CLA-2 CO:R:C:T 957565 PR
Mr. Joseph A. Gleicher
Poly-Commodity Corporation
175 Great Neck Road
Great Neck Plaza, New York 11021
RE: Reconsideration and Modification of HQ 953378 Concerning the
Country of origin of Sheets
Dear Mr. Gleicher:
This is in reference to Customs Headquarters Ruling Letter
(HQ) 953378, issued February 19, 1993, addressed to you,
concerning the country of origin of sheets. We have reviewed
that ruling and determined that it is partially in error. This
modifies that ruling. Pursuant to section 625(c)(1), Tariff Act
of 1930 (19 U.S.C. 1625(c)(1)), as amended by section 623 of
Title VI (Customs Modernization) of the North American Free Trade
Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057,
2186 (1993) (hereinafter referred to as section 625), notice of
the proposed modification of HQ 953378 was published February 8,
1995, in the CUSTOMS BULLETIN, Volume 29, Number 6.
FACTS:
The goods this ruling is concerned with are described in HQ
953378 as flat bed sheets manufactured as follows: Woven fabric
manufactured in Pakistan is shipped to Thailand where it is cut
to length and width (we assume that means that each sheet is cut
on four sides) and hemmed. On one sample a row of piping was
inserted along the top edge while a second sample had capping
applied to the top edge.
ISSUE:
The issue presented is which country, Pakistan or Thailand,
is the country of origin of the subject sheets.
-2-
LAW AND ANALYSIS:
Section 12.130, Customs Regulations (19 CFR 12,130)
provides, in pertinent part, that a textile or textile product
which consists of materials processed in more than one foreign
country shall be a product of the country where it last underwent
a substantial transformation. A textile or 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.
Customs has consistently ruled that the cutting of fabric on
all four sides, and hemming, did not, by itself, involve
sufficient processing to constitute "substantial manufacturing or
processing operations." See the most recent ruling, HQ 956030,
of November, 22, 1994. To rise to that level, there must be
processing in addition to cutting and hemming. Adding capping or
piping to that processing will not suffice. Piping takes little
expense and practically no time. Capping usually is used in
place of hemming to finish an edge. Both are done for minor
decorative purposes which have no relation to the utility or
manner of use of the sheet. Capping and piping are
distinguishable from adding four inch borders (or extra pieces of
fabric) which add length, or from substantial ruffles which
create a major visual impact and, to a degree, change the nature
(and possibly the use} of the sheet.
HOLDING:
The country of origin of the flat sheets that had piping
and/or capping added to the fourth side is Pakistan. HQ 953378,
dated February 19, 1993, is hereby modified to reflect this
holding. In accordance with section 625, this ruling will become
effective 60 days after its publication in the CUSTOMS BULLETIN.
Sections 177.10(b) and 177.10(c), Customs Regulations (19 CFR
177.10(b) and 177.10(c)) are not applicable to rulings or
decisions published pursuant to section 625. Accordingly, the
publication of this ruling neither establishes a uniform practice
nor constitutes a change of practice or position by the Customs
Service.
Sincerely,
John Durant, Director
Commercial Rulings Division