HQ 0953566 - Country of origin of fitted and flat sheets, and pillowcases; Section 12.130, Customs Regulations - United States International Trade Commision Rulings

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HQ 953566

June 21, 1993

CLA-2 CO:R:C:T 953566 CAB

CATEGORY: CLASSIFICATION

Mr. Sudhir Mehta
Textile Concepts
9 East Gate Road
Long Valley, NJ 07853

RE: Country of origin of fitted and flat sheets, and pillowcases; Section 12.130, Customs Regulations

Dear Mr. Mehta:

This letter is in response to your inquiry of February 2, 1993, requesting a country of origin determination for bed linen sets that consist of a flat sheet, fitted sheet, and pillowcases. The merchandise will be imported through the port of New York. Three sample sets were submitted for examination.

FACTS:

Two of the sample sets consist of a flat sheet, fitted sheet, and pillowcases which are all constructed of 100 percent woven cotton printed fabric. The printed fabric used to make the finished products is purchased in Pakistan. Since you fail to specify in your inquiry, Customs is assuming that the country in which the fabric was purchased is also the country where the fabric was manufactured. The printed fabric is either sent to Mexico or Guyana where it is cut to length, sewn into the finished product, and packed for export to the United States. The sample sheets contain selvage at the top and bottom edges. This fact indicates that the sheets have only been cut to width.

The other sample bed linen set at issue is comprised of a flat sheet, fitted sheet, and pillowcases which are all constructed of 100 percent woven cotton greige fabric. The greige fabric is purchased in Pakistan. The fabric is then sent to Bangladesh where it is bleached, printed, cut to length, sewn into the finished product, and packed for export to the United States. As stated above, the sample sheets have only been cut to width since there is a selvage edge at the top and bottom section of the sheets.

ISSUE:

What is the country of origin for the merchandise at issue?

LAW AND ANALYSIS:

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 for 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)(1) further provides, in pertinent part:

An article or material usually will be a product of 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) 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.

When making a determination as to whether fabric used to make sheets has been substantially transformed, the minimum processing required is cutting the fabric to length and width. After the fabric has been cut on four sides, Customs assesses the additional processing and makes a determination as to whether the additional processing amounts to a substantial manufacturing operation.

In prior cases, Customs has evaluated the degree of skill, value, and amount of time expended to manufacture sheets and made substantial transformation conclusions accordingly. In Headquarters Ruling Letter (HRL) 952909, dated April 12, 1993, Customs concluded that fabric that had been cut to length and width, coupled with the additional processing required to attach piping to flat sheets, amounted to a substantial manufacturing operation. In HRL 953477, dated May 18, 1993, Customs distinguished fitted sheets that had been cut to length and width, and fitted sheets that had merely been cut on two sides. Customs applied the criteria stipulated in Section 12.130 and concluded that merely cutting fabric to length, hemming, and adding elastic to the corners did not result in a substantial manufacturing operation. Customs evaluated the processing involved in manufacturing the fitted sheets that had been cut to both length and width and maintained that the processing involved amounted to a substantial manufacturing operation.

In this instance, the material used to create both the fitted and flat sheets has only been cut to width. Therefore, it is clear that the processing operations involved in constructing the subject fitted and flat sheets in Guyana or Mexico does not amount to the minimum processing necessary to result in a substantial manufacturing operation in accordance with Section 12.130. This analysis is consistent with the cited Customs rulings which require material to be cut to both length and width coupled with additional processing to result in a substantial manufacturing operation. Therefore the fitted and flat sheets underwent their last substantial transformation in the country in which the fabric was manufactured, Pakistan.

To comply with Section 12.130(e)(1)(i), a fabric must be both dyed and printed, as well as being subjected to the other required processing. See, HRL 089230, dated May 10, 1991, where the subject merchandise was greige fabric that had been produced in China, scoured, bleached, printed, and pre-shrunk in Hong Kong, and finally cut, hemmed, and packaged in the Philippines. Customs stated that none of the processing which the fabric was subjected to after it was formed in China resulted in a substantial transformation. In this case, the greige fabric used to make the fitted and flat sheets is not dyed and printed in addition to other processing in any single country. Since this type of processing is a requirement of Section 12.130(e)(1)(i), the fabric in question underwent its last substantial transformation in Pakistan.

In determining the country of origin for pillowcases, Customs refers to Belcrest Linens v. United States, 741 F.2d 1368, (Fed. Cir. 1984). The court held that a bolt of woven fabric that was manufactured, stenciled with embroidery, and imprinted with lines of demarcation in China prior to being sent to Hong Kong where the fabric was cut, sewn into pillowcases, and packaged was subject to its last substantial transformation in Hong Kong. Thus, when applying the court's rationale to the instant case, it appears that the fabric which will be cut and sewn into pillowcases in either Mexico, Bangladesh, or Guyana will undergo its last substantial transformation in the country in which the cutting and sewing operation occurs.

HOLDING:

Since the fitted and flat sheets at issue have only been cut to width in addition to other minor processing in either Guyana, Bangladesh, or Mexico, they did not undergo a substantial manufacturing operation in any of these countries. Instead, the fitted and flat sheets at issue underwent their last substantial transformation in Pakistan. Consequently, the country of origin of these fitted and flat sheets is Pakistan.

Based on the foregoing, the pillowcases at issue were subject to a substantial manufacturing operation in the country in which they were cut and sewn. Therefore, the pillowcases at issue were substantially transformed in either Guyana, Bangladesh, or Mexico. Thus, the country of origin for the pillowcases in question is either Bangladesh, Mexico, or Guyana.

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
Commercial Rulings Division

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