HQ 087138: HRL 086665 affirmed. Country of origin of diapers. Folding operations distinguishes construction from that of 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 087138

                           June 5, 1990




     CLA-2 CO:R:C:G  087138  HP

     CATEGORY:  Classification

     Mr. Allan Gordon
     President
     PERFORMANCE TRADING
     An affiliate of Jefferson Trading Co.
     520 SO. LAFAYETTE PARK PLACE, SUITE 200
     LOS ANGELES, CA 90057

     RE:  HRL 086665 affirmed.  Country of origin of
     diapers.  Folding operations distinguishes construction
     from that of towels.

     Dear Mr. Gordon:

         This is in reply to your letter of May 11, 1990,
     requesting clarification of HRL 086665 of March 23,
     1990, with respect to a recently discovered mistake of
     fact.

     FACTS:

         In HRL 086665, we stated the merchandise at issue
     to consist of

             100% cotton diapers, measuring in final
             form 37.47cm x 53.34 cm (14 " x 21").

                 The fabric, woven in China, is
             exported through Hong Kong to either
             Zimbabwe or Mozambique in piece goods.
             The fabric is 2 ply, 92cm (35.88")
             wide, and is constructed of a double
             warp weave.  You state that the fabric
             has a value ranging from approximately
             52 to 62 per meter, cost and freight
             ($3.38 to $4.09 per dozen).  No lines
             of demarcation exist.

                 In either Zimbabwe or Mozambique,
             the fabric is cut to width (-
 the
             original width) and length.  The top of
             the fabric is folded   of the distance
             to the bottom, and the bottom is folded
               of the distance to the top.  This
             creates a fabric 6 ply in the 43%
             center panel and 2 ply in the two 28.5%
             end panels.  Where extra layers are
             required, additional panels are
             inserted in the center (8 ply).  This
             fabric is then sewn lengthwise   and
             of the distance from the top, hemmed on
             all four sides, and packaged as a final
             product.  Assuming the fabric cost of
             62, the cost of these operations is
             $6.30 per dozen FOB.

         You now inform us that:

         1.  Country 2 now may be Zimbabwe, Mozambique,
             Lesotho or Namibia;
         2.  You have negotiated prices on the lower end of
             the scale we originally quoted;
         3.  The fabric is still cut length wise, but is
             only folded over width wise; and
         4.  The fabric is hemmed at the top and bottom
             only, not all four sides;

     and inquire as to whether this would change the result
     we found in our original ruling.

     ISSUE:

         Whether the additional information changes our
     previous country of origin determination?

     LAW AND ANALYSIS:

     1.      The identity of Country 2 would not change a
             country of origin determination, for duty and
             quota purposes, under 12 C.F.R. 130.

     2,3&4.  It is our opinion that the finished product
             would still be a product of Country 2.
             Although the processing is less than originally
             thought, the folding operations, and, where
             applicable, the insertion of additional layers
             during assembly, still changes the merchandise
             from cotton fabric to children's diapers.
             These operations distinguish the diaper
             manufacturing operations from those of, for
             example, towels.

     HOLDING:

         As a result of the foregoing, the diapers are still
     considered a product of Country 2.  Pursuant to 19
     C.F.R. 177.9, HRL 086665 of March 23, 1990, is
     affirmed.


                            Sincerely,


                      JOHN DURANT, DIRECTOR
                   COMMERCIAL RULINGS DIVISION