United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1993 HQ Rulings > HQ 0089000 - HQ 0089204 > HQ 0089087

Previous Ruling Next Ruling

HQ 089087

July 22, 1991

CLA-2 CO:R:C:T 089087 CC


Mr. William J. Maloney, Esq.
Rode & Qualey
295 Madison Avenue
New York, NY 10017

RE: Country of origin of curtains

Dear Mr. Maloney:

This letter is in response to your inquiry, on behalf of Antigua Far East Garment Factory Ltd., requesting a country of origin determination for curtains. Samples were submitted for examination.


According to your submissions, Chinese, 100 percent polyester fabric that incorporates an embroidery design repeated at intervals extending across the width of the base fabric is used to make the curtains. You state that this material may be used for the production not only of curtains, but also tablecloths, seat covers, and bed covers. The fabric is imported into Antigua on rolls containing 100 meters to 200 meters where the following operations are performed:

1. The fabric is cut to curtain size.

2. The sides are hemmed.

3. The eyelet embroidery work is done.

4. The bottom of the fabric is cut up to the edge of the embroidery.

5. The top is folded and stitched creating a pocket through which a curtain rod may be inserted.

6. The curtain is hand cleaned.

7. The embroidery is hand ironed.

8. The curtains are packed into plastic bags.

You have submitted two samples of the finished curtains. One sample measures approximately 60 inches in width and 84 inches in length; it is cut to length and not to width when processed. The other sample measures approximately 29, inches in width and 84 inches in length; it is cut to both length and width when processed.

You state that by far the greatest time consuming and costly processing operation is the labor intensive cutting of base fabric from the embroidery. Base fabric has been carefully trimmed from the bottom of the lower embroidery pattern so that the bottom edge of the curtain panel consists of the embroidery. Additionally, the base fabric must be cut to form numerous "holes" in the embroidery pattern so that it has significant openwork. The cutting operation is extremely labor intensive and requires the use of a hand held razor. Furthermore, after the worker has removed the fabric using the razor, a specially designed hot iron is used to finish the holes and eliminate any threads that may remain. On the average, one worker can perform the cutting operations on two to three dozen curtains in one ten hour shift. In addition, the value added by processing operations in Antigua, relative to the value of the fabric imported from China, is 40 percent to 45 percent.


What is the county of origin for the merchandise at issue?


Section 12.130 of the Customs Regulations (19 CFR 12.130) is applicable to the merchandise at issue. Section 12.130(b) of the Customs Regulations 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) of the Customs Regulations sets forth criteria in determining whether a substantial transformation of a textile product has taken place. This regulation states that 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) 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) of the Customs Regulations states that 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.

The processing operations performed in Antigua result in a new and different article of commerce. In addition, we believe that the processing operations performed in Antigua, which include cutting the fabric to form the body of the curtains, cutting done on the embroidery, hemming the sides, and sewing to form the rod pocket, constitute substantial manufacturing and processing operations on this merchandise. Therefore the last substantial transformation occurs in Antigua, and the country of origin is Antigua.


The country of origin of the merchandise at issue is Antigua.

The samples are being returned 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).


John Durant, Director

Previous Ruling Next Ruling