HQ 086834: Country of origin of sports towels

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 086834

                                   November 15, 1990

            CLA-2 CO:R:C:G 086834 DRR

            CATEGORY: Classification

            Mr. William J. Le Clair
            Trans-Border Customs Services, Inc.
            One Trans-Border Drive
            P.O. Box 800
            Champlain, New York 12919

            RE:  Country of origin of sports towels

            Dear Mr. Le Clair:

                 This is in reference your letter, dated March 12, 1990,
            requesting, on behalf of Leader Manufacturing, Inc., a
            determination as to the country of origin of certain sports
            towels.

            FACTS:

                 The merchandise at issue are sports towels made of highly
            absorbent cellulose material.  The fabric will be imported from
            West Germany to Canada in rolls approximately 24 inches wide by
            500 feet in length.  The material will be cut to towel size of
            12 inches by 14 inches.  The company logo will be printed on
            each towel, which will then be rolled and placed in plastic
            tubing for marketing.  The packaging is made in Canada.

            ISSUE:

                 What is the country of origin of the sports towels.

            LAW AND ANALYSIS:

                 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 United States, shall be a product of




















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            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 67, that where fabric which is readily
            identifiable as being intended for a particular commercial use
            (e.g. towelling or bed linen material) is merely cut to length
            or width, with edges then either hemmed or overlocked, the
            country which produced the fabric is the country of origin, not
            the country where the fabric was cut.  The Decision also
            states, at page 66, that finishing operations short of a
            combination of both dyeing and printing together with a least
            two other major finishing operations will not result in a
            substantial transformation of the fabric.  The cutting,
            printing and packaging operations performed in Canada are
            insufficient to constitute a substantial transformation.
            Therefore, the sports towels in question are considered to be a
            product of West Germany.

            HOLDING:

                 The country of origin of the merchandise at issue is West
            Germany.


                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division