
precedential in this instance and no substantial transformation
is deemed to have occurred in either Puerto Rico or the Dominican
Republic.
The country of origin of the flat and fitted sheets and the
pillow cases is where these articles last underwent a substantial
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transformation. As the fabric for the sheets was formed in
Pakistan, this is the country of origin of the flat and fitted
sheets and pillow cases pursuant to 19 CFR 12.130(e)(1)(iii)
which states that "an article or material usually will be a
product of a ... country ... when it has undergone prior to
importation into the U.S. ... weaving, knitting or otherwise
forming fabric."
HOLDING:
The country of origin for the flat and fitted sheets and the
pillow cases is 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