HQ 087338: Country of origin of diapers

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 087338

                                    August 22, 1990





            CLA-2 CO:R:C:G  087338 DRR

            CATEGORY:  Classification

            TARIFF NO.: 6209.20.5040

            Ms. Gloria M. Columbe
            A.N. Deringer, Inc.
            30 West Service Road
            Champlain, New York 12919-9703

            Re:  Country of origin of diapers

            Dear Ms. Columbe:

                 This is in response to your letter of May 31, 1990, in
            which you requested, on behalf of Emval Creations, Inc., a
            country of origin determination for diapers under the
            Harmonized Tariff Schedule of the United States Annotated
            (HTSUSA).

            FACTS:

                 The merchandise at issue is a 100 percent cotton flannel
            diaper fabricated in Canada from fabric made in China.  The
            fabric is woven in China from 100 percent cotton yarn.  The
            fabric is shipped to Canada in either flat fold form or in
            rolls.  In Canada, the fabric is marked and cut to length and
            width.  It is then cut in half and the two ply fabric sewn on
            all four sides to form diapers.  The diapers are inspected,
            trimmed of excess threads, then folded manually, packaged by
            the dozen and packed in cartons for shipping.  According to
            your submission, the cost of the fabric is $3.58 per dozen and
            the production costs are $4.50 per dozen.

            ISSUE:

                 Whether the diapers in question are a product of Canada or
            China for duty purposes.

















                                          -2-


            LAW AND ANALYSIS:

                 The United States-Canada Free Trade Agreement of 1988
            (FTA) is set out in General Note 3(c)(vii) to the HTSUSA.  The
            agreement provides a special rate of duty for goods originating
            in the territory of Canada (General Note 3(c)(vii)(A)).
            General Note 3(c)(vii)(B) states that goods imported into the
            United States are eligible for treatment as goods originating
            in the territory of Canada" if they have been transformed in
            the territory of Canada and/or the United States so as to be
            subject to a change in tariff classification in Canada as set
            forth in General Note 3(c)(vii)(R).  General Note
            3(c)(vii)(R)(11)(oo) provides that, in order to be considered
            goods originating in Canada, the goods must change to any
            heading of chapter 62 from any heading outside that chapter
            other than headings 5204 through 5212.  The fabric from which
            the diapers are made would be classified in heading 5208 and
            the diapers themselves classified in chapter 62.  This would
            appear to disqualify the articles here in question.  However,
            paragraph (qq) of the General Notes states that,
            notwithstanding rule (oo), articles provided for in chapters 61
            and 62 that are both cut and sewn in Canada from fabric
            obtained from a third country and that meet other applicable
            conditions for preferred tariff treatment under subdivision (c)
            (vii) are subject to special rates of duty under the FTA.
            Accordingly, the diapers are eligible for treatment as goods
            originating in the territory of Canada.

                 Classification of merchandise under the HTSUSA is in
            accordance with the General Rules of Interpretation (GRI),
            taken in order.  GRI 1 provides that classification shall be
            determined according to the terms of the headings and any
            relative section or chapter notes.  Heading 6209, HTSUSA,
            provides for babies' garments and clothing accessories.
            Subheading 6209.20.5040, HTSUSA, provides for diapers.

            HOLDING:

                 The diapers in question are classified under subheading
            6209.20.5040, HTSUSA.  The diapers in question are goods
            originating in the territory of Canada, and are entitled to a
            special duty rate of 7.9 percent under the United States-Canada
            Free Trade Agreement (FTA) upon compliance with all applicable
            regulations. The textile category is 239.  

















                                          -3-


                 Due to the changeable nature of the statistical annotation
            and the restraint (quota/visa) categories applicable to textile
            merchandise, you should contact the local Customs office prior
            to importation of this merchandise to determine the current
            status of any import restraints or requirements.

                 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 effect 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






























            drimmer library / 087338
            1cc: A.D., N.Y. Seaport
            DRimmer:za:02/28/90