HQ 0086822 - Duty; Country of Origin; Yarn - United States International Trade Commision Rulings

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HQ 086822

June 27, 1990

CLA-2 CO:R:C:G 086822 DRR

CATEGORY: CLASSIFICATION

Mr. Paul Poon
Sun Cheong Trading Co.
Flat D, 12/F, Hang Wan Bldg.
42-44 Granville Rd.
TST., Hong Kong

RE: Duty; Country of Origin; Yarn

Dear Mr. Poon:

This is in reply to your letter dated March 21, 1990, in which you inquired further as to the dutiable status and country of origin of yarns shipped from various countries to Taiwan and Hong Kong for processing.

As we have explained to you in our previous correspondence, section 12.130, Customs Regulations (19 CFR 12.130), provides, in pertinent part, that a textile or textile product 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. A new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in commercial designation or identity, fundamental character or commercial use. The criteria used to determine whether a substantial transformation has taken place include the physical change in the article, the time, complexity and value added by the operation.

Treasury Decision (T.D.) 85-38, published March 5, 1985, states, at page 66, that dyeing or printing of fabrics and yarns, or one or more finishing operations on yarns, fabrics, or garments, such as showerproofing, superwashing, bleaching, decating, fulling, shrinking mercerizing, or similar operations, will not usually result in a substantial transformation.

Our previous correspondence also informed you that, should you require additional information, you may request a tariff classification ruling under the HTSUSA pursuant to part 177 of the Customs Regulations (19 C.F.R. 177). The ruling request should include a complete description of the merchandise, the processing completed in each country and, whenever possible, samples of the merchandise at the various processing stages. The ruling request should be addressed to the Area Director of Customs, New York Seaport, 6 World Trade Center, New York, NY, 10048.

Sincerely,

John Durant, Director

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