HQ 0734262 - Country of origin marking for fabric, printing, bleaching, dyeing, substantial transformation, 19 CFR 12.130 - United States International Trade Commision Rulings

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HQ 734262

January 6, 1992

MAR-2-05 CO:R:C:V 734262

CATEGORY: MARKING

Tan Ghe Liang
Managing Director
Kapo Industries PTE. LTD.
531 Yishun Industrial Park A
Singapore 2776

RE: Country of origin marking for fabric, printing, bleaching, dyeing, substantial transformation, 19 CFR 12.130

Dear Mr. Liang:

This is in response to your letter dated June 26, 1991, requesting a ruling on the country origin marking requirements for fabric. Accompanying your letter were five samples of the fabric for our review.

FACTS:

The raw fabrics (griege fabrics) are made in Singapore or nearby countries. You state that in Singapore, the fabric is treated by bleaching, dyeing, printing, and resin finishing, including special coating of the fabric. You have provided an outline of the steps involved in processing the raw fabric into a finished printed fabric.

We have consulted with the Office of Laboratories & Scientific Services to determine what processing is done to each of the five sample fabrics. The Office of Laboratories & Scientific Services determined that the three knit fabrics, one with a pink background, one with a red background, and one with a black background were bleached and printed. The sample woven fabric with a blue background was bleached and printed. Finally, the knit fabric with a creme background was printed. It was also determined that none of the sample fabrics were dyed.

ISSUE:

What is the country of origin of the sample fabrics and printed in Singapore? LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

Section 12.130, Customs Regulations (19 CFR 12.130), sets forth the principles for making country of origin determinations for textile and textile products subject to section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854) ("section 204"). According to T.D. 90-17, published in the Federal Register on March 1, 1990, (55 FR 7303), the principles of country of origin for textiles and textile products contained in 19 CFR 12.130 are applicable to such merchandise for all purposes, including duty and marking.

Pursuant to 19 CFR 12.130, the standard of substantial transformation governs the determination of the country of origin where textiles and textile products are processed in more than one country. The country of origin of textile products is deemed to be that foreign territory, country, or insular possession where the article last underwent a substantial transformation. Substantial transformation is said to occur when the article has been transformed into a new and different article of commerce by means of substantial manufacturing or processing operations. In other words, for textiles governed by 19 CFR 12.130 there is a two part test for substantial transformation: 1) a new different article of commerce and 2) a substantial manufacturing or processing operation.

Section 12.130(e)(1)(i) provides that an article or material will be a product of a particular foreign country or territory when it has undergone prior to importation into the U.S. dyeing of fabric and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing. Section 12.130(e)(2)(v) indicates that an article or material usually will not be considered to be a product of a particular foreign territory or country where the only processing being done to the article is dyeing and/or printing of fabric. In other words, to have a change in the country of origin, the fabric must be both dyed and printed as well as being subjected two additional finishing processes. Performing only one of the two operations will not be enough to change the country of origin of a textile article. See HRL 085299, May 10, 1990. In this instance, the Office of Laboratories and Scientific Services has determined that all of the fabric samples were printed, but none of the fabric samples was dyed. In accordance with 19 CFR 12.130(e), the processing of the fabric by Kapo in Singapore does not change its country of origin. The country of origin of the fabric is the country where the fabrics were either woven or knit not where they were processed.

HOLDING:

Kapo's processing of the sample fabrics in Singapore is not a substantial transformation and does not change the country of origin. The country of origin of the sample fabric for marking and quota purposes is the country where the fabric is woven or knit.

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(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 the 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
Commercial Rulings Division

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