CLA-2 CO:R:C:T 957566 PR
Mary Jo Muoio
Wolf D. Barth Co., Inc.
90 West Street
New York, New York 10006
RE: Reconsideration and Modification of HQ 955780 Concerning the
Country of origin of Sheets
Dear Ms. Muoio:
This is in reference to Customs Headquarters Ruling Letter
(HQ) 955780, issued May 17, 1994, by this office, addressed to
you on behalf of Ascot & Company, 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 955780 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
955780 as flat bed sheets manufactured as follows: Woven fabric
produced in Pakistan is shipped to Thailand where it is cut and
hemmed on four sides, and a row of piping is added.
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 piping to
that processing will not suffice. Piping takes little expense
and practically no time. It is done for minor decorative
purposes which have no relation to the utility or manner of use
of the sheet.
HOLDING:
The country of origin of the flat sheets that were cut and
hemmed on four sides and had piping added is Pakistan. HQ
955780, issued May 17, 1994, 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