HQ 085692: Country or Origin; Yarn; Substantial Transformation

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 085692

                                  December 21, 1989


          CLA-2 CO:R:C:G 085692 DRR

          CATEGORY:  Classification

          TARIFF NO.: 5402; 5403; 5406

          Mr. Paul Poon
          Sun Cheong Trading Co.
          Flat D, 12/F, Hang Wan Bldg.
          42-44 Granville Rd.
          TST., Hong Kong

          RE: Country or Origin; Yarn; Substantial Transformation

          Dear Mr. Poon:

               This is in reply to your letter dated September 22, 1989, in
          which you inquired as to the dutiable status and country of
          origin of yarns shipped from various countries to Taiwan and Hong
          Kong for processing.

               Section 12.130, Customs Regulations (19 CFR 12.130),
          provides, in pertinent part, that a textile or textile product
          which consists of materials produced or derived from, or
          processed in, more than one foreign territory or country, or
          insular possession of the U.S., shall be a product of that
          foreign territory or country, or insular possession 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.  A new and different article of commerce
          will usually result from a manufacturing or processing operation
          if there is a change in commercial designation or identity,
          fundamental character or commercial use.  The criteria used to
          determine whether a substantial transformation has taken place
          include the physical change in the article, the time, complexity
          and value added by the operation.





















                                         -2-


               Yarns are classifiable in headings 5402, 5403, and 5406 of
          the Harmonized Tariff Schedule of the United States Annotated
          (HTSUSA).  Copies of headings 5402, 5403, and 5406, HTSUSA, are
          enclosed for your information.  Should you require additional
          information, you may request a tariff classification ruling under
          the HTSUSA pursuant to part 177 of the Customs Regulations (19
          C.F.R. 177).  The ruling request should include a complete
          description of the merchandise, the processing completed in each
          country and, whenever possible, samples of the merchandise at the
          various processing stages.  The ruling request should be
          addressed to the Area Director of Customs, New York Seaport, 6
          World Trade Center, New York, NY, 10048.  Additional information
          is provided in the enclosed leaflets.  In preparing your request,
          you may also find it helpful to contact a licensed customhouse
          broker.

                                    Sincerely,




                                    John Durant, Director
                                    Office of Commercial Rulings


          Enclosures



































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          085692