HQ 957912 - Country of origin of sewing thread; 19 CFR 12.130; spinning of fibers results in a substantial transformation; HRL 953255 (5/14/93). - United States International Trade Commision Rulings

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HQ 957912

August 15, 1995
CLA-2 CO:R:C:T 957912 SK

CATEGORY: CLASSIFICATION

Lisa Kuo
Singapore Spinners Private Ltd.
7, Lorong Tukang Lima
Jurong Town
Singapore 2261

RE: Country of origin of sewing thread; 19 CFR 12.130; spinning of fibers results in a substantial transformation; HRL 953255 (5/14/93).

Dear Ms. Kuo:

This is in response to your letter, dated April 26, 1995, in which you request a country of origin determination for sewing thread. No samples were provided to Customs.

FACTS:

The sewing thread the subject of this country of origin determination is manufactured in both the People's Republic of China and Singapore. You state that single 100 percent polyester spun (staple fiber) yarn is imported into Singapore from the People's Republic of China. In Singapore, two or three plies of this single yarn are twisted together to form what you refer to as "sewing thread." As you refer to the subject merchandise as "sewing thread," this office assumes that dressing will also be imparted to the thread in Singapore.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Section 12.130(b) of the Customs Regulations (19 CFR 12.130(b)) provides that textile products that are processed in more than one country or territory shall be products of that country or territory where they last underwent a substantial transformation. Substantial transformation is said to occur when an article has been transformed into a new and different article of commerce by means of substantial manufacturing or processing.

Section 12.130(d) of the Customs Regulations sets forth criterion which are to be applied in determining whether a substantial transformation has taken place. Section 12.130(d)(1) provides 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(e)(1) states, inter alia, that an article or material usually will be a product of a particular foreign territory or country if it has undergone in that foreign territory or country the spinning of fibers into yarn. See Section 12.130(e)(1)(ii).

Section 12.130(e)(2) of the Customs Regulations states that an article or material usually will not be considered a product of a particular foreign territory or country by merely having undergone dyeing and/or printing of fabrics or yarns. See 12.130(e)(2)(v).

The thread produced in the People's Republic of China is a single 100 percent polyester spun yarn. The yarn is twisted from two or three plies into sewing thread in Singapore. Customs has consistently held that twisting and plying operations are "simple assembly" operations and do not constitute substantial manufacturing or processing operation. See Headquarters Ruling Letters (HRL's) 952574, dated April 5, 1993, and 953255, dated May 14, 1993. We further note that the additional act of dressing thread (if this process is even performed in Singapore), is even less costly and complicated a process than the dyeing of yarn. As the dyeing of yarn is not deemed a substantial manufacturing operation, as per Section 12.130(e)(2)(v) set forth above, it follows that dressing must also be deemed a simple manufacturing process.

HOLDING:

The country of origin of the sewing thread is the People's Republic of China as it is in this country that the subject merchandise last undergoes a substantial transformation. The spinning of fibers into yarn in the People's Republic of China is a substantial manufacturing operation which transforms fibers into a new and different article of commerce (yarn).

The country of origin 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 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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