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HQ 957463

March 20, 1995

CLA-2 CO:R:C:T 957463 PR


John M. Peterson, Esquire
Neville, Peterson & Williams
39 Broadway
New York, New York 10006

RE: Reconsideration and Modification of HQ 952909 Concerning the Country of origin of Sheets

Dear Mr. Peterson:

This is in reference to Customs Headquarters Ruling Letter (HQ) 952909, dated April 12, 1993, by this office, addressed to you on behalf of Natural Feather and Textiles, Inc., concerning the country of origin of sheets. We have reviewed that ruling and determined that it is partially in error. This modifies that ruling. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993) (hereinafter referred to as section 625), notice of the proposed modification of HQ 952909 was published February 8, 1995, in the CUSTOMS BULLETIN, Volume 29, Number 6.


According to the recent submission from your law firm, cotton fabric is woven, dyed, and finished in China and then shipped to Hong Kong where it is made into finished bedding products. This latter production consists essentially of marking the fabric, cutting it on four sides, hemming three sides using single needle lockstitch machines fitted with hemming attachments, and then adding a wider hem at the top along with a strip of textile fabric (piping). The piping is stated to add "to the attractiveness and enhances the overall visual appeal of the sheet."

The issue presented is which country,China or Hong Kong, is the country of origin of the subject sheets.


Section 12.130, Customs Regulations (19 CFR 12.130) provides, in pertinent part, that a textile or textile product which consists of materials processed in more than one foreign country shall be a product of the country 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.

Customs has consistently ruled that the cutting of fabric on all four sides, and hemming, did not, by itself, involve sufficient processing to constitute "substantial manufacturing or processing operations." See the most recent ruling, HQ 956030, of November, 22, 1994. To rise to that level, there must be processing in addition to cutting and hemming. Adding piping to that processing will not suffice. Piping takes little expense and practically no time. It is done for minor decorative purposes which have no relation to the utility or manner of use of the sheet.


The country of origin of the flat sheets that were cut and hemmed on four sides and had piping added is China. HQ 952909, dated April 12, 1993, is hereby modified to reflect this holding. In accordance with section 625, this ruling will become effective 60 days after its publication in the CUSTOMS BULLETIN. Sections 177.10(b) and 177.10(c), Customs Regulations (19 CFR 177.10(b) and 177.10(c)) are not applicable to rulings or decisions published pursuant to section 625. Accordingly, the publication of this ruling neither establishes a uniform practice nor constitutes a change of practice or position by the Customs Service.


John Durant, Director

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