CLA-2 CO:R:C:T 952450 CC
Mustafa Al Wazzan
Chairman
National Textiles Company
P.O. Box 25186
13112 Safat, Kuwait
RE: Reconsideration of HRL 950780; country of origin of flat bed
sheets
Dear Mr. Al Wazzan:
This letter is in response to your request of August 17,
1992, for reconsideration of the country of origin of flat sheets
determined in Headquarters Ruling Letter (HRL) 950780.
FACTS:
In HRL 950780 of August 14, 1992, we ruled on the country of
origin of fitted and flat bed sheets and pillow cases. That
ruling concerned greige fabric from various countries that is
processed, cut, and sewn in Kuwait to make bed sheets and pillow
cases. We held that the country of origin for the fitted sheets
and pillow cases is Kuwait; the country of origin of the flat
sheets is the country in which the fabric is woven.
You have requested that we reconsider the country of origin
determination for the flat sheets. You believe that the woven
greige fabric undergoes a substantial transformation in Kuwait by
the desizing, scouring, shrinking, bleaching, optical brightening
and dyeing; you state the following in support of your claim:
The greige cloth has about 9 percent of the impurities
associated with cotton cellulose fiber before it is scoured to
produce "clean fabric." The fabric undergoes optical brightening
and dyeing in a process where the florescent pigments are dyed
into the fabric which absorbs the ultraviolet rays, making the
fabric bright. This entire process takes 60 minutes after
bleaching.
You state, "such bleached and optically brightened fabric
has got very different characteristics than the grey fabric in
factors such as appearance, color, tensile strength, fluidity
absorbency, absorption of light, weight, and so on. The
transformation of the fabric is both physical and chemical." In
addition, you state that to produce the flat sheets requires
"correct lay length, uniform straight cutting, taking care of bow
and skew and hemming both edges on industrial sewing machines,
folding, and packing."
ISSUE:
What is the country of origin of the flat sheets at issue?
LAW AND ANALYSIS:
Country of origin determinations for textile products are
subject to Section 12.130 of the Customs Regulations (19 CFR
12.130). Section 12.130(b) 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) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place. This regulation states that
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) 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) 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 as a
result of the manufacturing or processing operations in each
foreign territory or country, or insular possession of the
U.S.
(ii) The time involved in the manufacturing or processing
operations in each foreign territory or country, or insular
possession of the U.S.
(iii) The complexity of the manufacturing or processing
operations in each foreign territory or country, or insular
possession of the U.S.
(iv) The level or degree of skill and/or technology required
in the manufacturing or processing operations in each
foreign territory or country, or insular possession of the
U.S.
(v) The value added to the article or material in each
foreign territory or country, or insular possession of the
U.S., compared to its value when imported into the U.S.
Section 12.130(e)(1) of the Customs Regulations provides the
following:
An article or material usually will be a product of
a particular foreign territory or country, or insular
possession of the U.S., when it has undergone prior to
importation into the U.S. in that foreign territory or
country, or insular possession any of the following:
(i) Dyeing of fabric and printing when accompanied by
two or more of the following finishing operations:
bleaching, shrinking, fulling, napping, decating,
permanent stiffening, weighting, permanent
embossing, or moireing.
We have carefully reviewed HRL 950780 and find no basis for
modifying that decision. The operations you describe to produce
the flat sheets in Kuwait do not meet the requirements of 19 CFR
12.130(e)(1). In addition, the time involved, complexity, and
level of degree or skill involved in making the flat sheets in
Kuwait is not sufficient to constitute substantial manufacturing
or processing operations. Consequently, the country of origin
for the flat sheets is the country in which the fabric is formed.
You also inquired in your request for reconsideration
whether the country of origin of fitted sheets and pillow cases
of HRL 950780 would remain Kuwait regardless of changes in the
blend composition of the polyester and cotton. Yes, the country
of origin remains Kuwait regardless of this blend composition.
HOLDING:
The country of origin of the flat bed sheets at issue is the
country in which the fabric is woven. HRL 950780 of August 14,
1992 is affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division