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HQ 953707

July 22, 1993

CLA-2 CO:R:C:T 953707 CAB


Ms. Ann M. Williams
A. N. Deringer, Inc.
30 West Service Road
Champlain, NY 12919-9703

RE: Country of origin of flat bed sheet with an attached ruffle; Section 12.130, Customs Regulations

Dear Ms. Williams:

This letter is in response to your inquiry of March 25, 1993, requesting a country of origin determination, on behalf of Marimac, for a flat sheet. A sample was submitted for examination.


Fabric manufactured in Pakistan is exported to Canada. In Canada, the fabric is cut to length and width on all four sides, hemmed on the sides and the bottom, and adorned with a ruffle at the top edge. The finished sheet will either be constructed of 50 percent polyester/50 percent cotton fabric or 55 percent cotton/45 percent polyester fabric.


What is the country of origin of the merchandise in question?


Country of origin determinations for textile products are subject to Section 12.130, Customs Regulations (19 CFR 12.130). Section 12.130 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), Customs Regulations, sets forth criteria for determining whether a substantial transformation of a textile product has taken place. This regulation states 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), Customs Regulations, 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), Customs Regulations, states that for 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

(ii) The time involved in the manufacturing or processing

(iii) The complexity of the manufacturing or processing

(iv) The level or degree of skill

(v) The value added to the article or material

Section 12.130(e)(1)(iv), Customs Regulations, states that a textile article will usually be a product of a particular country if the cutting of the fabric into parts and the assembly of those parts into the completed article has occurred in that country. However, 12.130(e)(2)(ii) states that a material will usually not be considered to be a product of a particular foreign country by virtue of merely having undergone cutting to length or width and hemming or overlocking fabrics which are readily identifiable as being intended for a particular commercial use.

In this instance, woven fabric is manufactured in Pakistan. The fabric is then sent to Canada for further processing. This additional processing includes cutting the fabric on all four sides, hemming, and sewing a ruffle to the sheet's top edge. The issue present is whether the processing in Canada will be substantially complex so as to constitute a substantial. manufacturing or processing operations within the meaning of Section 12.130(d).

Customs has consistently held that minor processing (cutting and hemming) of flat bed sheet does not constitute a substantial transformation within the meaning of Section 12.130. However, in this case, the material will be cut to length and width, hemmed, and adorned with a ruffle. The processing required to add the ruffle to the flat sheet involves an extra manufacturing step which is more complex and time-consuming, then merely cutting and hemming fabric into flat sheets.

When fabric is cut on all four sides and hemmed in order to construct a flat sheet, a new and different article of commerce is created. However, in order for a substantial transformation to result within the purview of Section 12.130, there must be additional processing that is sufficiently complex so as to constitute a substantial manufacturing operation. In this instance, cutting and hemming the fabric on all four sides, coupled with the additional processing required to attach the ruffle, will result in the material undergoing a complex manufacturing operation in Canada. Therefore, the country of origin of the flat bed sheet at issue is Canada. This conclusion is in accordance with the holding in HRL 952225, dated December 8, 1992, where Customs determined that the flat sheet processing operation in Thailand which included cutting fabric to length and width, hemming, and adorning with either piping or ruffles was sufficiently complex so as to amount to a substantial transformation in Thailand. In prior rulings, e.g. HRL 952225, Customs has used the words "cutting to length and width" in describing fabric that has been cut on all four sides.


Based on the foregoing, the country of origin of the flat sheet is Canada.

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

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