HQ 957567: Reconsideration and Modification of NY 890346 Concerning theCountry of origin of Sheets

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 957567

                          March 20, 1995

CLA-2  CO:R:C:T  957567 PR

CATEGORY:  Classification

Gail Cumins, Esquire
Sharretts, Paley, Carter & Blauvelt, P.C.
67 Broad Street
New York, New York 10004

RE:  Reconsideration and Modification of NY 890346 Concerning the
Country of origin of Sheets

Dear Ms. Cumins:

     This is in reference to New York Ruling Letter (NY) 890346,
issued October 8, 1993, by the Area Director of Customs, New York
Seaport, addressed to you on behalf of Morgan Group Inc.,
concerning the country of origin of sheets.  We have reviewed
that ruling and determined that it is partially in error. This
modifies that ruling.  Pursuant to section 625(c)(1), Tariff Act
of 1930 (19 U.S.C. 1625(c)(1)), as amended by section 623 of
Title VI (Customs Modernization) of the North American Free Trade
Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057,
2186 (1993) (hereinafter referred to as section 625), notice of
the proposed modification of NY 890346 was published February 8,
1995, in the CUSTOMS BULLETIN, Volume 29, Number 6.

FACTS:

     According to the information contained in NY 890346, the
goods in question are flat bed sheets manufactured as follows: 
Woven fabric manufactured in Pakistan is shipped to Thailand
where it is cut and hemmed on three sides and the remaining side
is finished with contrasting capping.

ISSUE:

     The issue presented is which country, Pakistan or Thailand,
is the country of origin of the subject sheets.
                               -2-
LAW AND ANALYSIS:

     Section 12.130, Customs Regulations (19 CFR 12.130),
provides, in pertinent part, that a textile or textile product
which consists of materials processed in more than one foreign
country shall be a product of the country where it last underwent
a substantial transformation.  A textile or 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.

     Customs has consistently ruled that the cutting of fabric on
all four sides, and hemming, did not, by itself, involve
sufficient processing to constitute "substantial manufacturing or
processing operations."  See the most recent ruling, HQ 956030,
of November, 22, 1994.  To rise to that level, there must be
processing in addition to cutting and hemming.  Adding capping or
piping to that processing will not suffice.  Piping takes little
expense and practically no time.  Capping usually is used in
place of hemming to finish an edge.  Both are done for minor
decorative purposes which have no relation to the utility or
manner of use of the sheet.  Capping and piping are
distinguishable from adding four inch borders (or extra pieces of
fabric) which add length, or from substantial ruffles which
create a major visual impact and, to a degree, change the nature
(and possibly the use) of the sheet.

HOLDING:

     The country of origin of the flat sheets that were only
hemmed on three sides and had capping added to the fourth side is
Pakistan.  NY 890346, dated October 8, 1993, is hereby modified
to reflect this holding.  In accordance with section 625, this
ruling will become effective 60 days after its publication in the
CUSTOMS BULLETIN.  Sections 177.10(b) and 177.10(c), Customs
Regulations (19 CFR 177.10(b) and 177.10(c)) are not applicable
to rulings or decisions published pursuant to section 625. 
Accordingly, the publication of this ruling neither establishes a
uniform practice nor constitutes a change of practice or position
by the Customs Service.

                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division