HQ 0088532 - Country of origin of collapsible hats - United States International Trade Commision Rulings

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HQ 088532

April 25, 1991

CLA-2 CO:R:C:T 088532 CC

CATEGORY: CLASSIFICATION

Mr. Edward Feder
Office Manager
A. Burghart Shipping Co., Inc.
Hemisphere Center
Newark, NJ 07114

RE: Country of origin of collapsible hats

Dear Mr. Feder:

This letter is in response to your inquiry of December 19, 1990, on behalf of Yama Batik, requesting a country of origin determination for collapsible hats. Samples were submitted for examination.

FACTS:

The submitted samples are collapsible hats, one for ladies and one for girls, that are made of 100 percent cotton fabric. Both hats have a stainless steel spring ring sewn into the outer edge of the brim. According to your submissions, the hats will be manufactured in China and forwarded through Hong Kong to Indonesia. In Indonesia they will be further processed by batiking, a traditional process of applying color to an existing fabric.

ISSUE:

What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations (19 CFR 12.130) applies to country of origin determinations of textile products for duty, quota, and marking purposes. 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 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 or
(iii) Commercial use.

Section 12.130(d)(2) 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.

Section 12.130(e)(2) of the Customs Regulations states that an 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:

(v) Dyeing and/or printing of yarns.

From the information you have submitted, we believe that the merchandise at issue falls within 12.130(e)(2)(v). Therefore the last substantial transformation occurs in China, and the country of origin is China.

You have also requested information concerning the marking requirements for importation. The question has been referred to our Value and Marking Branch and will be responded to in a separate letter.

HOLDING:

The country of origin for the merchandise at issue is China.

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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