HQ 957470: Country of Origin determination for pillow cases; cuttingand assembly in United Arab Emirates; 19 CFR 12.130(e)(1)(iv);cutting and assembly constitutes 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 957470
                                 
                          April 14, 1995

CLA  R:C:T  957470  jb

CATEGORY:  CLASSIFICATION

Mr. Haytham Al Qadwa
International Textile Industries
P.O. Box 1830
Ajman
United Arab Emirates

RE:  Country of Origin determination for pillow cases; cutting
and assembly in United Arab   Emirates; 19 CFR 12.130(e)(1)(iv);
cutting and assembly constitutes substantial           transformation 

Dear Mr. Qadwa:

     This letter is in response to your inquiry of December 10,
1994, requesting a country of origin determination for certain
pillow cases.  No samples were submitted to this office for
examination.

FACTS:

     Plain fabric will be imported either from India, Pakistan,
Hong Kong or Korea.  The fabric will then be sent to United Arab
Emirates for cutting, stitching and packing.

ISSUE:

     What is the country of origin of the merchandise at issue?


LAW AND ANALYSIS:

     Section 12.130 of the Customs Regulations (19 CFR 12.130)
sets forth the principles of country of origin for textiles and
textile products subject to Section 204 of the Agricultural Act
of 1956, as amended (7 U.S.C. 1854).


     Pursuant to 19 CFR 12.130(b), the standard of substantial
transformation governs the country of origin determination where
textiles and textile products are processed in more than one
country.  The country of origin of textile products is deemed to
be that foreign territory or country where the article last
underwent a substantial transformation.  Substantial
transformation is said to occur when the article has been
transformed into a new and different article of commerce by means
of substantial manufacturing or processing.
     
     The factors to be applied in determining whether or not a
manufacturing operation is substantial are set forth in 19 CFR
12.130(d)(2).  The following are considered:

     (i)   The physical change in the material or article;

     (ii)  The time involved in the manufacturing or processing;

     (iii) The complexity of the manufacturing or processing;

           (iv)  The level or degree of skill and/or technology
required in the manufacturing or                             
processing operations;

     (v)  The value added to the article or material;  

     Section 12.130(e)(1) describes manufacturing or processing
operations from which an article will usually be considered a
product of the country in which those operations occurred:  

     (i)  Dyeing of fabric and printing when accompanied by two
or more of the following            finishing operations:
bleaching, shrinking, fulling, napping, decating, permanent       
                       stiffening, weighting, permanent
embossing, or moireing; 
 
     (ii)  Spinning fibers into yarn;

     (iii) Weaving, knitting or otherwise forming fabric;

     (iv) Cutting of fabric into parts and the assembly of those
parts into the completed             article; or
     
     (v)  Substantial assembly by sewing and/or tailoring of all
cut pieces of apparel articles           which have been cut from
fabric in another foreign territory or country, or               
insular possession, into a completed garment (e.g., the complete
assembly of all cut            pieces of suit-type jackets, suits
and shirts).




     In determining the country or origin for pillow cases,
Customs refers to Belcrest Linens v. United States, 741 F.2d
1368, (Fed. Cir. 1984).  The court held that a bolt of woven
fabric that was manufactured, stenciled with embroidery, and
imprinted with lines of demarcation in China prior to being sent
to Hong Kong where the fabric was cut, sewn into pillow cases,
and packaged, was subject to its last substantial transformation
in Hong Kong.  Thus, applying the court's rationale to the
instant scenario, it appears that the fabric which will be cut
and sewn into pillow cases in United Arab Emirates will undergo
its last substantial transformation in that country.
(See, HQ 955779, dated May 12, 1994, and HQ 952909, dated April
12, 1993, wherein the country of origin of pillow cases is also
discussed).

HOLDING:

     The country of origin of the submitted pillow cases is
United Arab Emirates.  It is at the cutting and sewing process in
United Arab Emirates that the fabric last undergoes a substantial
transformation and is transformed into new and different articles
of commerce.  As this constitutes a substantial transformation of
that fabric, United Arab Emirates is the country of origin for
the subject pillow cases.      
     
     The holding set forth above applies only to the specific
factual situation and merchandise identified in the ruling
request.  This position is clearly set forth in Section
177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)).  This
section states that a ruling letter is issued on the assumption
that all of the information furnished in the ruling letter,
either directly, by reference, or by implication, is accurate and
complete in every material respect.  

     Should it be subsequently 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.  In the event there is a change in the facts
previously furnished this may affect the determination of country
of origin.  Accordingly, 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