HQ 086693: Country of origin; surgical towels

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 086693
                        October 26, 1990




CLA-2  CO:R:C:G  086693 JS

CATEGORY:  Classification

Lawrence R. Pilon
Hodes & Pilon
431 South Dearborn Street
Suite 405
Chicago, Illinois 60605-1121

RE:  Country of origin; surgical towels

Dear Mr. Pilon:

     This is in reference to your letters of March 5 and June 21,
1990, on behalf of Universal Joint Trading Co., Ltd., requesting
a country of origin determination for surgical towels to be
imported from the Philippines.

FACTS:

     The samples at issue consist of two fabric pieces which
represent the beginning and end stages of construction in the
making of the subject towels.  The first sample is a length of
fabric measuring approximately 20 inches by 36 inches in width,
woven and placed on large rolls in Taiwan.  You state that the
fabric is imported in lengths of 40 to 100 meters.  The second
sample is a towel measuring approximately 16 inches by 26 inches,
which has hemmed and stitched edges.  Each piece is made of a 100
percent cotton fabric which is dyed blue (in Taiwan) prior to
importation.

     Once the woven fabric is in the Philippines it undergoes the
following processes:  the fabric is cut and sewn, washed and
dried, delinted, inspected, folded, and packaged.  Furthermore,
some or all of these activities are carried out in a "clean room"
environment - designed to protect against contamination of the
goods - which complies with the manufacturing standards for
surgical towels set by medical buyers.

ISSUE:

     Whether in terms of time, complexity and value added, the
proposed operations of Country A were correctly determined to
constitute a substantial manufacturing or processing
transformation such that the completed surgical towels would be
considered a manufacture of Country A for purposes of 19 CFR
12.130.

LAW AND ANALYSIS:

     Although most of the manufacturing processes at issue occur
in Country B, the weaving of the raw material in Country A is
deemed to be the factor which contributes most to the creation of
the final product.  The fabric constructed in Country A is
manufactured in such a way as to be readily identifiable in the
industry as surgical toweling fabric; the special weave and the
blue dye of the raw material further marks its intended use in
the manufacture of these towels.

     We also note that the cost of production and value added
information you provided in your July 30 letter substantiates the
designation of Country A as the country of origin, since the
greater percentage of value added occurs in Country A rather than
in the Philippines.

      The processing which takes place in Country B does not
indicate, as regards the time or level of skill required, that
assembly requires anything more than a number of simple
operations which do not constitute a substantial manufacturing or
processing operation.  See, HQ 086132 (February 2, 1990) and HQ
086971 (June 19, 1990)(cutting, hemming and stitching of fabric
not considered substantial manufacturing process as compared to
weaving of original surgical toweling material).  Consequently,
the towels have not been substantially transformed in Country B.
Wherever the fabric is produced is therefore the country of
origin pursuant to 19 CFR 12.130 for quota and country of origin
marking purposes.

HOLDING:

     The assembly operations performed in Country B do not
constitute a substantial transformation as required by 19 CFR
12.130.  The country of origin for the merchandise at issue is
Country A, and a Country A visa must accompany the goods.

     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 Customs
Regulations 19 CFR 177.9 (b)(1), which states that a ruling
letter is issued on the assumption that all information
furnished in connection with the ruling request and incorporated
therein, 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 that
there is a change in the facts previously furnished, the country
of origin determination may be affected.  In such case, 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
                                   Commercial Operations Division