HQ 953566: Country of origin of fitted and flat sheets, andpillowcases; 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 953566

                          June 21, 1993

CLA-2  CO:R:C:T 953566 CAB

CATEGORY:  Classification

Mr. Sudhir Mehta
Textile Concepts
9 East Gate Road
Long Valley, NJ 07853

RE:  Country of origin of fitted and flat sheets, and
pillowcases; Section 12.130, Customs Regulations

Dear Mr. Mehta:

     This letter is in response to your inquiry of February 2,
1993, requesting a country of origin determination for bed linen
sets that consist of a flat sheet, fitted sheet, and pillowcases. 
The merchandise will be imported through the port of New York. 
Three sample sets were submitted for examination.

FACTS:

      Two of the sample sets consist of a flat sheet, fitted
sheet, and pillowcases which are all constructed of 100 percent
woven cotton printed fabric.  The printed fabric used to make the
finished products is purchased in Pakistan.  Since you fail to
specify in your inquiry, Customs is assuming that the country in
which the fabric was purchased is also the country where the
fabric was manufactured.  The printed fabric is either sent to
Mexico or Guyana where it is cut to length, sewn into the
finished product, and packed for export to the United States. 
The sample sheets contain selvage at the top and bottom edges. 
This fact indicates that the sheets have only been cut to width. 

     The other sample bed linen set at issue is comprised of a
flat sheet, fitted sheet, and pillowcases which are all
constructed of 100 percent woven cotton greige fabric.  The
greige fabric is purchased in Pakistan.  The fabric is then sent
to Bangladesh where it is bleached, printed, cut to length, sewn
into the finished product, and packed for export to the United
States.  As stated above, the sample sheets have only been cut to
width since there is a selvage edge at the top and bottom section
of the sheets.  

ISSUE:

     What is the country of origin for the merchandise at issue?

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  

     Section 12.130(e)(1) further provides, in pertinent part:

          An article or material usually will be a product of
     particular foreign territory or country...when it has
     undergone prior to the importation into the U.S. in that
     foreign territory or country...any of the following:


     (i)  Dyeing of fabric and printing when accompanied by two
     or more of the following finishing operations:  bleaching,
     shrinking, fulling, napping, decating, permanent stiffening,
     weighting, permanent embossing, or moireing.  
  
     When making a determination as to whether fabric used to
make sheets has been substantially transformed, the minimum
processing required is cutting the fabric to length and width. 
After the fabric has been cut on four sides, Customs assesses the
additional processing and makes a determination as to whether the
additional processing amounts to a substantial manufacturing
operation.   

     In prior cases, Customs has evaluated the degree of skill,
value, and amount of time expended to manufacture sheets and made
substantial transformation conclusions accordingly.  In 
Headquarters Ruling Letter (HRL) 952909, dated April 12, 1993,
Customs concluded that fabric that had been cut to length and
width, coupled with the additional processing required to attach
piping to flat sheets, amounted to a substantial manufacturing
operation.  In HRL 953477, dated May 18, 1993, Customs
distinguished fitted sheets that had been cut to length and
width, and fitted sheets that had merely been cut on two sides. 
Customs applied the criteria stipulated in Section 12.130 and
concluded that merely cutting fabric to length, hemming, and
adding elastic to the corners did not result in a substantial
manufacturing operation.  Customs evaluated the processing
involved in manufacturing the fitted sheets that had been cut to
both length and width and maintained that the processing involved
amounted to a substantial manufacturing operation.  

     In this instance, the material used to create both the
fitted and flat sheets has only been cut to width.  Therefore, 
it is clear that the processing operations involved in
constructing the subject fitted and flat sheets in Guyana or
Mexico does not amount to the minimum processing necessary to
result in a substantial manufacturing operation in accordance
with Section 12.130.  This analysis is consistent with the cited
Customs rulings which require material to be cut to both length
and width coupled with additional processing to result in a
substantial manufacturing operation.  Therefore the fitted and
flat sheets underwent their last substantial transformation in
the country in which the fabric was manufactured, Pakistan.   

     To comply with Section 12.130(e)(1)(i), a fabric must be
both dyed and printed, as well as being subjected to the other
required processing.  See, HRL 089230, dated May 10, 1991, where
the subject merchandise was greige fabric that had been produced
in China, scoured, bleached, printed, and pre-shrunk in Hong
Kong, and finally cut, hemmed, and packaged in the Philippines. 
Customs stated that none of the processing which the fabric was
subjected to after it was formed in China resulted in a
substantial transformation.  In this case, the greige fabric used
to make the fitted and flat sheets is not dyed and printed in
addition to other processing in any single country.  Since this
type of processing is a requirement of Section 12.130(e)(1)(i), 
the fabric in question underwent its last substantial
transformation in Pakistan.

     In determining the country of origin for pillowcases,
Customs refers to Belcrest Linens v. United States, 741 F.2d
1368, (Fed. Cir. 1984).  The court held that a bolt of woven
fabric that was manufactured, stenciled with embroidery, and
imprinted with lines of demarcation in China prior to being sent
to Hong Kong where the fabric was cut, sewn into pillowcases, and
packaged was subject to its last substantial transformation in
Hong Kong.  Thus, when applying the court's rationale to the
instant case, it appears that the fabric which will be cut and
sewn into pillowcases in either Mexico, Bangladesh, or Guyana
will undergo its last substantial transformation in the country
in which the cutting and sewing operation occurs.

HOLDING:

     Since the fitted and flat sheets at issue have only been cut
to width in addition to other minor processing in either Guyana,
Bangladesh, or Mexico, they did not undergo a substantial
manufacturing operation in any of these countries.  Instead, the
fitted and flat sheets at issue underwent their last substantial
transformation in Pakistan.  Consequently, the country of origin
of these fitted and flat sheets is Pakistan.  

     Based on the foregoing, the pillowcases at issue were
subject to a substantial manufacturing operation in the country
in which they were cut and sewn.  Therefore, the pillowcases at
issue were substantially transformed in either Guyana, 
Bangladesh, or Mexico.  Thus, the country of origin for the
pillowcases in question is either Bangladesh, Mexico, or Guyana.

     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