CLA-2 CO:R:C:G 086523 CB
Mr. Bryce Haynes
The Bibb Company
P. O. Box 4207
Macon, Georgia 31208
RE: Country of Origin of bed linen
Dear Mr. Haynes:
This is in response to your letter of January 17, 1990,
requesting a country of origin classification under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), for duty and marking purposes on bed linen.
FACTS:
The merchandise at issue consists of a three-piece woven bed
sheet set which includes one flat sheet, one fitted sheet, and
one pillowcase. The merchandise is constructed of a fiber blend
of either 60% polyester/40% cotton, or 80% cotton/20% polyester.
According to the information you have provided, the fabric
is woven in Pakistan and then shipped to Dubai. In Dubai the
fabric will be cut into various lengths for twin, full and queen
size and hemmed.
ISSUE:
Whether the processes taking place in Dubai are sufficient
to make Dubai the country of origin for duty and marking
purposes?
LAW AND ANALYSIS:
Country of Origin
Section 12.130(b), Customs Regulations, provides that a
textile product processed in more than one country or territory
shall be a product of that country or territory where it last
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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.
In addition, Section 12.130(d), Customs Regulations,
provides that a new and different article of commerce will
usually result from manufacturing or processing operations if
there is a change in (1) commercial identity, (2) fundamental
character, or (3) commercial use. That provision also states
that in determining whether merchandise has been subjected to
substantial manufacturing or processing operations, we will
consider the physical change in the material or article, the time
involved, the complexity of the operation, the level or degree of
skill and/or technology involved, and the value added to the
article in each country or territory. Any one or a combination
of these factors may be determinative and other factors may also
be considered.
Our regulations further provide that a fabric usually will
be a product of the country where it was woven, knitted or
otherwise formed into fabric, or where it was dyed and printed
and accompanied by two or more other finishing operations. With
regard to the subject merchandise, it is Customs position that
Pakistan remains the country of origin for the sheets. The
weaving, dyeing and printing processes all take part in Pakistan
and are sufficient to satisfy the country of origin requirements
set forth in the regulations. The operations performed in Dubai,
i.e. cutting to length and hemming, do not constitute a
substantial transformation for country of origin purposes.
Determination of the country of origin for the pillowcases
is governed by the guidelines set forth in Belcrest Linens v.
United States (741 F.2d 1368, Fed.Cir. 1984). The Belcrest court
held that bolts of fabric which were woven in China and stenciled
with an embroidery design, cutting marks, and a scalloped edge
before being shipped to Hong Kong where the fabric was cut, the
edges were embroidered, the sides sewn together and packaged were
pillowcases manufactured in Hong Kong for country of origin
purposes. Therefore, in applying the Belcrest rationale to the
subject merchandise, Dubai is the country of origin for the
pillowcases.
Marking
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304), provides, in general, that all articles of foreign origin
imported into the U.S. shall be marked in a conspicuous place as
legibly, indelibly and permanently as the nature of the article
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(or container) will permit, in such a manner as to indicate to
the ultimate purchaser in the U.S. the English name of the
country of origin of the article. Part 134, Customs Regulations
(19 CFR Part 134), implements the country of origin marking
requirements and exceptions of 19 U.S.C. 1304.
In this case, the components of the bed linen package are
products of two different countries. The sheets are a product of
Pakistan and the pillowcases are a product of Dubai. The bed
linen is imported and sold in a retail package. The subject
package must indicate the country of origin for both individual
items in order to satisfy the statutory marking requirements.
HOLDING:
The subject sheets are a product of Pakistan and the subject
pillowcases are a product of Dubai for country of origin
purposes.
Sincerely,
John Durant, Director
Commercial Rulings Division