HQ 951761: Menstrual pads from Canada; country of origin; duty treatment under CFTA

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 951761

                          July 30, 1992

CLA  CO:R:C:T  951761  jb

CATEGORY:  Classification

TARIFF:  6307.90.9986

Liann Hartley
Many Moons
#14 - 130 Dallas Road
Victoria, B.C.
Canada, V8V 1A3

RE:  Menstrual pads from Canada; country of origin; duty
     treatment under CFTA

Dear Ms. Hartley:

     This letter is in response to your inquiry of February 10,
1992, requesting a classification and country of origin ruling
for menstrual pads.  Samples were provided to this office.

FACTS:

     The submitted samples are two menstrual pads.  The first is
composed of cotton woven fabric consisting of a pouch and cloth. 
The pouch is rectangular in shape and measures approximately 7.5
inches by 2.5 inches.  The ends are folded over and sewn to form
a loop.  The cloth measures approximately 25 inches by nine
inches, it is folded and inserted into the pouch.

     The second sample also consists of a cotton woven fabric
consisting of a pouch and cloth but in addition there is a man-
made fiber woven back.  The article measures approximately 7.5
inches by 2.5 inches.  The sides of the pouch have curved
extensions with strips similar to the VELCRO brand loop fasteners
for closure.  The cotton woven cloth measures approximately 25
inches by 6.5 inches, and is inserted into the pouch.

     The cotton used for both samples originates from India and
China and arrives in Canada in bales of woven and printed fabric. 
Upon arrival into Canada, it is cut and sewn into menstrual pads.

ISSUE:

     I. What is the country of origin of the menstrual pads?

    II. Whether the merchandise in question is eligible for      
        preferential treatment under the United States-Canada   
        Free Trade Agreement (CFTA)?

   III. What is the classification of the menstrual pads?

LAW AND ANALYSIS:

I. Classification

     Classification of goods under the Harmonized Tariff Schedule
of the United States Annotated HTSUSA) is governed by the General
Rules of Interpretation (GRI).  GRI 1 provides that
classification is determined first in accordance with the terms
of the headings of the tariff and any relative section or chapter
notes.  Where goods  cannot be classified solely on the basis of
GRI 1, the remaining GRI will be applied in the order of their
appearance.

     Customs has ruled on similar merchandise in the past.  (See,
e.g., NY 858081, dated December 3, 1990; NY 860337, dated March
6, 1991; NY 869441, dated January 2, 1992).  Those rulings
determined that such articles were classified under heading 6307,
HTSUSA, which provides for other made up textile articles.  This
is a "basket" provision intended to classify merchandise not
provided for more specifically in other headings of the
Nomenclature.  The submitted merchandise is classified under
subheading 6307.90.9986, HTSUSA, which provides for other made up
articles, including dress patterns.


II. Country of Origin

     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 (e)(1) describes manufacturing or
processing operations from which an article will usually be
considered a product of the country in which those operations
occurred.  Section 12.130 (e)(1)(iv) provides that an article or
material usually will be a product of a particular foreign
territory or country when there has been:

     Cutting of fabric into parts and the assembly of those parts
     into the completed article

     In this instance, Canada is the country of origin of the
subject merchandise.  The woven fabric undergoes a substantial
change in Canada as a result of the fact that it is cut and sewn
there.  Specificallly, the woven fabric is folded over several
times to create the pocket into which the cloth is inserted,
after which it is sewn and hemmed.  Thus, what results are new
and different articles of commerce, i.e., menstrual pads.

III. The United States-Canada Free Trade Agreement (CFTA)

     General Note 3(c)(vii), HTSUSA, sets forth the rules which
determine whether products imported into the United States from
Canada are entitled to special duty treatment under CFTA. 
Eligible goods must be "goods originating in Canada" as provided
in General Note 3(c)(vii)(A), HTSUSA.

     Pursuant to General Note 3(c)(vii)(B), HTSUSA, goods
imported into the customs territory of the United Stats are
eligible for treatment as "goods originating in the territory of
Canada" only if:

     (1) they are goods wholly obtained or produced  in the      
         territory of Canada and/or the United States, or

     (2) they have been transformed in the territory of Canada   
         and/or the United States, so as to be subject-

         (I) to a change in tariff classification as described n
             the rules of subdivision (c)(vii)(R) of this note  
             
          General Note 3(c)(vii)(R)(11)(pp), HTSUSA, which
determines the required change in tariff classification for goods
classifiable in Chapter 63 states:

     A change to any heading of chapter 63 from any heading
     outside that chapter other than headings 5106 through 5113, 
     5204 through 5212, 5306 through 5311, or headings of
     Chapters 54 and 55; provided, that goods are both cut and
     sewn in the territory of Canada and/or the United States

     In this instance, the woven cotton fabric which was imported
into Canada from India and China would be classifiable in heading
5208, HTSUSA, which provides for woven fabrics of cotton.  Upon
exportation to the United States from Canada (subsequent to
cutting and sewing), the menstrual pads are classifiable under
heading 6307, HTSUSA, which provides for other made up articles. 
Thus, this merchandise cannot be considered goods originating in
Canada by having undergone a change in tariff classification
pursuant to General Note 3(c)(vii)(R)(11)(pp). 

     As no other provisions of the CFTA are applicable to this
merchandise, the menstruation pads are not considered goods
originating in Canada for CFTA purposes.

HOLDING:

     The country of origin for the merchandise at issue is
Canada.  However, the processing in Canada is insufficient to
qualify the merchandise for preferential treatment under the
United-States Canada Free Trade Agreement.

     The menstruation pads are classifiable under subheading
6307.90.9986, HTSUSA, which provides for other made up articles,
including dress patterns.  The duty rate is 7 percent ad valorem.

     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 preciously 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
                           Commercial Rulings Division