CLA-2 CO:R:C:T 953255 jb
Mr. Frederick Kuper Jones
Phoenix Dye Works
4755 West 150th Street
Cleveland, Ohio 44135
RE: Country of origin of yarn; 19 CFR 12.130; spinning of fibers
results in substantial transformation
Dear Mr. Jones:
This is in response to your letter, dated January 18, 1993,
requesting a country of origin determination for yarn
manufactured in Brazil, further processed in Uruguay and
ultimately imported into the United States. Samples were
submitted to this office for examination.
FACTS:
You intend to import a singles cotton yarn, manufactured in
Brazil, into Uruguay. In Uruguay the singles yarn will undergo
the following operations before it is shipped and imported into
the United States:
1. processing the singles yarn into a two or three ply yarn,
and
2. dyeing.
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 prior to
importation into the U.S. in that foreign territory or country,
any of the following:
(ii) Spinning fibers into yarn;
Section 12.130(e)(2) of the Customs Regulations states that
an article or material usually will not be considered a product
of a particular foreign territory or country by virtue of merely
having undergone any of the following:
(v) Dyeing and/or printing of fabrics or yarns.
The yarn produced in Brazil is a spun singles carded cotton
yarn. The yarn produced in Uruguay is a plied carded cotton
yarn. Though the original Brazilian yarn is a natural color and
the processed Uruguayan yarn is colored, both yarns fit under the
general commercial designation of "yarn". That is, the
processing done in Uruguay does not change the fundamental
character or commercial designation of the yarn.
Customs has been consistent in its determination that
twisting and plying operations are "simple assembly" operations
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), in comparison to the complex process of
spinning fiber into yarn. In addition Customs has also long held
that neither dyeing alone nor a combination of simple processes
would effectuate a change in country of origin (See e.g.,
HQ 952574, dated April 5, 1993).
HOLDING:
The country of origin of the subject yarn is Brazil. It is
in Brazil, where the spinning of fibers into yarn occurs, which
effectuates a substantial transformation.
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