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HQ 955775




January 31, 1994

CLA-2:CO:R:C:G 955775 PR

CATEGORY: CLASSIFICATION

Mr. Bernard Rowe
Broome & Wellington (USA) Limited
P. O. Box 877
Valley Stream, N.Y. 11580

RE: Country of Origin of Shop Towels

Dear Mr. Rowe:

This is in reply to your letter of January 13, 1994, requesting a determination of the country of origin of certain shop towels. Our ruling on the matter follows.

FACTS:

You state that your client, whose name was not furnished, imports osnaburg fabric (55 percent ramie, 45 percent cotton) from China. Shop towels are cut and sewn in Georgia from this fabric. Your client, an industrial laundry, will rent these shop towels to customers in Mexico and when the goods are soiled they will be returned to the United States for washing. You anticipate that the shop towels will have a life cycle of about 13 to 15 washings. The three submitted samples are rectangular in shape and measure approximately 40.5 cm by 44 cm. Each sample contains one selvage side and three hemmed sides.

ISSUE:

The issue presented is whether the United States is the country of origin of the subject merchandise.

LAW AND ANALYSIS:

Section 12.130, Customs Regulations (19 CFR 12.130) provides, in pertinent part, that a textile or textile product which consists of materials processed in more than one foreign country shall be a product of the country 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.

In this regard, the Chinese osnaburg fabric has not undergone a substantial transformation. The fabric is primarily used commercially to make shop towels or the like and the processing in the United States, cutting and hemming three sides, is not considered to be a substantial manufacturing or processing operation.

HOLDING:

The U.S. Customs Service considers China to be the country of origin of the shop towels. As such, each time the goods enter the United States from Mexico, they must comply with the marking and quota/visa requirements applicable to products of China.

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 or 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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