HQ 0954445 - Country of origin of texturized yarns; Section 12.130, Customs Regulations - United States International Trade Commision Rulings

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HQ 954445

October 7, 1993

CLA-2 CO:R:C:T 954445 CAB

CATEGORY: CLASSIFICATION

Ms. Janne Markala
Kemira Fibres Filaments
P.O. Box 24
37601 Valkeakoski, Finland

RE: Country of origin of texturized yarns; Section 12.130, Customs Regulations

Dear Ms. Markala:

This is in response to your inquiry of June 7, 1993, requesting a country of origin ruling concerning texturized polyamide 66 (nylon) filament yarns. No sample was submitted for examination.

FACTS:

The merchandise in question is texturized polyamide filament yarns. Two of the yarns measure 175 denier (194 decitex) and one of them measures 170 denier (189 decitex). The yarns are made in various countries including Germany, Switzerland, the United Kingdom, or possibly the United States. Customs is assuming that the subject yarns are single yarns since plied yarns would generally not be subject to texturizing. Also, Kemira Fibres is solely a texturizing company which only uses raw materials that are untexturized, continuous, extruded multifilament yarns made in various countries.

ISSUE:

What is the country of origin of the merchandise in question?

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

In this instance, Customs must determine where the last substantial transformation occurred in order to ascertain the country of origin of the merchandise at issue. In essence, the processing operations consist of yarn produced in various countries exported to Finland for a manufacturing operation referred to as texturizing. Customs understands the texturizing operation involves twisting and heat setting continuously extruded multifilament yarn and then the removal of the twist. The material acquires a different hand and appearance and results in more elasticity and stretchability. While the yarn undergoes texturizing in Finland, this processing does not constitute a substantial manufacturing operation in accordance with Section 12.130. This conclusion is based on the fact that even though the yarn is altered in Finland as a result of the texturizing, for commercial purposes it is still yarn; a new and different article of commerce does not emerge. Therefore, the last substantial manufacturing operation occurred in the country where the yarns were produced.

HOLDING:

The country of origin of the subject yarns is the country where the yarns were produced: Germany, the United Kingdom, or Switzerland. The country of origin of the yarns produced in the United States and texturized in Finland and the tariff classification issue will be determined by Customs Special Classification Branch under separate cover.

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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