HQ 086429: Country of origin of shop towels.

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 086429

                         February 15, 1990



   CLA-2 CO:R:C:G  086429  HP

   CATEGORY:  Classification

   Mr. Murray Mehler
   Mehler Textiles International, Ltd.
   P.O. Box 877
   Valley Stream, NY 11580

   RE:  Country of origin of shop towels.

   Dear Mr. Mehler:

        This is in reply to your letter of December 4, 1989,
   concerning the country of origin of shop towels.  You question
   the assertion by our New York office that if you take cloth,
   by the yard, from Country A, and have it cut and sewn into
   shop towels in Country B, Country B is considered the country
   of origin for classification purposes.

        Towels produced in more than one foreign country are
   subject to the country of origin requirements delineated in
   section 12.130 of the Customs Regulations (19 C.F.R.
12.130).
   These regulations provide that:

             ... a textile product ... which consists of
             materials produced or derived from, or processed in,
             more than one foreign ... country shall be a product
             of that foreign ... country where it last underwent
             a substantial transformation.

   12.130(b).  A textile product undergoes a substantial
   transformation when it is "... transformed by means of
   substantial manufacturing or processing operations into a new
   and different article of commerce."

        Section 12.130 of the regulations outlines the criteria
   used to determine the country of origin for textiles and
   textile products.  Specifically, this provision of the
   regulations is considered in determining whether a textile
   product has undergone substantial manufacturing or processing
   operations, and what constitutes a new and different article
   of commerce.  The factors considered are not exhaustive.  In
   fact,  "one or any combination of criteria may be
   determinative, and additional factors may be considered."

        In determining whether merchandise has undergone
   substantial manufacturing or processing operations, we
   consider the (1) physical change in the material or the
   article; (2) time involved; (3) complexity of the operations;
   (4) level or degree of skill and/or technology required; and
   (5) value added to the article in each country.  Your letter
   of December 4, 1989, does not provide the necessary
   information outlined in the regulations pertaining to the
   towels.  We cannot properly determine the country of origin
   without detailed information specifically regarding the towels
   in question.

        In addition, your request for a ruling should include
   detailed explanations of the processing undergone in each
   country the towels.  You should also provide the exact amount
   of time incurred in cutting and assembly, as well as the exact
   costs incurred.  Please include a listing of all machines
   used, a description of the production capabilities,
   information on the value added by each operation, and the
   amount of capitalization required in each country.

        We have included several previous rulings on the country
   of origin of towel products.  We hope they may be of
   assistance in outlining any future ruling request you may
   submit.


                             Sincerely,


                       JOHN DURANT, DIRECTOR
                    COMMERCIAL RULINGS DIVISION