HQ 952011: Country of origin of diapers.

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 952011

                        January 19, 1993

CLA-2 CO:R:C:T  952011 HP

CATEGORY:  Classification

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

RE:  Country of origin of diapers.

Dear Mr. Peterson:

     This is in reply to your letters of June 11, 1992, and
December 17, 1992.  Those letters concerned the country of origin
determination of diapers, produced in either China or Guatemala. 
Please reference your file 1606-01-A, Pro Diaper, Inc.

FACTS:

     The merchandise at issue consists of infant's 100% cotton
diapers used by diaper services and suitable for washing and
repeated use.  The diapers will be manufactured in Guatemala by
Textiles Tropicales, S.A., for and on behalf of Pro Diaper, Inc. 
The merchandise will be produced from cotton fabric which is
woven in the People~s Republic of China.

     Accompanying your second submission was a sample of the
Chinese fabric as it will be imported into Guatemala, cut to a
convenient length. It is of a twill weave, approximately 35
inches to 40 inches in width, and contains no folding lines or
other lines of demarcation.  The materials and production steps
involved in the manufacture of these diapers is described in your
submission as follows:

               A.  China Production Steps

               1.  In the PRC, 100% cotton cloth will
          be woven.  A sample of this cloth, as woven
          in China, is enclosed [with your second
          letter] for Customs' reference.  The cloth
          will have no lines of demarcation or cutting
          lines

               2.  The PRC-origin woven cloth will be
          shipped to Guatemala in large rolls
          [approximately 40' bolts or "festoons"], each
          of which will contain enough material to
          manufacture several dozen diapers.

               B.  Guatemala Production Steps

               1.  Two layers of the PRC-origin cotton
          fabric are placed (spread) onto a cutting
          table, examined, and stacked approximately
          200 layers deep.

               2.  The fabric is cut [length and width]
          to size (24 inches wide by 16 inches long).

               3.  The sides of the two layers of
          fabric are folded over (4 inches on the left
          and 8 inches on the right).

               4.  Center panels for the diapers are
          formed by using a straight sewing machine.

               5.  The fabric, sewn as described above,
          will be taken to a serging machine, where the
          top and bottom edges will be trimmed and
          overedged.

               6.  Threads from all edges of the diaper
          will be trimmed, and a short trailer thread
          will remain.

               7.  Where additional thickness is
          required (i.e., for making 4 x 8 or 4 x 10
          ply diapers), additional pieces of cut
          material will be inserted into the center
          section of the diaper and sewed in.

               8.  The completed merchandise will be
          inspected, packaged into cartons and shipped
          from Guatemala to the United States.

ISSUE:

     Whether the manufacturing operations taking place in
Guatemala on the Chinese fabric substantially transform that
fabric into Guatemalan diapers?

LAW AND ANALYSIS:

     Textile commodities produced in more than one foreign
country are subject to the country of origin requirements
delineated in section 12.130 of the Customs Regulations (19
C.F.R.  12.130).  These regulations provide that:

          . . . a textile product . . . which consists
          of materials produced or derived from, or
          processed in, more than one foreign . . .
          country shall be a product of that foreign .
          . . country where it last underwent a
          substantial transformation.

 12.130(b).  A textile product undergoes a substantial
transformation when it is ". . . transformed by means of
substantial manufacturing or processing  operations into a new
and different article of commerce." Section 12.130 of the regulations outlines the criteria used
to determine the country of origin for textiles and textile
products.  Specifically, this provision of the regulations is
considered in determining whether a textile product has undergone
substantial manufacturing or processing operations, and what
constitutes a new and different article of commerce.  The factors
considered are not exhaustive.  In fact,  "one or any combination
of criteria may be determinative, and additional factors may be
considered."  In determining whether merchandise has undergone
substantial manufacturing or processing operations, we consider
the (1) physical change in the material or the article; (2) time
involved; (3) complexity of the operations; (4) level or degree
of skill and/or technology required; and (5) value added to the
article in each country.

     Customs has long held that producing diapers from plain
cotton fabric suitable for multiple uses is considered a
substantial transformation when the manufacturing and processing
operations include, inter alia, cutting to length and width,
complex folding to create the diaper~s unique multi-layer middle
portion, hemming and/or overlocking the edges, and finishing and
packaging.  HRL 086665 of March 23, 1990; HRL 086779 of April 25,
1990; HRL 087585 of August 13, 1990; HRL 088395 of April 1, 1991
(rev~d on other grounds); HRL 950849 of March 24, 1992.  This is
true even where the fabric is cut only to length.  HRL 087138 of
June 5, 1990; HRL 087949 of January 8, 1991.  Contra HRL 088321
of March 7, 1991 (mere cutting of fabric into squares and hemming
insufficient to constitute substantial manufacturing process). 
Since your manufacturing process conforms to the above listing,
and since the cloth as it is imported into Guatemala contains no
folding lines or lines of demarcation formed by any means (e.g.,
by a change in the weaving process or by imprinting), it is our
opinion that the Textiles Tropicales manufacturing operations
performed in Guatemala substantially transform the Chinese fabric
into Guatemalan diapers.

HOLDING:

     As a result of the foregoing, for purposes of quota, visa
and marking, the diapers at issue are considered a product of
Guatemala.

     The holding in this ruling applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in  177.9(b)(1),
Customs Regulations (19 C.F.R.  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 C.F.R.  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. In such a case, it is recommended that a
new ruling request be submitted in accordance with  177.2,
Customs Regulations (19 C.F.R.  177.2).

     A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported.  If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.

                           Sincerely,



                      John Durant, Director