HQ 0087676 - Family Dome Tent; country of origin - United States International Trade Commision Rulings

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HQ 087676

January 13, 1991

CLA-2 CO:R:C:G JS 087676

CATEGORY: CLASSIFICATION

Mr. John W. Whitaker
O'Neill & Whitaker, Inc.
1809 Baltimore Avenue
Kansas City, Missouri
64108

RE: Family Dome Tent; country of origin

Dear Mr. Whitaker:

This is in reference to your letter of July 10, 1990, requesting, on behalf of Avid Outdoor, Inc., the country of origin of a family dome tent.

FACTS:

The merchandise at issue is a family tent, model 2030, which measures 12 feet by 10 feet by 6 feet. It is composed of 56 percent nylon material, 2 percent polyethylene, 4 percent mesh, and 8 percent parts and accessories, all of which are sourced in Taiwan, and 24 percent poles (manufactured in the United States). In Taiwan, yarn is woven into fabric which is cut, dyed and coated there; these materials are then shipped to mainland China to be sewn (2 percent of total cost) and packed (4 percent of total cost) for shipment to the United States.

ISSUE:

Whether the fabric at issue is substantially transformed by the stated processing so as to be considered a product of China.

LAW AND ANALYSIS:

The country of origin of textiles and textile products is determined by the application of Section 12.130 of the Customs Regulations. In determining the country of origin of textile or textile products which consist of materials produced or derived from, or processed in, more than one country, the imported article is considered to be a product of the country in which the
last substantial transformation took place. A product has 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. A new and different article of commerce will usually result when there is a change in commercial designation or identity, fundamental character or commercial use.

Section 12.130 (d) establishes criteria for determining whether an article has been substantially transformed. However, the criteria set forth in 19 CFR 12.130(d) are not exhaustive; one or any combination of these criteria may be determinative, and additional factors may be considered.

In accordance with 19 CFR 12.130(d)(2), the following factors are to be considered in determining whether merchandise has been subjected to substantial manufacturing or processing operations: the physical change in the material or article, the time involved in the manufacturing or processing operations, the complexity of the operations, the level or degree of skill and/or technology required, and the value added to the article.

Although the sewing of the article and packing occurs in China, the weaving of the raw material in Taiwan, as well as the cutting, coating and dyeing operations performed there, are deemed to be the factors which contribute most to the creation of the final product. We also note that the value added of the sewing process in China constitutes only 2 percent, and the packing only 4 percent, of the total cost of the finished product.

The Chinese manufacturing processes do not, therefore, indicate that assembly requires anything more than a number of simple operations which do not constitute substantial manufacturing or processing operations as required by 19 CFR 12.130.

HOLDING:

The country of origin for the merchandise at issue is Taiwan, and a Taiwanese visa must accompany the goods.

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 Customs Regulations 19 CFR 177.9 (b)(1), which states that a ruling letter is issued on the assumption that all information furnished in connection with the ruling request and incorporated therein, either directly, by reference, or by implication, is
accurate and complete in every material respect. Should it be subsequently 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 that there is a change in the facts previously furnished, the country of origin determination may be affected. In such case, 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
Commercial Operations Division

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