HQ 954668: Country of origin determination for fitted sheet, flat sheet, pillowcase and duvet cover; substantial transformation; 19 CFR 12.130; Belcrest Linens v. U.S., 741 F.2d 1368, Fed. Cir. 1984

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 954668
                                 
                        November 18, 1993

CLA-2  CO:R:C:T  954668  jb

CATEGORY:  Classification

Mr. Sudhir Mehta
Textile Concepts Limited
9 East Gate Road
Long Valley, NJ 07853

RE:  Country of origin determination for fitted sheet, flat
     sheet, pillowcase and duvet cover; substantial
     transformation; 19 CFR 12.130; Belcrest Linens v. U.S.,
     741 F.2d 1368, Fed. Cir. 1984

Dear Mr. Mehta:

     This is in response to your letter dated July 18, 1993,
requesting a country of origin ruling on impending shipments of
bedsheets and duvet covers.  Samples were received by this office
for examination.

FACTS:

     The merchandise consists of 100 percent cotton or 50 percent
cotton/50 percent polyester printed sheeting purchased by the
British manufacturer from Pakistan.  The submitted samples
consist of a twin size sheet set (one top sheet, one bottom sheet
and one pillowcase), one quilt cover (54 inches by 78 inches) and
what you refer to as a matching pillowcover (19 inches by 29
inches).  Examination of the sample pillowcover reveals that it
is a pillowcase.

     You state that the sheeting undergoes the following
processes in the United Kingdom:

     Flat Sheet

     - cutting and hemming on all four sides
     - piping at the top hem
     - ironing, folding and labelling
     - packing with cardboard inserts into plastic packets


     Fitted Sheet

     - cutting into lengths on all four sides
     - cutting on the diagonal at the four corners and stitching
       to fit the mattress
     - hemming on all sides
     - stitching an elastic at the four corners
     - ironing, folding and labelling
     - packing

     Pillowcase

     - cutting to desired specifications
     - folding and sewing
     - ironing, folding and labelling
     - packing

     Duvet Cover

     - cutting to desired specifications
     - sewing to form a shell to accommodate a comforter
     - sewing snaps or a zipper onto the open end
     - ironing, folding and labelling
     - packing with cardboard inserts into plastic packets

ISSUE:

     What is the country of origin for the bedsheet sets and
duvet cover?

LAW AND ANALYSIS:

     Country of origin determinations for textile products are
subject to Section 12.130, Customs Regulations (19 CFR 12.130
CFR).  Section 12.130 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) sets forth criteria for determining
whether a substantial transformation of a textile product has
taken place.  This regulation states these criteria are not
exhaustive; one or any combination of criteria may be
determinative, and any 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.

     Section 12.130(d)(2) states that for 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
    (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 involved
     (v) The value added to the article or material
     
       As was stated in both Headquarters Ruling (HQ) 954229,
dated September 2, 1993 and HQ 953566, dated June 21, 1993,
regarding similar items, in order for a substantial
transformation to result within the purview of Section 12.130,
there must be additional processing beyond the cutting of fabric
to length and width that is sufficiently complex as to constitute
a substantial transformation operation.  Merely cutting fabric on
two sides, hemming and adding elastic is a simple processing
operation.  

     When making a determination as to whether fabric used to
make sheets has been substantially transformed, the minimum
processing required is cutting the fabric to length and width
(i.e., cutting on at least three sides). Only after the fabric
has been cut in both directions (length and width) does Customs
assess any additional processing, degree of skill, value and
amount of time expanded to manufacture the sheets to make a
determination as to whether these additional considerations
amount to a substantial manufacturing operation.

     In regard to the flat sheets, in Headquarters Ruling Letter
(HRL) 952909, dated April 12, 1993, Customs concluded that fabric
that had been cut to length and width, coupled with the
additional processing required to attach piping to flat sheets
amounted to a substantial transformation.  In the instant case,
as the fabric is similarly cut to length and width in addition to
featuring piping as an additional processing operation, a
determination for substantial transformation may be made.


       In HRL 953477, dated May 18, 1993, Customs distinguished
fitted sheets that had merely been cut on two sides from fitted
sheets that had been cut both to length and width.  Customs
applied the criteria stipulated in Section 12.130 and concluded
that merely cutting fabric to length, hemming and adding elastic
to the corners did not amount to a substantial manufacturing
operation.  In evaluating the processing involved in the
manufacture of the fitted sheets that had been cut both to length
and width, Customs decided that the processing involved amounted
to a substantial manufacturing operation.  In the instant case,
as the fabric has been cut to length and width, in addition to
the sewing operation which adds the elastic to the corners, the
combined operations amount to a substantial transformation.
                                                  
     In determining the country of origin for pillowcases,
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 pillowcases and
packaged, was subject to its last substantial transformation in
Hong Kong.  Similarly, with the subject merchandise, substantial
transformation occurs in the country where the fabric is cut and
sewn.

     Similar to the pillowcases, in regard to the duvet cover,
substantial transformation occurs at the time of cutting and
sewing (and the addition of a zipper or snaps).  These operations
confer country of origin in the country in which they are
performed.

HOLDING:

     As both the flat and fitted sheets at issue are cut to
length and width, in addition to other processing operations in
the United Kingdom, they undergo their last substantial
transformation in the United Kingdom.  Consequently, the country
of origin of these bedsheets is the United Kingdom.

     Based on the foregoing, the pillowcase and the duvet cover
at issue are subject to a substantial manufacturing operation in
the country in which they are cut and sewn.  Therefore, country
of origin is conferred in the United Kingdom.

     The holding set forth above applies only to the specific
actual 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