HQ 953707: Country of origin of flat bed sheet with an attached ruffle;Section 12.130, Customs Regulations

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 953707

                          July 22, 1993

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

CATEGORY:  Classification

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.

FACTS:

     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.

ISSUE:

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

LAW AND ANALYSIS:

     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.

HOLDING:

     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).   

                                   Sincerely,



                                   John Durant, Director