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HQ 954224





JUNE 21, 1993

CLA-2:CO:R:C:G 954224 PR

CATEGORY: CLASSIFICATION

Ms. Janet Gagnon
New Brunswick
P.O. Box 6000
Fredericton, New Brunswick
Canada E3B 5H1

RE: Country of Origin of Quilts; Top Fabric From China

Dear Ms. Gagnon:

This is in reply to your letter of May 20, 1993, concerning the country of origin of certain quilts. A sample was submitted.

FACTS:

You state that hand embroidered tops of quilts, either cotton, polycotton, or silk, from China, will be imported into Canada where they will be combined with filling and bottom pieces and finished into completed quilts. The filling and bottom fabric will be sourced in either Canada or the United States.

The submitted sample is rectangular in shape and measures approximately 90 by 100 inches. It is pieced together from fabrics of different colors. Two of the fabrics which form a large circle have been shirred. There is piping (less than 1/4 inch in width) and embroidery on the quilt.

ISSUE:

You asked three questions:

1. What is the country of origin of the quilts?

2. Are the quilts subject to any textile import restrictions in the United States?

3. Will the quilts qualify for preferential treatment under the North American Free Trade Agreement (NAFTA)?

LAW AND ANALYSIS:

Section 12.130, Customs Regulations (19 CFR 12.130), provides, in pertinent part, as follows:
(b) Country of origin. For the purpose of this section * * * a textile or textile product, subject to section 204, which consists of materials produced or derived from, or processed in, more than one foreign territory or country, or insular possession of the U.S., shall be a product of that foreign territory or country, or insular possession where it last underwent a substantial transformation. A textile or 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.

(d) Criteria for determining country of origin. The criteria in paragraphs of this section shall be considered in determining the country of origin of imported merchandise.
These criteria are not exhaustive.
One or any combination of criteria may be determinative, and additional factors may be considered.

(1) 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.

(2) 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. -3-

When weighing all the above factors, it is our view that the decorative top fabric should determine the country of origin of the subject quilt. It is that fabric that gives the quilt its character. It is that fabric which will cause a person to buy or not buy the quilt. While we have not been furnished with any specific information concerning the manufacturing processes involved in the fabrication of the quilt, based on our prior experience, the design and manufacture of the type of top fabric described requires a significant amount of skill and time; more so than the other processes performed in Canada. This position is in accord with HQ 951210, dated April 24, 1992.

The North American Free Trade Agreement (NAFTA) has not been approved by the United Stated Congress. Accordingly, it is not a law within the purview of ?177, Customs Regulations (19 CFR

HOLDING:

The sample quilt is a product of China and, depending on the composition of the top fabric, will be subject to any textile restraints applicable to products of that country--textile category 362 if cotton, or textile category 666 if man-made fibers. If the top fabric is 85 percent or more by weight of silk, it is not presently subject to textile restraints.

Section 177.9(b)(1), Customs Regulations (19 CFR 177.9 (b)(1), states that a ruling 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. Accordingly, the holding set forth above applies only to the specific factual situation and the merchandise identified in the ruling request. 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. If there is a change in the facts furnished, the holding in this ruling may be affected. In such an event, 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

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