CLA-2 CO:R:C:T 088545 CRS
Mr. Tony Dix
Commercial Director
Edward Hall, Ltd.
Botany Works
Whaley Bridge
Stockport SK12 7DQ
England
RE: Processing of cotton waste including bleaching and scouring
to produce purified surgical cotton constitutes a substantial
transformation.
Dear Mr. Dix:
This is in reply to your letters of December 11, 1990, and
January 11, 1991, concerning the country of origin of bleached
cotton waste. No sample was provided.
FACTS:
The merchandise at issue is bleached cotton waste of which
Edward Hall produce various qualities such as Bleached Comber,
Bleached Cotton Strips, Bleached Rovings and Sliver. The raw
material for the bleached waste, cotton waste fibers, are
imported from a number of countries, including France, Germany,
Italy, Holland, Argentina, Brazil, Pakistan, Japan, Thailand, the
Soviet Union, China and the United States.
In the United Kingdom, the waste fibers are processed so as
to produce bleached cotton suitable for use as surgical cotton.
The waste fibers are first mechanically cleaned to remove dust
and soil. The fibers are then chemically cleaned or scoured and
then rinsed to remove proteins, natural fats, waxes and sugars,
thereby rendering the waste fibers unsuitable for spinning.
Subsequently, the fibers are bleached to remove natural color,
then pH neutralized. Finally, the fibers are rinsed, washed,
dried, inspected, baled, wrapped and labelled.
As a result of these processes, you state that the cotton
waste fibers are purified, are rendered more absorbent, are
bleached, and change from being convoluted in form to being
partially swollen. Moreover, you state that surgical purified
cotton must meet exacting standards with regard to such factors
as fiber length, nap level, fiber strength, fiber diameter,
degree of absorbency, pH, absence of color.
ISSUE:
Whether the cleaning, scouring and bleaching of cotton waste
fibers in the production of surgical purified cotton constitutes
a substantial transformation of the fibers pursuant to 19 CFR
12.130.
LAW AND ANALYSIS:
Country of Origin
Pursuant to section 12.130, Customs Regulations (19 CFR
12.130), a textile or textile product which consists of materials
produced or derived from, or processed in, more than one foreign
territory or country shall be a product of that foreign territory
or country 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.
Section 12.130(d) establishes criteria for determining
whether an article has been substantially transformed. However,
the criteria set forth in 19 CFR 12.130(d) are not exhaustive;
one or any combination of these criteria may be determinative and
additional factors may be considered.
According to 19 CFR 12.130(d)(2), the following factors are
to be considered in determining whether merchandise has been
subjected to substantial manufacturing or processing operations:
the physical change in the material or article, the time involved
in the manufacturing or processing operations, the complexity of
the operations, the level or degree of skill and/or technology
required, and the value added to the article.
The cotton waste fibers used in the manufacture of surgical
purified cotton are the product of numerous countries. In the
United Kingdom they are subjected to various processes including
cleaning and bleaching. 19 CFR 12.130(e)(2)(iv) provides that an
article or material usually will not be considered a product of a
particular foreign country merely by having undergone one or
more finishing operations such as showerproofing, superwashing,
bleaching, decating, fulling, shrinking, mercerizing or similar
operations. The operations performed on the cotton waste at
issue is little more than a bleaching operation. Thus in light
of the information presented, Customs would not normally consider
the processing operations sufficiently complex to constitute a
substantial manufacturing or processing operation under 19 CFR
12.130(e)(2)(iv).
However, we are advised that the processing operations
significantly increase the absorbency of the finished product as
well as remove impurities, which if they were to remain, would
render the final product unsuitable for use as surgical cotton.
Furthermore, once processed, the fibers are unfit for spinning
and suitable only for surgical applications. In view of these
considerations, Customs is of the opinion that cotton waste
fibers have been substantially transformed.
Classification
Articles are classified under the Harmonized Tariff Schedule
of the United States (HTSUSA) in accordance with the General
Rules of Interpretation (GRIs). GRI 1 provides that the
classification of articles is determined according to the terms
of the headings and any relative section or chapter notes and,
provided the headings or notes do not otherwise require,
according to the remaining GRIs taken in order.
Heading 5202, HTSUSA, provides for cotton waste. According
to The Explanatory Notes (EN), which constitute the official
interpretation of the Harmonized System at the international
level, waste of heading 5202 may contain greasy matter, dust or
other extraneous matter or may have been cleaned, bleached or
dyed. It may be used for spinning or other purposes. EN 52.02,
730. The merchandise at issue has been bleached and cleaned.
Accordingly, the cotton waste is classifiable in heading 5202.
However, cotton waste other than comber waste is subject to
an agricultural quota as provided for in subheading 9904.30.50,
Subchapter IV, Chapter 99, HTSUSA. This includes card strips
made from cotton having a staple length under 30.1625 mm (1 3/16
inches), lap waste, sliver waste and roving waste. Cotton waste
from the United Kingdom imported during the twelve month period
beginning September 20th in any year may not be entered for
consumption if it exceeds the aggregate quantity specified in
subheading 9904.30.50. The quota for cotton waste of UK origin
is 653,695 kilograms of which 23,934 kilograms had been utilized
as of April 5, 1991. The quota on cotton comber waste was
suspended indefinitely pursuant to Presidential Proclamation 6228
dated November 13, 1990, 55 Fed. Reg. 47,835.
HOLDING:
The country of origin of the cotton waste fibers at issue is
the United Kingdom.
The cotton waste is classifiable in subheading 5202.99.0010,
HTSUSA, under the provision for cotton waste, other, provided for
in subheading 9904.30.50; or, in subheading 5202.99.0090, HTSUSA,
under the provision for cotton waste, other, other. Cotton waste
classifiable in both of these subheadings may be entered free of
duty; however, cotton waste of subheading 5202.99.0010 is subject
to quota as provided for in subheading 9904.30.50, HTSUSA.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, your importer should contact
their local Customs office prior to importation of this
merchandise to determine the current status of any import
restraints or requirements.
The holding in this ruling 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 affect the
determination of country of origin. In such a case, 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