CLA-2 CO:R:C:G 086523 CB

Mr. Bryce Haynes
The Bibb Company
P. O. Box 4207
Macon, Georgia 31208

RE: Country of Origin of bed linen

Dear Mr. Haynes:

This is in response to your letter of January 17, 1990, requesting a country of origin classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), for duty and marking purposes on bed linen.

FACTS:

The merchandise at issue consists of a three-piece woven bed sheet set which includes one flat sheet, one fitted sheet, and one pillowcase. The merchandise is constructed of a fiber blend of either 60% polyester/40% cotton, or 80% cotton/20% polyester.

According to the information you have provided, the fabric is woven in Pakistan and then shipped to Dubai. In Dubai the fabric will be cut into various lengths for twin, full and queen size and hemmed.

ISSUE:

Whether the processes taking place in Dubai are sufficient to make Dubai the country of origin for duty and marking purposes?

LAW AND ANALYSIS:

Country of Origin

Section 12.130(b), Customs Regulations, provides that a textile product processed in more than one country or territory shall be a product of that country or territory where it last -2-

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.

In addition, Section 12.130(d), Customs Regulations, provides that a new and different article of commerce will usually result from manufacturing or processing operations if there is a change in (1) commercial identity, (2) fundamental character, or (3) commercial use. That provision also states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, we will consider the physical change in the material or article, the time involved, the complexity of the operation, the level or degree of skill and/or technology involved, and the value added to the article in each country or territory. Any one or a combination of these factors may be determinative and other factors may also be considered.

Our regulations further provide that a fabric usually will be a product of the country where it was woven, knitted or otherwise formed into fabric, or where it was dyed and printed and accompanied by two or more other finishing operations. With regard to the subject merchandise, it is Customs position that Pakistan remains the country of origin for the sheets. The weaving, dyeing and printing processes all take part in Pakistan and are sufficient to satisfy the country of origin requirements set forth in the regulations. The operations performed in Dubai, i.e. cutting to length and hemming, do not constitute a substantial transformation for country of origin purposes.

Determination of the country of origin for the pillowcases is governed by the guidelines set forth in Belcrest Linens v. United States (741 F.2d 1368, Fed.Cir. 1984). The Belcrest court held that bolts of fabric which were woven in China and stenciled with an embroidery design, cutting marks, and a scalloped edge before being shipped to Hong Kong where the fabric was cut, the edges were embroidered, the sides sewn together and packaged were pillowcases manufactured in Hong Kong for country of origin purposes. Therefore, in applying the Belcrest rationale to the subject merchandise, Dubai is the country of origin for the pillowcases.

Marking

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides, in general, that all articles of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article -3-

(or container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

In this case, the components of the bed linen package are products of two different countries. The sheets are a product of Pakistan and the pillowcases are a product of Dubai. The bed linen is imported and sold in a retail package. The subject package must indicate the country of origin for both individual items in order to satisfy the statutory marking requirements.

HOLDING:

The subject sheets are a product of Pakistan and the subject pillowcases are a product of Dubai for country of origin purposes.

Sincerely,

John Durant, Director
Commercial Rulings Division