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HQ 952574

April 5, 1993

CLA-2 CO:R:C:T 952574 jb


Mr. Ken Lai
California Thread & Supply Inc.
1827 S. Broadway
Los Angeles, CA 90015

RE: Country of origin of sewing thread; Section 12.130, CFR; spinning of fibers results in substantial transformation

Dear Mr. Lai:

This is in response to your letter, dated September 8, 1992, requesting a country of origin determination for sewing thread you intend to import from Mexico.


You intend to import polyester yarn from an unspecified country (which we will refer to as "Country A") into Mexico, where it will undergo the following processes:

1. dyeing

2. dressing the yarn with a silicone finish to smooth the surface

3. winding the yarn onto 6,000 yard and 12,000 yard cones

4. labeling the cones

5. packing and boxing

As you letter did not provide us with certain requisite details regarding both the description and manufacturing processes of the merchandise at issue, we have made certain assumptions. First, because you refer to the yarn as "sewing thread", we assume we are dealing with a plied yarn. Secondly, since spinning and plying are not mentioned in your letter, we assume that the yarn will already have undergone spinning, twisting and plying operations before its importation into Mexico.


What is the country of origin of the submitted merchandise?


Section 12.130 of the Customs Regulations (19 CFR 12.130), sets forth the principles of country of origin for textiles and textile products subject to section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854).

Pursuant to 19 CFR 12.130(b), the standard of substantial transformation governs the country of origin determination where textiles and textile products are processed in more than one country. The country of origin of textile products is deemed to be that foreign territory or country where the article last underwent a substantial transformation. Substantial transformation is said to occur when the article has been transformed into a new and different article of commerce by means of substantial manufacturing or processing.

The factors to be applied in determining whether or not a manufacturing operation is substantial are set forth in 19 CFR 12.130(d). 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(e)(1) of the Customs Regulations states that an article or material usually will be a product of a particular foreign territory or country when it has undergone in that country, prior to importation into the U.S., any one of the following:

(ii) spinning fibers into yarn

Section 12.130(e)(2) of the Customs Regulations states factors which are not considered substantial manufacturing or processing operations, among which, include:

(i) Simple combining operations, labeling, pressing, cleaning or dry cleaning, or packaging operations, or any combination thereof:

(iv) One or more finishing operations on yarns, fabrics, or other textile articles, such as showerproofing, superwashing, bleaching, decating, fulling, shrinking, mercerizing, or similar operations; or

(v) Dyeing and/or printing of fabrics or yarns. Except for winding the sewing thread onto cones, the operations you mention in your letter seem to be specifically provided for in Section 12.130(e)(2), i.e., as factors which are not considered substantial manufacturing or processing operations.

Because the dyeing, finishing, winding and packaging operations in Mexico do not effect a substantial transformation on the yarn, the yarn is not considered to be a product of Mexico.


The operations performed in Mexico do not result in a substantial transformation of the yarn and accordingly, do not confer country of origin.

As your letter did not provide us with sufficient information, we cannot make a specific determination as to what country is the country of origin. At this time we can only determine that the country of origin is not Mexico.

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 the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

Should it be subsequently 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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