HQ 0087521 - Country of origin for quota purposes for a shower curtain - United States International Trade Commision Rulings

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HQ 087521

November 15, 1990

CLA-2 CO:R:C:G 087521 CC

CATEGORY: CLASSIFICATION

Mr. George Lin
Director
Asgard Design, Inc.
P.O. Box 24
Dover, N.J. 07802-0024

RE: Country of origin for quota purposes for a shower curtain

Dear Mr. Lin:

This letter is in response to your inquiry of July 9, 1990, requesting a country of origin determination for a shower curtain. Samples were submitted for examination.

FACTS:

According to your submissions, knitted and dyed fabric from Taiwan will be sent on rolls to Hong Kong, where the fabric will be cut to length and hemmed at the top and bottom. Also in Hong Kong, the fabric is slit in several places near the top where hooks can be placed. The finished shower curtain measures approximately 72 inches by 72 inches.

You state that it takes approximately 15 to 30 minutes to make a shower curtain. The value added to the article in Hong Kong is approximately 25 to 30 percent of the original value.

ISSUE:

What is the country of origin for quota purposes for the submitted merchandise?

LAW AND ANALYSIS:

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

Based on your submissions, we do not believe that the operations performed in Hong Kong to create the submitted shower curtain are very complex. In addition, the level of skill and the value added in Hong Kong to create the curtain are relatively low. The processing operations done in Hong Kong consist primarily of cutting fabric to length and hemming the top and bottom of the curtain. We do not believe the processing operations used in Hong Kong to create this article are substantial. Thus the last substantial transformation of the submitted merchandise occurs in Taiwan, where the fabric is made.

HOLDING:

The country of origin for quota purposes for the merchandise at issue is Taiwan.

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 section states that a ruling letter is issued on the assumption that all of 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

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