HQ 0952070 - Country of origin of flat sheets with capping, piping, and ruffles; classifiable in Heading 6302. - United States International Trade Commision Rulings

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HQ 952070

September 24, 1992

CLA-2 CO:R:C:T 952070 CAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 6302.21.2030; 6302.21.1030

Mr. Joseph A. Gleicher
Poly-Commodity Corporation
175 Great Neck Road
Great Neck Plaza, NY 11021

RE: Country of origin of flat sheets with capping, piping, and ruffles; classifiable in Heading 6302.

Dear Mr. Gleicher:

This letter is in response to your inquiry of May 18, 1992, requesting a country of origin determination of flat sheets. Because we take issue with the applicable tariff classification you listed in your request, we will also issue a tariff classification ruling. Three samples were submitted for examination.

FACTS:

Woven fabric that is 100 percent cotton will be manufactured, bleached, brushed, and printed in Pakistan. The rolls of fabric will then be shipped to Thailand, where they will be cut and hemmed into finished flat sheets. Also in Thailand, an additional band of contrasting fabric will be sewn to the sheets' top edge forming a seam. The first sample has capping sewn along the top edge of the seam. The second sample has solid color piping inserted into the seam of the top edge. The third sample has two overlapping ruffles sewn to the top edge. The exposed edge of each ruffle is hemmed. The side edge of one ruffle is hemmed, while the side edge of the other ruffle is capped with a piece of printed fabric.

ISSUES:

I. What is the country of origin for the articles in question?

II. What is the applicable tariff classification for the articles in question?
LAW AND ANALYSIS:

I. Country of Origin

Country of origin determinations for textile products are subject to Section 12.130, Customs Regulations (19 CFR 12.130). Section 12.130 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), Customs Regulations, sets forth criteria for determining whether a substantial transformation of a textile product has taken place. This regulation states 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), Customs Regulations, 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), 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

(ii) The time involved in the manufacturing or processing

(iii) The complexity of the manufacturing or processing

(iv) The level or degree of skill

(v) The value added to the article or material

Section 12.130(e) further provides in pertinent part:

(1) An article or material usually will be a product of a particular foreign territory or country,...when it has undergone prior to the importation into the U.S. in that foreign territory or country...any of the following:

(i) Dying 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.

When applying the above criteria to the merchandise in question, the fabric will not be substantially transformed in Thailand. The processing in Thailand involves cutting, hemming, and sewing a band of contrasting fabric to the top edge of flat sheets, forming an unfinished seam, and sewing either capping, piping, or ruffles over the unfinished seam. This processing does not amount to the complex operation requirements referred to in Section 12.130(d)(2). This is consistent with prior Customs rulings which determined that minor processing (e.g. cutting and hemming) of flat bed sheets does not constitute a substantial transformation within the meaning of Section 12.130(d)(2). See Headquarters Ruling Letter (HRL) 089230 of May 10, 1991 and HRL 733180 of December 13, 1990. Consequently, the country of origin for the instant merchandise is Pakistan.

II. Tariff Classification

Classification of goods under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes, taken in order. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's.

Heading 6302, HTSUSA, provides for bed linen, table linen, toilet linen and kitchen linen. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN), although not legally binding, are the official interpretation of the tariff at the international level, state that bed linen includes sheets, pillow cases, bolster cases, eiderdown cases, and mattress covers. The instant merchandise is instantly recognizable as a sheet, which is specifically provided for in the EN. Therefore, the flat sheets are classifiable in Heading 6302.

HOLDING:

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

Based on the foregoing, the flat sheet with capping is classifiable under subheading 6302.21.2030, HTSUSA, which provides for bed linen...without edging, trimming etc. The rate of duty is 7.6 percent ad valorem, and the textile restraint category is 361. The flat sheets with piping or ruffles are classifiable under subheading 6302.21.1030, HTSUSA, which provides for bed linen...containing any embroidery, lace, braid, edging, trimming, piping etc. The rate of duty is 23.8 percent ad valorem, and the textile restraint category is 361.

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).

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.

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.

Sincerely,

John Durant, Director
Commercial Rulings Division

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