HQ 957241: Country of Origin of Comforter Cover

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 957241

                        December 29, 1994

CLA-2 CO:R:C:T 957241 GG

CATEGORY:  Classification

Mr. Irving Chung
Marketing Manager
Clement Textile & International Corporation
2266 Aurora Blvd.
(Tramo) Pasay City
Metro Manila, Philippines

RE:  Country of Origin of Comforter Cover

Dear Mr. Chung:

     This is in response to your request of October 26, 1994, for
a binding ruling on the country of origin of comforter covers
manufactured by your company.

FACTS:

     Fabric that is woven, dyed and finished in the People's
Republic of China is imported in rolls into the Philippines where
it is made into comforter covers.  The steps involved in the
manufacturing process in the Philippines are as follows.

     The rolled fabric is spread according to specific length on
the cutting table and is then cut on a per layer basis.  The cut
fabric is then hemmed lengthwise using a single stitch sewing
machine.  It is then folded over and the top and remaining open
length are closed by machine overlock stitching, reinforced with
single stitches.  The semi-completed comforter cover is then
turned inside out and the portions on each side of the end of the
cover that will not form the opening are single stitched closed
by machine.  The washing label is simultaneously attached during
this process.  Four button holes are made across the opening, the
buttons are sewn on, and then the comforter covers are trimmed,
inspected, folded, and packed for shipment to the United States.

ISSUE:

     What is the country of origin of the comforter covers?

LAW AND ANALYSIS:

     Country of origin determinations for textile products are
made pursuant to section 12.130 of the Customs Regulations (19
CFR 12.130).  Section 12.130(b) 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)(1) of the 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) of the Customs Regulations states that
in 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 and/or technology        
           required in the manufacturing or processing           
           operations; and
     (v)   The value added to the article or material.

     Section 12.130(e)(1) of the Customs Regulations describes
manufacturing or processing operations from which an article will
normally be considered a product of the country in which those
operations occurred.  Pertinent operations are:

               *                   *                   *

     (iii) Weaving, knitting or otherwise forming fabric;
     
               *                   *                   *

     (iv)  Cutting of fabric into parts and the assembly of those
           parts into the completed article;

               *                   *                   *

     Applying these examples here, it is apparent that the fabric
from which the comforters are made becomes a product of China
where it is woven.  We must then determine whether the fabric is
further substantially transformed into new and different articles
of commerce when it is cut and assembled into comforter covers in
the Philippines.  Section 12.130(e)(2)(ii) of the Customs
Regulations cautions that an article or material usually will not
be considered to be a product of a particular foreign country by
virtue of merely cutting to length or width and hemming or
overlocking fabrics which are readily identifiable as being
intended for a particular commercial use.
  
     Treasury Decision 85-38 (19 Cust. Bull. 58, 67; 50 FR 8714),
which is the final rule document establishing 19 CFR 12.130,
cites towelling or bed linen material as examples of fabrics
which are readily identifiable as being intended for a particular
commercial use.  Customs has consistently taken the position that
in order for flat or fitted sheets to be deemed to have undergone
a substantial manufacturing process in a particular country or
foreign territory, the fabric must undergo, at a minimum, the
cutting to length and width of fabric, hemming and yet another
processing step.  See, for example, Headquarters Ruling Letter
(HRL) 954872, dated December 2, 1993; HRL 954710, dated October
7, 1993; and HRL 953477, dated May 10, 1993.  We have determined,
however, that the process of cutting fabric and assembling it
into a comforter cover is sufficiently complex to be deemed a
substantial manufacturing operation for country of origin
purposes.  See, for example, HRL 952909, dated April 12, 1993;
and HRL 733180, dated December 13, 1990.  A new and different
article of commerce results when the fabric is made into the
comforter cover.  Consequently, the comforter cover last
undergoes a substantial transformation in the Philippines, and,
pursuant to 19 CFR 12.130(b), is a product of that country.

HOLDING:

     The country of origin of the comforter covers is the
Philippines.

     This ruling is issued pursuant to the provisions of Part 177
of the Customs Regulations (19 CFR Part 177).  The holding in
this ruling only applies to the specific factual situation
presented and to the merchandise identified in the ruling
request.  If the information furnished is not accurate or
complete, or there is a change in the factual situation, this
ruling will no longer be valid.  In such an event, a new ruling
request should be submitted.

                              Sincerely,



                              John Durant
                              Director, Commercial
                              Rulings Division