HQ 952012: 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 952012

                         March 24, 1993

CLA-2 CO:R:C:T  952012 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 letter of June 11, 1992.  That
letter concerned the country of origin determination of diapers,
produced in either China or Guatemala.  Please reference your
file 1606-01-B, 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.

     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, two ply 100% cotton
          cloth will be woven in a width sufficient to
          manufacture a diaper (approximately 35 inches
          wide). * * *

               2.  The PRC-origin woven cotton cloth
          will be shipped to Guatemala in large rolls
          of approximately 50 yards in length, each of
          which will contain enough material to
          manufacture several dozen diapers.

               Guatemala Production Steps

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

               2.  Using a straight knife cutting
          machine, the fabric is cut to lengths of
          approximately 22 inches.

               3.  The sides of the two layers of
          fabric are folded over (93/4 inches on the
          left and 93/4 inches on the right).

               4.  Center panels for the diapers are
          formed by using a single needle lockstitch
          straight sewing machine, which makes one pass
          along each of the two seams formed by the
          folding operations, and affixes the folded
          fabric to itself.

               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 secured with a bar tack stitch to
          prevent unraveling, and trimmed clean.

               7.  Where additional thickness is
          required (i.e., for making 4 x 8 or 4 x 10
          ply diapers), additional pieces of fabric
          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 or
length alone, complex folding to create the diaper's unique
multi-layer middle portion, hemming and/or overlocking the edges,
and finishing and packaging.  HRL 950849 of March 24, 1992; HRL
953078 of January 25, 1993.  Contra HRL 087950 of January 9,
1991; HRL 088321 of March 7, 1991 (merely cutting fabric into
squares and hemming insufficient to constitute substantial
manufacturing process).

     The Chinese fabric has regular lines of either differing
weave or high density which have no use other than as markers to
be used in the cutting, folding and sewing of the diapers.  It is
our opinion that the weave structure of the fabric confirms the
fact that the material is intended for use as diapers.  The
changing of the weaves is performed at additional cost and for
the specific purpose of creating markers for folding.  As a
result, no substantial transformation takes place.  The diapers
are therefore considered a product of China.

HOLDING:

     As a result of the foregoing, the instant merchandise is
considered woven cotton diapers of China.

     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
                   Commercial Rulings Division