CLA-2 CO:R:C:T 950789 SK
Vinod Shantilof
Wajilam Exports (Singapore) Private Limited
63 Robinson Road
P.O. Box 632
Singapore 9012
RE: Classification of surgical towels; country of origin;
6307, HTSUSA; cutting, sewing and finishing of fabric in
Singapore does not constitute substantial transformation
under 19 CFR 12.130
Dear Mr. Shantilof:
This is in response to your letter of November 18, 1991,
requesting a binding ruling addressing the tariff classification,
country of origin and quota/visa status of surgical towels.
FACTS:
The goods at issue are surgical towels made of textile
fabric. The rolls of fabric are manufactured in India or
Pakistan and are further processed in Singapore. In Singapore
the fabric is inspected, cut to size and each piece is then
stitched on all four edges. The towels are then folded and
packed into bags for export to the United States.
ISSUE:
What is the proper classification of the surgical towels under
the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA)?
What is the country of origin of the subject merchandise?
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LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that the classification of articles is determined
according to the terms of the headings and any relative section
or chapter notes.
Heading 6307, HTSUSA, provides for other made up articles.
Customs has previously determined that surgical towels are
classifiable within this section of the Nomenclature. See
Headquarters Ruling Letters (HRL's) 087639 (10/26/90), HRL 087477
(8/30/90) and HRL 086132 (2/22/90).
Section 12.130(b) of the Customs Regulations (19 CFR
12.130(b)) 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.
Your attention is directed to Section 12.130(e) of the
Customs Regulations which sets forth criteria which aid in
determining whether an article has been subjected to certain
manufacturing or processing operations which serve to
substantially transform an article into a new and different
article of commerce. These are as follows:
(i) Spinning fibers into yarn;
(ii) Weaving, knitting or otherwise forming fabric;
(iii) Cutting of fabric into parts and the assembly of those
parts into the completed article; or
(iv) Substantial assembly by sewing and/or tailoring of all
cut pieces of apparel articles ... . [emphasis added]
The surgical towels at issue are "formed" in India or
Pakistan. None of the manufacturing processes set forth above
take place in Singapore. The fabric is cut in Singapore, and the
pieces are then stitched on all four sides, but this in itself is
insufficient to warrant a finding that the articles have been
substantially transformed. See Headquarters Ruling Letter (HRL)
086132, dated February 22, 1990, in which Customs ruled that
surgical towels made from Hong Kong origin fabric, and exported
to Honduras for cutting, washing, seaming, folding and packaging,
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were not of Hong Kong origin because those operations were deemed
insufficient "to perfect a change in the country of origin". See
also HRL 087477 (8/30/90); HRL 087639 (10/26/90); HRL 088245
(3/26/91).
Customs Regulations 12.130(e)(2) states that "an article or
material usually will not be considered to be a product of a
particular foreign territory or country, or insular possession of
the U.S., by virtue of merely having undergone ... the following:
(ii) Cutting to length or width and hemming or overlocking
fabrics ... ;
(iii) Trimming and/or joining together by sewing, looping,
linking ...
As mandated by the above regulation, the cutting and sewing
process which takes place in Singapore does not support a finding
that the articles at issue have been substantially transformed.
Accordingly, the surgical towels are deemed products of India or
Pakistan as that is where the fabric is formed and the articles
last undergo a substantial transformation.
HOLDING:
The subject merchandise is classifiable under subheading
6307.90.8610, HTSUSA, which provides for "other made-up articles,
including dress patterns: other: other: surgical towels ... .
The applicable rate of duty is 7% ad valorem and the textile
category is 369.
The country of origin of the subject merchandise is India or
Pakistan.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that your client check, close to the time of shipment,
the Status Report on Current Import Quotas (Restraint Levels), an
internal issuance of the U.S. Customs Service, which is updated
weekly and is available at your local Customs office.
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Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification), and the
restraint (quota/visa) categories, your client should contact its
local Customs office prior to importing the merchandise to
determine the current applicability of any import restraints or
requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division