CLA-2 CO:R:C:G 086971 JS
William Zeitler
Bell, Boyd & Lloyd
1615 L Street, N.W.
Suite 1200
Washington, D.C.
20036-5601
RE: Cotton Surgical Towels
Dear Mr. Zeitler:
This is in response to your letter of April 9, 1990, on
behalf of Parkins, Inc., requesting a country of origin
determination for cotton surgical towels to be imported from
Mexico.
FACTS:
The samples at issue consist of five fabric pieces which
represent various stages of construction in the making of the
subject towels. Each piece is made of a 100 percent woven
cotton fabric which is dyed blue.
The first sample is a length of fabric measuring
approximately 27 by 37 inches. The second and third pieces are
stated to be towels in their intermediate level of production,
i.e. "after cutting" and "after cutting with partial hemming."
The "after cutting" sample measures approximately 18 by 62 inches
and is identical in appearance to the first sample except with
respect to its size. The fourth and fifth samples are identical
pieces labeled "finished", which are distinguished from the other
samples by their hemmed and stitched edges.
You state that the fabric rolls which are used to make these
surgical towels are produced in Country A. The fabric is then
intended for shipment to Mexico via Country B. In Mexico, the
fabric will then be cut and sewn into towels, and washed, dried,
inspected, folded, and packaged. The finished product is sold
to various hospitals and medical facilities throughout the United
States.
ISSUE:
Whether cutting, hemming and sewing in Mexico of fabric
woven in Country A constitutes a substantial manufacturing or
processing transformation such that the completed surgical towels
would be considered a manufacture of Mexico for purposes of 19
CFR 12.130.
LAW AND ANALYSIS:
The country of origin of textiles and textile products is
determined by the application of Section 12.130 of the Customs
Regulations. In determining the country of origin of textile
and textile products which consist of materials produced or
derived from, or processed in, more than one country, the
imported article is considered to be a product of the country in
which the last substantial transformation took place. A
substantial transformation of a textile or textile product is
said to occur if a commodity undergoes a transformation by means
of substantial manufacturing or processing into a new and
different article of commerce.
Section 12.130 (d) establishes criteria for determining
whether an article has been substantially transformed. However,
the criteria set forth in 19 CFR 12.130(d) are not exhaustive;
one or any combination of these criteria may be determinative,
and additional factors may be considered.
In accordance with 19 CFR 12.130(d)(2), the following
factors are to be considered in determining whether merchandise
has been subjected to substantial manufacturing or processing
operations: the physical change in the material or article, the
time involved in the manufacturing or processing operations, the
complexity of the operations, the level or degree of skill and/or
technology required, and the value added to the article.
Under 19 CFR 12.130(e)(v), an article is a product of a
particular country if it has undergone in that country a
substantial assembly by sewing and/or tailoring of all cut pieces
of apparel articles which have been cut from fabric in another
foreign country, into a completed garment.
According to T.D. 85-38 (19 Cust. Bull. 58, 70; 50 FR 8714),
the final document rule establishing 19 CFR 12.130:
[T]he assembly of all the cut pieces of a garment usually is
a substantial manufacturing process that results in an
article with a different name, character or use than the
cut pieces. It should be noted that not all assembly
operations of cut garment pieces will amount to a
substantial transformation of those pieces. Where either
less than a complete assembly of all cut pieces of a garment
is performed in one country, or the assembly is a relatively
simple one, then Customs will rule on the particular factual
situations as they arise, utilizing the criteria in section
12.130(d).
Based on the information provided, the hemming and sewing of the
edges of fabric to be used as toweling does not require any
tailoring.
Rather, the facts indicate that the finishing of the cut
parts is a simple assembly operation which does not involve a
high degree of skill and workmanship. The fibers which make up
the material for the towels at issue are woven and rolled and
ready for cutting in Country A. This process, in comparison to
the simple cutting, hemming and sewing operation to take place in
Mexico, is more complex and valuable than the latter.
We also note that the weaving and related operations in
Country A comprise the same percentage of value added as do the
cutting and related operations performed in Mexico. However,
absent any additional data concerning the complexity of the
cutting and sewing operations vis a vis the weaving operation,
Customs deems weaving to be the more complex of the two.
Since there is nothing to suggest that the hemming of the
fabric is in any degree a complex operation as regards, for
example, the time or level of skill required, or that the
assembly requires anything more than a simple folding over of the
edges by machine stitching, it is Customs view that the towels
have not undergone a substantial manufacturing or processing
operation. See also, HRL 082747 (February 23, 1988), concerning
the country of origin of jeans. Consequently, the towels have
not been substantially transformed in Mexico. Wherever the
fabric is produced is therefore the country of origin pursuant to
19 CFR 12.130 for quota and country of origin marking purposes.
HOLDING:
The assembly operations performed in Mexico do not
constitute a substantial transformation as required by 19 CFR
12.130. The country of origin for the merchandise at issue is
Country A, and a Country A visa must accompany the goods when
shipped to another country.
Sincerely,
John Durant, Director
Commercial Operations Division