HRL 086665 revoked. HRL 087138 revoked. HRL 952703revoked. Diapers.

HQ 953677 May 17, 1993 CLA-2 CO:R:C:T 953677 HP CATEGORY: Classification Mr. Allan Gordon President Performance Trading Inc. 520 South Lafayette Park Place Suite 200 Los Angeles, CA 90057 RE: HRL 086665 revoked. HRL 087138 revoked. HRL 952703 revoked. Diapers. Dear Mr. Gordon: This is in response to your letter of March 31, 1993, AP11308, in which you requested that we confirm the effectiveness of previous ruling letters issued to you. Those ruling letters concerned the country of origin determination of diapers, produced from fabric created in the People's Republic of China. After reviewing those rulings, we have determined that they were issued in error. FACTS: The merchandise at issue consists of children's diapers produced from 100% woven Chinese fabric. In HRL 086665 of March 23, 1990, we ruled that the cutting and folding operations taking place on that fabric substantially transformed the Chinese fabric into diapers of either Zimbabwe or Mozambique. In HRL 087138 of June 5, 1990, we essentially extended this analysis to include the countries of lesotho and Namibia. In HRL 952703 of November 2, 1992, we informed you that the above-cited rulings were still in effect, and that you were "free to cite [them] as authority in the disposition of transactions involving the same circumstances." On or about March 24, 1993, the District Director, Charleston, South Carolina, detained 7,680 dozen diapers you were attempting to import under the above-cited rulings. Following a line of recent country of origin of diaper decisions issued to other parties, the District Director was of the opinion that your diapers were constructed of fabric intended for use as diapers. On March 29, 1993, you forwarded to this office samples of the diapers detained in Charleston. In your letter of the same date, you stated that "these are the same diapers which we submitted to your office ref. our Letter AP5412 of March 8, 1990." As we noted above, your letter of March 8, 1990, resulted in our issuance of HRL 086665. We have examined the Charleston diaper samples. They are constructed of fabric composed of a series of double woven sections separated by single woven sections, forming pockets throughout the width of the cloth. The weave type varies as the fabric alternates between single and double weave ISSUE: Whether the diapers at issue in the above-cited HRLs are considered to be products of "Country 2" for quota/visa purposes? LAW AND ANALYSIS: Customs has long held that producing diapers from plain cotton fabric suitable for multiple uses is considered a substantial transformation when the manufacturing and processing operations include, inter alia, cutting to length and width or length alone, complex folding to create the diaper's unique multi-layer middle portion, hemming and/or overlocking the edges, and finishing and packaging. HRL 950849 of March 24, 1992; HRL 953078 of January 25, 1993. Contra HRL 087950 of January 9, 1991; HRL 088321 of March 7, 1991 (merely cutting fabric into squares and hemming insufficient to constitute substantial manufacturing process). In the instant case, however, the alternating single and double woven sections of the cloth facilitate the cutting, folding and sewing of the fabric into a diaper. The double woven sections are manufactured in this way to increase absorbency and prevent leakage throughout the diaper. The alternating single woven sections provide a more dense and solid base for sewing the diaper. It is our opinion that the weave structure of the fabric confirms the fact that the material is intended for use as diapers. The changing of the weaves is performed at additional cost and for the specific purpose of creating markers for folding. As a result, no substantial transformation takes place. The diapers are therefore considered a product of China. HRLs 086665, 087138 and 952703 are revoked. HOLDING: As a result of the foregoing, the diapers at issue in HRLs 086665, 087138 and 952703 are products of China. In order to insure uniformity and eliminate uncertainty, we are revoking HRL 086665 of March 23, 1990, HRL 087138 of June 5, 1990, and HRL 952703 of November 2, 1992, pursuant to 19 C.F.R. 177.9(d)(1), to reflect the above country of origin determination, effective with the date of this letter. A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, John Durant, Director Commercial Rulings Division