CLA-2 CO:R:C:T 952574 jb
Mr. Ken Lai
California Thread & Supply Inc.
1827 S. Broadway
Los Angeles, CA 90015
RE: Country of origin of sewing thread; Section 12.130, CFR;
spinning of fibers results in substantial transformation
Dear Mr. Lai:
This is in response to your letter, dated
September 8, 1992, requesting a country of origin determination
for sewing thread you intend to import from Mexico.
FACTS:
You intend to import polyester yarn from an unspecified
country (which we will refer to as "Country A") into Mexico,
where it will undergo the following processes:
1. dyeing
2. dressing the yarn with a silicone finish to smooth the
surface
3. winding the yarn onto 6,000 yard and 12,000 yard cones
4. labeling the cones
5. packing and boxing
As you letter did not provide us with certain requisite
details regarding both the description and manufacturing
processes of the merchandise at issue, we have made certain
assumptions. First, because you refer to the yarn as "sewing
thread", we assume we are dealing with a plied yarn. Secondly,
since spinning and plying are not mentioned in your letter, we
assume that the yarn will already have undergone spinning,
twisting and plying operations before its importation into
Mexico.
ISSUE:
What is the country of origin of the submitted merchandise?
LAW AND ANALYSIS:
Section 12.130 of the Customs Regulations (19 CFR 12.130),
sets forth the principles of country of origin for textiles and
textile products subject to section 204 of the Agricultural Act
of 1956, as amended (7 U.S.C. 1854).
Pursuant to 19 CFR 12.130(b), the standard of substantial
transformation governs the country of origin determination where
textiles and textile products are processed in more than one
country. The country of origin of textile products is deemed to
be that foreign territory or country where the article last
underwent a substantial transformation. Substantial
transformation is said to occur when the article has been
transformed into a new and different article of commerce by means
of substantial manufacturing or processing.
The factors to be applied in determining whether or not a
manufacturing operation is substantial are set forth in 19 CFR
12.130(d). Section 12.130(d)(1) states that 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.
Section 12.130(e)(1) of the Customs Regulations states that
an article or material usually will be a product of a particular
foreign territory or country when it has undergone in that
country, prior to importation into the U.S., any one of the
following:
(ii) spinning fibers into yarn
Section 12.130(e)(2) of the Customs Regulations states
factors which are not considered substantial manufacturing or
processing operations, among which, include:
(i) Simple combining operations, labeling, pressing,
cleaning or dry cleaning, or packaging operations, or
any combination thereof:
(iv) One or more finishing operations on yarns, fabrics, or
other textile articles, such as showerproofing,
superwashing, bleaching, decating, fulling, shrinking,
mercerizing, or similar operations; or
(v) Dyeing and/or printing of fabrics or yarns.
Except for winding the sewing thread onto cones, the
operations you mention in your letter seem to be specifically
provided for in Section 12.130(e)(2), i.e., as factors which are
not considered substantial manufacturing or processing
operations.
Because the dyeing, finishing, winding and packaging
operations in Mexico do not effect a substantial transformation
on the yarn, the yarn is not considered to be a product of
Mexico.
HOLDING:
The operations performed in Mexico do not result in a
substantial transformation of the yarn and accordingly, do not
confer country of origin.
As your letter did not provide us with sufficient
information, we cannot make a specific determination as to what
country is the country of origin. At this time we can only
determine that the country of origin is not Mexico.
The holding set forth above 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 the ruling letter,
either directly, by reference, or by implication, is accurate and
complete in every material respect.
Should it be subsequently 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. Accordingly, 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