HQ 954224: Country of Origin of Quilts; Top Fabric From China

us-cbp-cross-rulings-hq-954224HQ 954224: Country of Origin of Quilts; Top Fabric From ChinaGuidance

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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 954224

                          JUNE 21, 1993

CLA-2:CO:R:C:G   954224 PR

CATEGORY:  Classification

Ms. Janet Gagnon
New Brunswick
P.O. Box 6000
Fredericton, New Brunswick
Canada E3B 5H1

RE:  Country of Origin of Quilts; Top Fabric From China

Dear Ms. Gagnon:

     This is in reply to your letter of May 20, 1993, concerning
the country of origin of certain quilts.  A sample was submitted.

FACTS:

     You state that hand embroidered tops of quilts, either
cotton, polycotton, or silk, from China, will be imported into
Canada where they will be combined with filling and bottom pieces
and finished into completed quilts.  The filling and bottom
fabric will be sourced in either Canada or the United States.

     The submitted sample is rectangular in shape and measures
approximately 90 by 100 inches.  It is pieced together from
fabrics of different colors.  Two of the fabrics which form a
large circle have been shirred.  There is piping (less than 1/4
inch in width) and embroidery on the quilt.

ISSUE:

     You asked three questions:

     1.  What is the country of origin of the quilts?

     2.  Are the quilts subject to any textile import 
         restrictions in the United States?

     3.  Will the quilts qualify for preferential treatment under
         the North American Free Trade Agreement (NAFTA)?

LAW AND ANALYSIS:

          Section 12.130, Customs Regulations (19 CFR 12.130),
provides, in pertinent part, as follows:
                               -2-
     (b)  Country of origin.  For the purpose of this section 
          * * * a textile or textile product, subject to section
          204, 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.

                    *         *         *

     (d)  Criteria for determining country of origin.  The  criteria
                                                            in
                                                            paragraphs
                                                            (d)(1) and
                                                            (2)
                                                            of
                                                            this
                                                            section
                                                            shall
                                                            be
                                                            considered
                                                            in
                                                            determining the
                                                            country of
                                                            origin of
                                                            imported
                                                            merchandise. 
                                                            These
                                                            criteria
                                                            are
                                                            not
                                                            exhaustive. 
                                                            One
                                                            or
                                                            any
                                                            combination of
                                                            criteria
                                                            may
                                                            be
                                                            determinative,
                                                            and
                                                            additional
                                                            factors
                                                            may
                                                            be
                                                            considered.

          (1)  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.

          (2)  In 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 
               as a result of the manufacturing or processing
               operations in each foreign territory or country,
               or insular possession of the U.S.
             (ii) The time involved in the manufacturing or
               processing operations in each foreign territory or
               country, or insular possession of the U.S.
             (iii) The complexity of the manufacturing or
               processing operations in each foreign territory or
               country, or insular possession of the U.S.
             (iv) The level or degree of skill and/or technology
               required in the manufacturing or processing
               operations in each foreign territory or country,
               or insular possession of the U.S. 
             (v) The value added to the article or material in
               each foreign territory or country, or insular
               possession of the U.S., compared to its value when
                              imported into the U.S.                                -3-

     When weighing all the above factors, it is our view that the
decorative top fabric should determine the country of origin of
the subject quilt.   It is that fabric that gives the quilt its
character.  It is that fabric which will cause a person to buy or
not buy the quilt.  While we have not been furnished with any
specific information concerning the manufacturing processes
involved in the fabrication of the quilt, based on our prior
experience, the design and manufacture of the type of top fabric
described requires a significant amount of skill and time; more
so than the other processes performed in Canada.  This position
is in accord with HQ 951210, dated April 24, 1992.

     The North American Free Trade Agreement (NAFTA) has not been
approved by the United Stated Congress.  Accordingly, it is not a
law within the purview of 177, Customs Regulations (19 CFR
177), on which the U.S. Customs Service can give rulings. 

HOLDING:

     The sample quilt is a product of China and, depending on the
composition of the top fabric, will be subject to any textile
restraints applicable to products of that country--textile
category 362 if cotton, or textile category 666 if man-made
fibers.  If the top fabric is 85 percent or more by weight of
silk, it is not presently subject to textile restraints.

     Section 177.9(b)(1), Customs Regulations (19 CFR 177.9
(b)(1), states that a ruling 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.  Accordingly, the holding set forth above
applies only to the specific factual situation and the
merchandise identified in the ruling request.  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.  If there is a
change in the facts furnished, the holding in this ruling may be
affected.  In such an event, 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

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