OT:RR:CTF:VS H333407 ARU
Michael Dahm
Cole International
Consulting Manager
Buffalo Office
Grand Island, NY 14072
RE: Country of Origin Marking; proMESH
Dear Mr. Dahm,
This is in response to your correspondence dated March 1, 2023, in which you request a
ruling on behalf of your client, Variperm Canada Ltd. Your request concerns the country of
origin for marking purposes. Your request, submitted as an electronic ruling request, was
forwarded to this office from the National Commodity Specialist Division for response.
You have asked that certain information submitted in connection with this request be treated
as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the
request for confidentiality is approved. The information designated as confidential in your request
and contained within brackets in the ruling will not be released to the public and will be withheld
from published versions of this ruling.
FACTS:
The merchandise in question is a 4.5 inch proMESH, described as a cost-effective sand
control solution that is designed to filter a high percentage of poorly sorted sands in
unconsolidated formations, classifiable under subheading 8421.29.00, Harmonized Tariff
Schedule of the United States (HTSUS). It consists of a base pipe – either slotted or perforated –
support core, filter media, drainage layer and protective shroud. The filter media is the core of
the sand control mechanism and can be engineered to meet customer’s specific reservoir
requirements.
According to your submission, the proMesh will be made in Canada from a Country A
[XXXXX] mesh jacket classifiable under subheading 8421.99.01, HTSUS, a Country B
[XXXXX] centralizer classifiable in Chapter 73, HTSUS, and L-80 casings from Country C
[XXXXX] or Country D [XXXXX], also classifiable in Chapter 78, HTSUS. The proMESH is
used within the oil and gas industry to filter sand or gravel while allowing fluid to flow through.
The design is tailored to resist plugging/clogging by fines and clay particles commonly found in
oil bearing formations. The filter is engineered to meet customer’s specific reservoir
requirements. The proMESH is manufactured in Canada, as described below.
To create the mesh jackets, the manufacturer in Country A utilizes several Country A
components including the end ring, perforated outer shroud, filtration mesh, filtration
enhancement mesh and perforated inner shroud. The first step is to wrap the first filtration
enhancement layer onto the inner perforated shroud. The second step is to wrap the first
filtration mesh layer on top of the first assembly. This is followed by wrapping the second
filtration enhancement layer on top of the step two assembly. The fourth step is to wrap the
second filtration mesh layer on top of the step 3 assembly. Next, is installing the perforated
outer shroud onto the step four assembly. All layers are then swaged together as a cartridge.
Finally, the end rings are welded on to both ends of the assembly.
The Country B centralizer is purchased with two slip-on stop rings and a 4.5-inch straight
vane solid body centralizer.
The L-80 grade casings are purchased from either Country C or D.
In Canada, the manufacturer will gather all the necessary materials including the casings,
centralizers, and mesh jackets. The casings will be tallied and the pattern for the holes will be
identified on the pipe. A high-density drill will be utilized to drill over 2,500 holes on the pipe
with a special pattern that minimizes the strength reduction of the casing due to the removal of
the material that occurs from drilling the holes. Immediately after, the workers will clean the
pipe using a machine that eliminates any debris or chips. The next step is to install the mesh
jackets and centralizer, which is completed with an in house designed machine that pushes the
screen on with a tight gap tolerance. The pieces are then welded together. Finally, the goods are
inspected for final shipping.
ISSUE:
What is the country of origin of the proMesh sand control solution for purposes of
country of origin marking?
LAW & ANALYSIS:
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304),
provides that, unless excepted, every article of foreign origin (or its container) imported into the
U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature
of the article (or its container) will permit, in such a manner as to indicate to the ultimate
purchaser in the U.S. the English name of the country of origin of the article.
The “country of origin” is defined in 19 CFR 134.1(b) as “the country of manufacture,
production, or growth of any article of foreign origin entering the United States. Further work or
material added to an article in another country must effect a substantial transformation in order to
render such other country the 'country of origin' within the meaning of this part. However, for a
good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter
(hereinafter referred to as the part 102 Rules) will determine the country of origin.”
Pursuant to section 102.0, the rules set forth in §§ 102.1 through 102.18 and 102.20
determine the country of origin for marking purposes with respect to goods imported from
Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country
of origin of a good for marking purposes, with the exception of textile goods which are subject to
the provisions of 19 CFR. § 102.21. See 19 CFR § 102.11. Applied in sequential order, the
required hierarchy establishes that the country of origin of a good is the country in which:
(a)(1) The good is wholly obtained or produced;
(a)(2) The good is produced exclusively from domestic materials; or
(a)(3) Each foreign material incorporated in that good undergoes an applicable change in
tariff classification set out in § 102.20 and satisfies any other applicable requirements of
that section, and all other applicable requirements of these rules are satisfied.
Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case
because the subject proMESH is neither wholly obtained or produced or produced exclusively
from “domestic” materials. 19 CFR § 102.11. Because the analysis of sections 102.11(a)(1) and
102.11(a)(2) does not yield a country of origin determination, we look to section 102.11(a)(3).
Pursuant to 19 CFR §102.11(a)(3), the country of origin of a good is the country in which each
foreign material incorporated in that good undergoes an applicable change in tariff classification
as set forth in 19 CFR §102.20 and satisfies any other applicable requirements of that section.
The applicable tariff shift requirement in section 102.20 for the proMESH of subheading
8421.29, HTSUS, is:
A change to subheading 8421.11 through 8421.39 from any other subheading, including
another subheading within that group.
The foreign material in this case consists of the mesh jackets, centralizers, and casings.
The mesh jackets are classified in 8421.99.01, HTSUS, while the centralizers and casings are
classified in Chapter 73. Accordingly, the tariff shift requirement of section 102.11(a)(3) is met.
Therefore, we find that the proMESH is a product of Canada for country of origin marking
purposes.
HOLDING
Based on the information provided, the proMesh sand control solution will be classified
in subheading 8421.29.00, HTSUS, and the country of origin for marking purposes will be
Canada.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the
assumption that all of the information furnished in connection with the ruling request and
incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and
complete in every material respect. The application of a ruling letter by a [CBP] field office to
the transaction to which it is purported to relate is subject to the verification of the facts
incorporated in the ruling letter, a comparison of the transaction described therein to the actual
transaction, and the satisfaction of any conditions on which the ruling was based.”
A copy of this ruling letter should be attached to the entry documents filed at the time this
merchandise is entered. If the documents have been filed without a copy, this ruling should be
brought to the attention of the CBP officer handling the transaction.
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch