HQ 0952450 - Reconsideration of HRL 950780; country of origin of flat bed sheets - United States International Trade Commision Rulings

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HQ 952450

December 15, 1992

CLA-2 CO:R:C:T 952450 CC

CATEGORY: CLASSIFICATION

Mustafa Al Wazzan
Chairman
National Textiles Company
P.O. Box 25186
13112 Safat, Kuwait

RE: Reconsideration of HRL 950780; country of origin of flat bed sheets

Dear Mr. Al Wazzan:

This letter is in response to your request of August 17, 1992, for reconsideration of the country of origin of flat sheets determined in Headquarters Ruling Letter (HRL) 950780.

FACTS:

In HRL 950780 of August 14, 1992, we ruled on the country of origin of fitted and flat bed sheets and pillow cases. That ruling concerned greige fabric from various countries that is processed, cut, and sewn in Kuwait to make bed sheets and pillow cases. We held that the country of origin for the fitted sheets and pillow cases is Kuwait; the country of origin of the flat sheets is the country in which the fabric is woven.

You have requested that we reconsider the country of origin determination for the flat sheets. You believe that the woven greige fabric undergoes a substantial transformation in Kuwait by the desizing, scouring, shrinking, bleaching, optical brightening and dyeing; you state the following in support of your claim:

The greige cloth has about 9 percent of the impurities associated with cotton cellulose fiber before it is scoured to produce "clean fabric." The fabric undergoes optical brightening and dyeing in a process where the florescent pigments are dyed into the fabric which absorbs the ultraviolet rays, making the fabric bright. This entire process takes 60 minutes after bleaching.

You state, "such bleached and optically brightened fabric has got very different characteristics than the grey fabric in factors such as appearance, color, tensile strength, fluidity absorbency, absorption of light, weight, and so on. The transformation of the fabric is both physical and chemical." In addition, you state that to produce the flat sheets requires "correct lay length, uniform straight cutting, taking care of bow and skew and hemming both edges on industrial sewing machines, folding, and packing."

ISSUE:

What is the country of origin of the flat sheets at issue?

LAW AND ANALYSIS:

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.

Section 12.130(e)(1) of the Customs Regulations provides the following:

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

(i) 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.

We have carefully reviewed HRL 950780 and find no basis for modifying that decision. The operations you describe to produce the flat sheets in Kuwait do not meet the requirements of 19 CFR 12.130(e)(1). In addition, the time involved, complexity, and level of degree or skill involved in making the flat sheets in Kuwait is not sufficient to constitute substantial manufacturing or processing operations. Consequently, the country of origin for the flat sheets is the country in which the fabric is formed.

You also inquired in your request for reconsideration whether the country of origin of fitted sheets and pillow cases of HRL 950780 would remain Kuwait regardless of changes in the blend composition of the polyester and cotton. Yes, the country of origin remains Kuwait regardless of this blend composition.

HOLDING:

The country of origin of the flat bed sheets at issue is the country in which the fabric is woven. HRL 950780 of August 14, 1992 is affirmed.

Sincerely,

John Durant, Director

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