Country of origin of bleached and dyed woven fabric

HQ 955430 January 10, 1994 CLA-2:CO:R:C:G 955430 PR CATEGORY: Classification Mr. Ong Keng Yong Embassy of Singapore 3501 International Place NW Washington, D.C. 20008 RE: Country of origin of bleached and dyed woven fabric Dear Mr. Yong: This is in reply to your letter of November 18, 1993, concerning the country of origin of certain fabric. Our ruling on the matter follows. FACTS: The submitted facts are: The manufacturer uses imported griege sateen fabrics in bale form. In his factory, the fabrics are weighed, bleached and dyed to the required colours. After which, the fabrics are dried and set to the required width by the processes of widening and stiffening. Defective fabric is cut out and discarded. The sateen fabrics are then measured and cut to 1-inch width which are then weighed and packed in roll form for export. We assume for the purposes of this ruling that the above described processes occur in Singapore and that the fabric was woven in another country. ISSUE: The issue presented is whether the processing in Singapore converts the fabric to a product of that country. LAW AND ANALYSIS: Section 12.130, Customs Regulations (19 CFR 12.130), provides, in pertinent part, as follows:  -2- (b) Country of origin. For the purpose of this section * * * a textile or textile product, subject to section 204, 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. * * * (d) Criteria for determining country of origin. The criteria in paragraphs (d)(1) and (2) of this section shall be considered in determining the country of origin of imported merchandise. These criteria are not exhaustive. One or any combination of criteria may be determinative, and additional factors may be considered. (1) 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. (2) 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.  -3- When weighing all the above factors, it is our view that the processing in Singapore has not resulted in a substantial transformation. Fabric was imported into Singapore and the processing there did not, in our view, change that fabric into a new and different article. In addition, the processing which the fabric underwent in Singapore is not deemed to be substantial. Following an example contained in 12.130, we have issued numerous rulings that a substantial transformation may occur where fabric has been both dyed and printed, and has been subjected to two other substantial processes (e.g. bleaching and shrinking). Here, the processing of the instant fabric in Singapore falls far short of the processing of fabric which we have ruled to constitute a substantial transformation of that fabric. HOLDING: The fabric remains a product of the the country where it was woven. Section 177.9(b)(1), Customs Regulations (19 CFR 177.9 (b)(1), states that a ruling 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. Accordingly, the holding set forth above applies only to the specific factual situation and the merchandise identified in the ruling request. 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. If there is a change in the facts furnished, the holding in this ruling may be affected. In such an event, 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