HQ 953630

May 27, 1993

CLA-2 CO:R:C:T 953630 SK

CATEGORY: Classification

David Hu

Shen Huei International Corp.

No. 22 Al Kuo E. Rd. - 14th floor

Taipei, Taiwan

Republic of China

RE: Country of origin determination for flat sheets; Section

12.130 of the Customs Regulations (19 CFR 12.130); bleaching,

cutting and hemming do not constitute a substantial

manufacturing operation; no substantial transformation in

Taiwan; country of origin is the Philippines.

Dear Mr. Hu:

This is in reply to your letter of March 16, 1993, in which

you request a country of origin determination for flat sheets.

A sample was submitted for examination.

FACTS:

The woven flat sheet at issue is constructed from a fibre

blend of 55 percent cotton/ 45 percent polyester. The fabric is

woven in the Philippines and then sent to Taiwan where it is

bleached, cut, hemmed and packaged for final destination in the

United States.

The sample you submitted has selvaged edges which indicates

that it was only cut to length in Taiwan and that it was already

in sheet width at the time of its export from the Philippines.

LAW AND ANALYSIS:

Country of origin determinations are made pursuant to

Section 12.130 of the Customs Regulations (19 CFR 12.130).

Section 12.130(b) of the Customs Regulations 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

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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;

\(iii\) 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;

\(ii\) The time involved in the manufacturing or processing;

\(iii\) The complexity of the manufacturing or processing;

\(iv\) The level or degree of skill and/or technology

required in the manufacturing or processing

operations;

\(v\) The value added to the article or material;

\[emphasis added\]

Section 12.130(e)(1) provides that an article or material

usually will be a product of a particular foreign territory or

country, or insular possession of the United States, when, prior

to importation into the United States, it has undergone 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;

\(ii\) Spinning fibers into yarn;

\(iii\) Weaving, knitting or otherwise forming fabric;

\(iv\) Cutting of fabric into parts and the assembly of those

parts into the completed article; or

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\(v\) substantial assembly by sewing and/or tailoring of

all cut pieces \...

\[emphasis added\]

Conversely, Section 12.130(e)(2) provides that, \"\[A\]n

article or material usually will not be considered to be a

product of a particular foreign territory or country, or insular

possession of the U.S. by virtue of merely having undergone any

of the following:

\(i\) Simple combining operations, labeling, pressing,

cleaning or dry cleaning, or packaging operations, or

any combination thereof;

\(ii\) Cutting to length or width and hemming or overlocking

fabrics which are readily identifiable as being

intended for a particular commercial use;

\(iii\) Trimming and/or joining together by sewing, looping,

linking, or other means of attaching otherwise

completed knit-to-shape component parts even when

accompanied by other processes (washing, drying,

mending, etc.) normally incident to the assembly

process.

\(iv\) One or more finishing operations on yarns, fabrics, or

other textile articles, such as showerproofing,

superwashing, bleaching, decating, fulling, shrinking,

mercerizing, or similar operations; or

\(v\) Dyeing and/or printing of fabrics or yarns.

\[emphasis added\]

In the instant case, the flat sheet undergoes bleaching,

cutting to length, hemming and packaging in Taiwan. These

operations do not constitute a substantial manufacturing process

by mandate of Section 12.130(e). The mere cutting to length of

fabric is not a substantial manufacturing process by mandate of

Section 12.130(e)(2)(ii). Similarly, packaging is not a

substantial process. See Section 12.130(e)(2)(i). The bleaching

of fabric, cutting in a single direction, hemming on two sides

and packaging do not impart the requisite complexity necessary

for purposes of conferring country of origin. Accordingly, as

per Section 12.130(1)(iii), the country of origin of the article

at issue is where the fabric was woven: the Philippines.

HOLDING:

The flat sheet is a product of the Philippines.

The holding set forth above applies only to the specific

factual situation and merchandise identified in the ruling

request. This position is clearly set forth in section

177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1). This

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section states that a ruling letter is issued on the assumption

that all the information furnished in connection with the ruling

request and incorporated in the ruling letter, either directly,

by reference, or by implication, is accurate and complete in

every material respect. Should it subsequently be determined

that the information furnished is not complete and does not

comply with 19 CFR 177.9(b)(1), the ruling will be subject to

modification or revocation. In the event there is a change in

the facts previously furnished, this may affect the determination

of country of origin. Accordingly, it is recommended that a new

ruling request be submitted in accordance with section 177.2,

Customs Regulations (19 CFR 177.2).

Sincerely,

John Durant, Director