HQ 087346: Country of origin of bedding; Canadian fabric and Chinese embroidered fabric transformed into bedding in Canada; country of origin for quota purposes is Canada

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 087346

                        October 22, 1990




CLA-2  CO:R:C:G   087346  CC

CATEGORY:  Classification

Mr. Gary C. Cooper
Law Offices of George R. Tuttle
Three Embarcadero Center, Suite 1160
San Francisco, CA 94111

RE:  Country of origin of bedding; Canadian fabric and Chinese
     embroidered fabric transformed into bedding in Canada;
     country of origin for quota purposes is Canada

Dear Mr. Cooper:

     This letter is in response to your inquiry of May 31, 1990,
on behalf of H.K. Enterprises, requesting country of origin
determinations for quota purposes for bedding.  You have
indicated that at this time you are not interested in any
determinations concerning the application of the Canada Free
Trade Agreement to these goods.  Samples were submitted for all
of the articles, except the pillow.

FACTS:

     You have requested country of origin determinations for the
following articles: a pillow case, a pillow sham, a dust ruffle,
a "bed sheet," a duvet cover, and a toss pillow.

     According to your submissions, the submitted merchandise is
composed of Canadian fabric, which makes up the major part of
each article, and Chinese embroidered fabric, which basically
serves as decorative trimming.  The embroidered fabric is
produced in China and shipped to Canada.  In Canada, cutting,
sewing, and assembling operations are performed to produce the
finished articles.  You state that the following operations are
performed in Canada, after the embroidered fabric has arrived:

     1.   The imported product will be unfolded and inspected for
          defects.


     2.   All defects will be repaired, including some simple
          embroidery work.

     3.   The piece good or goods of Canadian origin will be cut
          and trimmed for sewing.

     4.   The piece good or goods will be sewn to the embroidered
          part.

     5.   The product will be pressed.

     6.   The product will be cleaned.

     7.   The product will be folded and packaged for sale.

     8.   The product will be shipped to the United States.

     The pillow case measures approximately 21 inches by 30
inches.  There is a 5 inch piece of embroidery attached to one
side; the remainder of the fabric is Canadian.

     The pillow sham measures approximately 21 inches by 27
inches.  There is a 1 inch piece of embroidery attached to each
side.  The front cover is made of the embroidered fabric; the
back cover is made of Canadian fabric.

     The dust ruffle measures approximately 72 inches by 84
inches.  There is a 14 inch piece of embroidered fabric attached
to 3 sides; the remainder of the fabric is Canadian.

     The article that you have designated as a "bed sheet"
measures approximately 102 inches by 108 inches.  There is a 40
inch piece of embroidered fabric attached to one side; the
remainder of the fabric is Canadian.  Due to the embroidered
fabric, this article would most likely be used as some type of
bed cover and not as a sheet.

     The duvet cover measures approximately 88 inches by 88
inches.  The front cover is made of embroidered fabric; the back
cover is made of Canadian fabric.

     You indicate that there is great deal of physical change in
the merchandise as a result of the manufacturing and processing
operations performed in Canada.  Also, you have provided
information showing that the primary value to the submitted
merchandise is added in Canada.

ISSUE:

     What is the country of origin for quota purposes for the
merchandise at issue?

LAW AND ANALYSIS:

     For quota purposes, Section 12.130 of the Customs
Regulations (19 CFR 12.130) is applicable to the merchandise at
issue.  Section 12.130(b) of the Customs Regulations provides
that a textile product that is processed in more than one country
or territory shall be a product of that country or territory
where it last underwent a substantial transformation.  A 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.

     Section 12.130(d) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place.  This regulation states that
these criteria are not exhaustive; one or any combination of
criteria may be determinative, and additional factors may be
considered.

     Section 12.130(d)(1) states that 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.

     12.130(d)(2) states that 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.

      The physical change and the value added in Canada to the
merchandise at issue are substantial.  In addition, except for
what is done to create the embroidered fabric, all processing
operations, e.g., cutting and sewing, are done in Canada, and
these operations are substantial.  We believe that embroidered
fabric from China and fabric from Canada are transformed in
Canada into bedding, based on your submissions.  Therefore the
last substantial transformation occurs in Canada, and the country
of origin for quota purposes for the merchandise at issue is
Canada.

HOLDING:

     The country of origin for quota purposes for the merchandise
at issue is Canada.

     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 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 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