us-cbp-cross-rulings-hq-953397•HQ 953397: Country of origin of diapers.
HQ 953397: Country of origin of diapers.
us-cbp-cross-rulings-hq-953397HQ 953397: Country of origin of diapers.Guidance
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 953397
June 3, 1993
CLA-2 CO:R:C:T 953397 HP
CATEGORY: Classification
Mr. Allan Gordon
President
Performance Trading Inc.
520 South Lafayette Park Place
Suite 200
Los Angeles, CA 90057
RE: Country of origin of diapers.
Dear Mr. Gordon:
This is in reply to your letter of February 4, 1993. That
letter concerned the country of origin determination of diapers,
produced in Namibia from Chinese fabric. Please note your
reference AP11032.
FACTS:
The merchandise at issue consists of five types of infant's
woven diapers from 36 inch wide twill or bird'seye 100% cotton
fabric, described by you as follows. In your letter AP11474,
dated April 28, 1993, you informed us that you will only be
importing diapers constructed from gauze (twill) fabric, samples
of which were included with your March 26, 1993, letter.
Accordingly, this ruling only applies to diapers constructed of
the twill fabric described below.
In your letter AP11291 of March 29, 1993, you attached a
letter from your supplier outlining the steps in producing the
diapers. They are:
Step 1:Container arrives with piece goods.
Bales are unloaded and docked into
Bond Store for inspection by our
Customs officials.
Step 2:After inspection bales are opened,
individually inspected and issued out
to the cutting room.
Step 3:Material is laid out and measured on
the cutting table.
Step 4:Material is cut into exact lengths
for minimum loss of fabric.
Step 5:Set up the fabric for the cotton
insert and cut same.
Step 6:Sew cotton insert to inside fold of
diaper.
Step 7:Lay up and cut foam insert.
Step 8:Sew foam insert to centre panel.
Step 9:Fold centre panel in and stitch to
specifications.
Step 10: Inspection takes place (Concentrate
on material flaws).
Step 11: Ends of diapers are hemmed by
overlocking.
Step 12: Corners of diapers are tacked to
prevent unravelling.
Step 13: Thorough inspection takes place.
Step 14: Diapers are sorted, counted and
packed into polybags.
Step 15: Each polybag is labelled.
Step 16: Polybags are packed into cartons.
Step 17: Cartons are marked, sealed and
strapped.
Please note that (a) Steps 7 and 8 refer
to 2/6/2 diapers with foam insert and (b)
Steps 5 and 6 refer to 2/5/2 diapers. Both
the cartons and the polybags are manufactured
in Namibia.
In your letter of February 4, 1993, you described the
folding and stitching processes corresponding to Step 9, supra,
as:
1. 2/3/2 Layer Prefold.
This item will be folded and hemmed with
white thread as per the enclosed diagram from
a single layer of fabric so that when it is
finished it will have a 2 layer outer panel
and a 3 layer center panel. Please see
exhibit A [reproduced in part below].
2. 2/5/2 Prefold.
This will be the same construction as the
above item number 1, except that it will have
a 12" wide panel of the same 36" fabric [(cut
in either China or Namibia)] folded in half,
inserted and sewn in. The result will be a
diaper with a 2 layer outer panel and a 5
layer inner panel as illustrated in exhibit B
[reproduced in part below].
* * *
3. 2/6/2 Prefold with Sponge.
The construction of this diaper will be the
same [as] ref. item 2 except that it will
have a 100% polyester fiber sponge insert
[(imported into Namibia from either South
Africa, Hong Kong or the USA)] cut to size in
Namibia or the Far East) inside the center
panel resulting in a diaper with 2 layer
outer panels and a 6 layer center panel of
both cotton and sponge. Fabrication of this
diaper is illustrated in exhibit C
[reproduced in part below].
4. Institutional 4/6/4 Diapers.
These diapers would be produced in the same
manner as item number 1 except with double
layers of fabric and folded as per the
diagram so that the finished product would
result in a 4 layer outer panel and a 6 layer
inner panel. Please see exhibit D
[reproduced in part below].
These diapers would be produced in 2 sizes,
12" x 17" and 14" by 21".
* * *
5. Institutional 4/8/4 Diapers.
These diapers would be produced in the same
manner and in the same 2 sizes as those [in]
ref. 4 with the addition of a 12 inch panel
(per item number 3) hence increasing the
layers of the center panel from 6 to 6.
Please refer to exhibit E [reproduced in part
below].
EXHIBIT A
2. Prefold
construction
20" x 141/2" finished
dimensions
22oz/dozen weight
prefolded with 3-layer center
panel, 2-layer side panel
sewn with white thread
put-up
12 per package and 6 packages
per case
case size: 14.75 x 10.50 x
15.75
EXHIBIT B
4. Prefold - 82911
construction
201/2" x 141/2" finished
dimensions
30oz/dozen weight
prefolded with 5-layer center
panel, 2-layer side panel
sewn with white thread put-up
12 per package and 6 packages
per case
case size: 14.75 x 10.50 x
15.75
EXHIBIT C
5. Prefold - 82913
construction
201/2" x 141/2" finished
dimensions
33oz/dozen weight
100% polyester fiber sponge insert,
6" wide, weight 3oz
prefolded with 5-layer center
panel, 2-layer side panel
sewn with white thread
put-up
12 per package and 6 packages
per case
case size: 15.25 x 10.50 x
15.75
EXHIBIT D
institutional gauze
6. Regular-464-01
7. Infant-464-00
construction
infant 12" x 17", finished
dimensions, 28oz/dz
weight overedged with
green thread
regular 14" x 21" finished
dimensions, 44oz.dz
weight overedged with
blue thread
prefolded with 6-layer center
panel, 4-layer side panel
put-up
infant bulk packed 24 dz per
case
infant bulk packed 24 dz per
case EXHIBIT E
8. Regular 484-01
construction
14" x 21" finished dimensions
52oz/ dozen weight
8-layer center panel, 4-layer
side panels
overedged with blue thread
put-up
bulk 18 dozen per case
Finally, our examination of the fabric samples included with
your March 26, 1993, letter, and the 90cm piece good sample from
your April 28, 1993, letter has revealed that the fabrics are 3-
thread twills which contain no folding or cutting lines formed by
any means (e.g., a change in the weaving process or imprinting).
ISSUE:
What is the country of origin of the diapers for quota/visa
purposes?
LAW AND ANALYSIS:
Textile commodities 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.
Customs has long held that producing diapers from plain
cotton fabric suitable for multiple uses is considered a
substantial transformation when the manufacturing and processing
operations include, inter alia, cutting to length and width or
length alone, complex folding to create the diaper's unique
multi-layer middle portion, hemming and/or overlocking the edges,
and finishing and packaging. HRL 950849 of March 24, 1992; HRL
953078 of January 25, 1993. Contra HRL 087950 of January 9,
1991; HRL 088321 of March 7, 1991 (merely cutting fabric into
squares and hemming insufficient to constitute substantial
manufacturing process). Exhibits B, C & E, supra, with their
complex folding plus insertion of additional foam panels, clearly
meet these requirements. The processes taking place in Exhibits
A & D, supra (folding each side of the one or two layer fabric ~
of the way towards the other side, then sewing, overlocking and
tacking) have also been ruled acceptable. See, e.g., HRL 086779
of April 25, 1990. Accordingly, the Chinese fabric has been
substantially transformed in Namibia.
HOLDING:
As a result of the foregoing, the diapers are considered
products of Namibia. The holding in this ruling applies only to
the specific factual situation and merchandise identified in the
ruling request. This position is clearly set forth in
177.9(b)(1), Customs Regulations (19 C.F.R. 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 C.F.R. 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. In such a case, it is
recommended that a new ruling request be submitted in accordance
with 177.2, Customs Regulations (19 C.F.R. 177.2).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division
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