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HQ 951292


June 19, 1992

CLA-2 CO:R:C:T 951292 CC

CATEGORY: CLASSIFICATION

TARIFF NO.: 6307.10.2005

Jack Seymour
Director of Purchasing
American Uniform Co.
P.O. Box 2130
Cleveland, TN 37320-2130

RE: Classification and country of origin of shop towels; classifiable in Heading 6307

Dear Mr. Seymour:

This letter is in response to your inquiries, requesting the tariff classification and country of origin of shop towels. Samples were submitted for examination.

FACTS:

According to your submissions, 100 percent cotton, woven, greige, osnaburg fabric that is 95 centimeters wide will be made in Pakistan. The fabric will be sent to Jamaica, where it will be cut into squares 45 centimeters in length on each side. Each square will have one selvage edge. The remaining three edges will be finished with an overlock stitch. The finished shop towels will then be imported into the United States.

ISSUE:

What is the classification of the merchandise at issue under the Harmonized Tariff Schedule of the United States Annotated

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

LAW AND ANALYSIS:

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

Heading 6307, HTSUSA, provides for other made up articles. Subheading 6307.10.2005, HTSUSA, provides for cotton shop towels dedicated for use in garages, filling stations and machine shops. The merchandise at issue is made of plain woven coarse fabric of nonpile construction. Osnaburg fabric provides a low-grade, low- cost, effective wiping cloth for garages and machine shop purposes. It is the class or kind of article known as shop towels. Therefore it is classifiable under subheading 6307.10.2005, HTSUSA.

Country of origin determinations for textile products are subject to Section 12.130 of the Customs Regulations (19 CFR 12.130). Section 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. 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) 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.

Cutting and hemming the fabric are not substantial manufacturing or processing operations that create a new and different article in Jamaica. The last substantial transformation occurs in Pakistan, where the fabric is made. Consequently the country of origin for this merchandise is Pakistan.

HOLDING:

The merchandise at issue is classified under subheading 6307.10.2005, HTSUSA, which provides for other made up articles, other, shop towels dedicated for use in garages, filling stations and machine shops, of cotton. The rate of duty is 10.5 percent ad valorem, and the textile category is 369.

The country of origin of the merchandise at issue is Pakistan.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

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 you 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 available for inspection at your local Customs office.

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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