Bones - a fabrication by a city in the country (7)

'bones' is the definition.
The answer and definition can be both body parts as well as being plural nouns.
Perhaps they are linked in a way I don't understand?

'a fabrication by a city in the country' is the wordplay.
'a fabrication' becomes 'fib' (I can't explain this - if you can you should believe this answer much more).
'by' is a charade indicator (letters next to each other).
'a city' becomes 'LA' (Los Angeles).
'in the' is an insertion indicator.
'country' becomes 'U.S.' (United States).
'la' put inside 'us' is 'ulas'.
'fib'+'ulas'='FIBULAS'

Can you help me to learn more?