HQ 954445: Country of origin of texturized yarns; Section 12.130,Customs Regulations

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 954445

                         October 7, 1993

CLA-2  CO:R:C:T 954445 CAB

CATEGORY:  Classification

Ms. Janne Markala
Kemira Fibres Filaments
P.O. Box 24
37601 Valkeakoski, Finland

RE:  Country of origin of texturized yarns; Section 12.130,
Customs Regulations

Dear Ms. Markala:

     This is in response to your inquiry of June 7, 1993,
requesting a country of origin ruling concerning texturized
polyamide 66 (nylon) filament yarns.  No sample was submitted for
examination.

FACTS:

     The merchandise in question is texturized polyamide filament
yarns.  Two of the yarns measure 175 denier (194 decitex) and one
of them measures 170 denier (189 decitex).  The yarns are made in
various countries including Germany, Switzerland, the United
Kingdom, or possibly the United States.  Customs is assuming that
the subject yarns are single yarns since plied yarns would
generally not be subject to texturizing.  Also, Kemira Fibres is
solely a texturizing company which only uses raw materials that
are untexturized, continuous, extruded multifilament yarns made
in various countries.  

ISSUE:

     What is the country of origin of the merchandise in
question?

LAW AND ANALYSIS:

     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  

     In this instance, Customs must determine where the last
substantial transformation occurred in order to ascertain the
country of origin of the merchandise at issue.  In essence, the
processing operations consist of yarn produced in various
countries exported to Finland for a manufacturing operation
referred to as texturizing.  Customs understands the texturizing
operation involves twisting and heat setting continuously
extruded multifilament yarn and then the removal of the twist. 
The material acquires a different hand and appearance and results
in more elasticity and stretchability.  While the yarn undergoes
texturizing in Finland, this processing does not constitute a
substantial manufacturing operation in accordance with Section
12.130.  This conclusion is based on the fact that even though
the yarn is altered in Finland as a result of the texturizing,
for commercial purposes it is still yarn; a new and different
article of commerce does not emerge.  Therefore, the last
substantial manufacturing operation occurred in the country where
the yarns were produced.  

HOLDING:

     The country of origin of the subject yarns is the country
where the yarns were produced:  Germany, the United Kingdom, or
Switzerland.  The country of origin of the yarns produced in the
United States and texturized in Finland and the tariff
classification issue will be determined by Customs Special
Classification Branch under separate cover.

     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).
     
                                   Sincerely,



                                   John Durant, Director
                                   Commercial Rulings Division