HQ 952220: Country of origin of sewing thread; classifiable in Heading5508; Section XI, Note 5.

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 952220

                      September 24, 1992    

CLA-2  CO:R:C:T 952220 CAB

CATEGORY:  Classification

TARIFF NO.:  5508.10.0000

Frank G. Bates
Gutermann of America, Inc.
P.O. Box 7387
Charlotte, N.C. 28241-7387

RE:  Country of origin of sewing thread; classifiable in Heading
5508; Section XI, Note 5.

Dear Mr. Bates:

     This letter is in response to your inquiry of July 9, 1992,
requesting a tariff classification under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) and a country of
origin ruling.  

FACTS:

     A box of six spools of spun 100% polyester thread was
submitted for examination.  Each spool measures 100 meters and
weighs 7.26 grams.  According to a Customs Laboratory report, the
sample thread consists of a dressed, three ply yarn containing a
final Z twist of 18.3 turns per inch.    

     The importer states that he intends to export large cones of
sewing thread, 1-2 kilos, from the Gutermann plant in Germany, to
the Gutermann plant in Mexico.  In Mexico, the sewing thread will
be rewound onto smaller spools with varying lengths ranging from
100 to 250 meters.  The spools of thread will then be shipped to
the United States.

ISSUE:

I.  What is the applicable tariff classification for the
merchandise in question?

II.  What is the country of origin for the merchandise in
question?

LAW AND ANALYSIS:

I.   Tariff Classification

     Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRI's).  GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes, taken in
order.  Merchandise that cannot be classified in accordance with
GRI 1 is to be classified in accordance with subsequent GRI's.

     Heading 5508, HTSUSA, provides for sewing thread of man-made
staple fibers, whether or not put up for retail sale.  Section
XI, Note 5, which pertains to textiles and textile articles
states the following:

     For the purposes of headings 5204, 5401 and 5508, the
     expression "sewing thread" means multiple (folded) or cabled
     yarn:

     (a)  Put up on supports (for example, reels, tubes) of a
     weight (including support) not exceeding 1,000 g:

     (b)  Dressed; and

     (c)  With a final "Z" twist.
     
     The sample meets the requirements for sewing thread in
accordance with Section XI, Note 5.  Consequently, the
merchandise in question is classifiable under Heading 5508.

II.  Country of Origin

     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
     
     When applying the above criteria to this situation, it does
not appear that the sewing thread will undergo a substantial
transformation in Mexico.  The minor processing in Mexico will
simply involve rewinding the thread onto smaller spools.  This
process does not amount to the complex operation requirements
referred to in Section 12.130(d)(2).  Thus, the country of origin
for the article in question is Germany.

HOLDING:

     The country of origin for the merchandise in question is
Germany.

     Based on the foregoing, the instant merchandise is
classifiable in subheading 5508.10.0000, HTSUSA, which provides
for sewing thread of man-made staple fibers, whether or not put
up for retail sale.  The applicable rate of duty is 13 percent 
ad valorem, and the textile restraint category is 200.

     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).

     The designated textile and apparel category may be
subdivided into parts.  If so, visa and quota requirements
applicable to the subject merchandise  may be affected.  Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report on Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service, which is available for
inspection at your local Customs office.

     Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements.

                                   Sincerely,



                                   John Durant, Director
                                   Commercial Rulings Division