HQ 086822: Duty; Country of Origin; Yarn

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 086822

                                    June 27, 1990

          CLA-2 CO:R:C:G 086822 DRR

          CATEGORY: Classification

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

          RE: Duty; Country of Origin; Yarn

          Dear Mr. Poon:

               This is in reply to your letter dated March 21, 1990, in
          which you inquired further as to the dutiable status and country
          of origin of yarns shipped from various countries to Taiwan and
          Hong Kong for processing.

               As we have explained to you in our previous correspondence,
          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.

               Treasury Decision (T.D.) 85-38, published March 5, 1985,
          states, at page 66, that dyeing or printing of fabrics and yarns,
          or one or more finishing operations on yarns, fabrics, or
          garments, such as showerproofing, superwashing, bleaching,
          decating, fulling, shrinking mercerizing, or similar operations,
          will not usually result in a substantial transformation.

               Our previous correspondence also informed you that, 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.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division