CLA-2 CO:R:C:T 953677 HP
Mr. Allan Gordon
President
Performance Trading Inc.
520 South Lafayette Park Place
Suite 200
Los Angeles, CA 90057
RE: HRL 086665 revoked. HRL 087138 revoked. HRL 952703
revoked. Diapers.
Dear Mr. Gordon:
This is in response to your letter of March 31, 1993,
AP11308, in which you requested that we confirm the effectiveness
of previous ruling letters issued to you. Those ruling letters
concerned the country of origin determination of diapers,
produced from fabric created in the People's Republic of China.
After reviewing those rulings, we have determined that they were
issued in error.
FACTS:
The merchandise at issue consists of children's diapers
produced from 100% woven Chinese fabric. In HRL 086665 of March
23, 1990, we ruled that the cutting and folding operations taking
place on that fabric substantially transformed the Chinese fabric
into diapers of either Zimbabwe or Mozambique. In HRL 087138 of
June 5, 1990, we essentially extended this analysis to include
the countries of lesotho and Namibia. In HRL 952703 of November
2, 1992, we informed you that the above-cited rulings were still
in effect, and that you were "free to cite [them] as authority in
the disposition of transactions involving the same
circumstances."
On or about March 24, 1993, the District Director,
Charleston, South Carolina, detained 7,680 dozen diapers you were
attempting to import under the above-cited rulings. Following a
line of recent country of origin of diaper decisions issued to
other parties, the District Director was of the opinion that your
diapers were constructed of fabric intended for use as diapers.
On March 29, 1993, you forwarded to this office samples of the
diapers detained in Charleston. In your letter of the same date,
you stated that "these are the same diapers which we submitted to
your office ref. our Letter AP5412 of March 8, 1990." As we
noted above, your letter of March 8, 1990, resulted in our
issuance of HRL 086665.
We have examined the Charleston diaper samples. They are
constructed of fabric composed of a series of double woven
sections separated by single woven sections, forming pockets
throughout the width of the cloth. The weave type varies as the
fabric alternates between single and double weave
ISSUE:
Whether the diapers at issue in the above-cited HRLs are
considered to be products of "Country 2" for quota/visa purposes?
LAW AND ANALYSIS:
Customs has long held that producing diapers from plain
cotton fabric suitable for multiple uses is considered a
substantial transformation when the manufacturing and processing
operations include, inter alia, cutting to length and width or
length alone, complex folding to create the diaper's unique
multi-layer middle portion, hemming and/or overlocking the edges,
and finishing and packaging. HRL 950849 of March 24, 1992; HRL
953078 of January 25, 1993. Contra HRL 087950 of January 9,
1991; HRL 088321 of March 7, 1991 (merely cutting fabric into
squares and hemming insufficient to constitute substantial
manufacturing process). In the instant case, however, the
alternating single and double woven sections of the cloth
facilitate the cutting, folding and sewing of the fabric into a
diaper. The double woven sections are manufactured in this way
to increase absorbency and prevent leakage throughout the diaper.
The alternating single woven sections provide a more dense and
solid base for sewing the diaper.
It is our opinion that the weave structure of the fabric
confirms the fact that the material is intended for use as
diapers. The changing of the weaves is performed at additional
cost and for the specific purpose of creating markers for
folding. As a result, no substantial transformation takes place.
The diapers are therefore considered a product of China. HRLs
086665, 087138 and 952703 are revoked.
HOLDING:
As a result of the foregoing, the diapers at issue in HRLs
086665, 087138 and 952703 are products of China.
In order to insure uniformity and eliminate uncertainty, we
are revoking HRL 086665 of March 23, 1990, HRL 087138 of June 5,
1990, and HRL 952703 of November 2, 1992, pursuant to 19 C.F.R.
177.9(d)(1), to reflect the above country of origin
determination, effective with the date of this letter.
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division