HQ 0952693 - Country of origin of lace fabric - United States International Trade Commision Rulings

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 0952623 - HQ 0952715 > HQ 0952693

HQ 952693

January 11, 1993

CLA-2 CO:R:C:T 952693 CC

CATEGORY: CLASSIFICATION

Tom Paciaffi
Vice-President
Coronet Brokers Corp.
P.O. Box 30764
Cargo Bldg. 80, JFK International Airport Jamaica, NY 11430

RE: Country of origin of lace fabric

Dear Mr. Paciaffi:

This letter is in response to your inquiry, on behalf of Roth International, requesting a country of origin determination for lace fabric.

FACTS:

The submitted merchandise is French-made Levers lace, an ornamental open-work fabric made on the levers machine and one of finest and most intricate of machine-made laces. The merchandise at issue, which contains floral designs, is sent to China for the application of beads and sequins. You have submitted 5 samples.

Style 44358 consists of 52 percent cotton fabric, 29 percent nylon, and 19 percent lurex by weight. The cost of the beading process in China is 38 percent of the total (material and labor) cost of the finished article. We estimate that one-tenth of the surface area of the fabric is covered with beads and sequins.

Style 44323 consists of 50 percent rayon, 33 percent lurex, and 17 percent nylon by weight. The cost of the beading process in China is 55 percent of the total (material and labor) cost of the finished article. We estimate that less than one-tenth of the surface area of the fabric is covered with beads.

Style 44335 consists of 35 percent rayon, 35 percent lurex, and 30 percent nylon by weight. The cost of the beading process in China is 44 percent of the total (material and labor) cost of the finished article. We estimate that one-fifth of the surface area of the fabric is covered with beads and sequins.

Style 44207 consists of 75 percent cotton and 25 percent nylon by weight. The cost of the beading process in China is 52 percent of the total (material and labor) cost of the finished article. We estimate that less than one-tenth of the surface area of the fabric is covered with beads and sequins.

Style 44424 consists of 78 percent rayon, 17 percent nylon, and 5 percent lurex by weight. The cost of the beading process in China is 59 percent of the total (material and labor) cost of the finished article. We estimate that one-third of the surface area of the fabric is covered with sequins and beads.

ISSUE:

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

LAW AND ANALYSIS:

Country of origin determinations for textile products are subject to Section 12.130 of the Customs Regulations (19 CFR 12.130). Section 12.130(b) 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.

We do not believe that attaching beads and sequins to the lace at issue results in a substantial transformation. A new and different article has not been created in China. The beads and sequins do not change the commercial designation or identity, the fundamental character, or the commercial use of the merchandise at issue, but merely embellish it. In addition, the complexity and the level or degree of skill in attaching the beads and sequins is far less than that used in creating the lace. Finally, we have ruled that attaching beads and sequins to lace does not result in a substantial transformation. See, e.g., Headquarters Ruling Letter (HRL) 088442 of April 25, 1991, and HRL 950258 of December 18, 1991. Consequently, the country of origin for all of the styles at issue is France.

HOLDING:

The country of origin for the merchandise at issue is France.

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).

Sincerely,

John Durant, Director

Previous Ruling Next Ruling