HQ 0950789 - Classification of surgical towels; country of origin; 6307, HTSUSA; cutting, sewing and finishing of fabric in Singapore does not constitute substantial transformation under 19 CFR 12.130 - United States International Trade Commision Rulings

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HQ 950789

March 24, 1992

CLA-2 CO:R:C:T 950789 SK

CATEGORY: CLASSIFICATION

TARIFF NO.: 6307.90.8610

Vinod Shantilof
Wajilam Exports (Singapore) Private Limited 63 Robinson Road
P.O. Box 632
Singapore 9012

RE: Classification of surgical towels; country of origin; 6307, HTSUSA; cutting, sewing and finishing of fabric in Singapore does not constitute substantial transformation under 19 CFR 12.130

Dear Mr. Shantilof:

This is in response to your letter of November 18, 1991, requesting a binding ruling addressing the tariff classification, country of origin and quota/visa status of surgical towels.

FACTS:

The goods at issue are surgical towels made of textile fabric. The rolls of fabric are manufactured in India or Pakistan and are further processed in Singapore. In Singapore the fabric is inspected, cut to size and each piece is then stitched on all four edges. The towels are then folded and packed into bags for export to the United States.

ISSUE:

What is the proper classification of the surgical towels under the Harmonized Tariff Schedule of the United States Annotated

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that the classification of articles is determined according to the terms of the headings and any relative section or chapter notes.

Heading 6307, HTSUSA, provides for other made up articles. Customs has previously determined that surgical towels are classifiable within this section of the Nomenclature. See Headquarters Ruling Letters (HRL's) 087639 (10/26/90), HRL 087477 (8/30/90) and HRL 086132 (2/22/90).

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

Your attention is directed to Section 12.130(e) of the Customs Regulations which sets forth criteria which aid in determining whether an article has been subjected to certain manufacturing or processing operations which serve to substantially transform an article into a new and different article of commerce. These are as follows:

(i) Spinning fibers into yarn;

(ii) Weaving, knitting or otherwise forming fabric;

(iii) Cutting of fabric into parts and the assembly of those parts into the completed article; or

(iv) Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles ... . [emphasis added]

The surgical towels at issue are "formed" in India or Pakistan. None of the manufacturing processes set forth above take place in Singapore. The fabric is cut in Singapore, and the pieces are then stitched on all four sides, but this in itself is insufficient to warrant a finding that the articles have been substantially transformed. See Headquarters Ruling Letter (HRL) 086132, dated February 22, 1990, in which Customs ruled that surgical towels made from Hong Kong origin fabric, and exported to Honduras for cutting, washing, seaming, folding and packaging,
were not of Hong Kong origin because those operations were deemed insufficient "to perfect a change in the country of origin". See also HRL 087477 (8/30/90); HRL 087639 (10/26/90); HRL 088245

Customs Regulations 12.130(e)(2) 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 ... the following:

(ii) Cutting to length or width and hemming or overlocking fabrics ... ;

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

As mandated by the above regulation, the cutting and sewing process which takes place in Singapore does not support a finding that the articles at issue have been substantially transformed. Accordingly, the surgical towels are deemed products of India or Pakistan as that is where the fabric is formed and the articles last undergo a substantial transformation.

HOLDING:

The subject merchandise is classifiable under subheading 6307.90.8610, HTSUSA, which provides for "other made-up articles, including dress patterns: other: other: surgical towels ... . The applicable rate of duty is 7% ad valorem and the textile category is 369.

The country of origin of the subject merchandise is India or Pakistan.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that your client check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is updated weekly and is available at your local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification), and the restraint (quota/visa) categories, your client should contact its local Customs office prior to importing the merchandise to determine the current applicability of any import restraints or requirements.

Sincerely,

John Durant, Director

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