CLA-2-84:OT:RR:NC:N1:102
Jeffrey Hopkins
Bray International, Inc.
13333 Westland East Blvd
Houston, Texas 77041
RE: The country of origin of butterfly valves for the purpose of 301 Trade Remedies
Dear Mr. Hopkins:
In your letter dated November 5, 2021, you requested a ruling on the country of origin of butterfly valves. A description of the assembly processes was submitted for our review.
The items in question are referred to as S2X and S4X butterfly valves. Each valve primarily consists of a valve body, a valve seat, a disc, and a valve stem. For certain series of the S2X butterfly valves, the disc and stem are manufactured as one piece while with other series of the S2X valves, the disc and stem are manufactured as separate pieces. The valve bodies of the S2X butterfly valves are assembled in two halves (top and bottom halves). With the S4X butterfly valve, the disc and stems are connected using taper pins. The S2X butterfly valve is rated and tested to withstand pressures up to 165 PSIs, and the S4X butterfly valves are rated and tested to withstand pressures of 315 to 1630 PSIs. It is stated that the S2X and S4X valves may be entered with a bare stem or attached to an actuator.
In regard to country of origin for the purpose of 301 Trade Remedies, it is explained that components from China and Malaysia are assembled to each other to form a complete valve. The final assembly of the S2X and S4X valves occurs in China. For both valves, the disc stem, seats, seals, bearings, and retainer are from China, and the valve body is from Malaysia.
The final assembly of the S2X valves, which come in a large or small size, commences by inspecting the components. The process for the smaller-sized S2X valves continues with the installation of the bearings in the lower and upper valve body halves. The seat is compressed, and the seals are pre-compressed. The disc is elongated into the seat’s inner diameter and the disc hubs are rotated into alignment with the seat. Afterwards, the stem seals are inserted into the disc hubs, and the stem openings are then aligned. The disc and seat hubs with seals are aligned by inserting the stem into the stem openings at the outside diameter of the seat. Then, the upper stem is inserted to the disc/seat/stem assembly and into the valve body, which is followed by the installation of the lower body over the seat. Lastly, body fasteners, the upper stem seal, stem bushing and retainer are installed. It is mentioned that seal strips are positioned and adjusted, as needed throughout the various steps.
For the larger-sized S2X valves, the seat is subjected to a compressing process. The disc is then inserted into an elongating apparatus, and the pre-compressed seat is placed over the disc. The stem seals are inserted into the disc hubs and the disc and seat hubs are inserted into the stem openings. The disc/seat/stem subassembly is then inserted into the upper half of the valve body. The seat flange is then inserted into the valve body. The lower valve body half is placed over the seat and the alignment of the body halves is confirmed. The upper stem seal, stem bushing and retainer are installed into place and the body fasteners are tightened. Lastly, the grounding clip is installed. Lubrication is applied as needed through the steps. It is mentioned that seal strips are positioned and adjusted, as needed throughout the various steps.
Upon completion, each S2X valve is subject to various tests and inspections.
The assembly of the S4X valve, which also occurs in China, begins by inspecting and cleaning the components. For the smaller-sized S4X valves, taper pins are removed from the disc/stem assembly and the bearings are installed into the stem hole of the valve body. For certain models of the S4X valve, a gasket or O-ring is attached to the threaded or bolted plug. Next, the stem is removed from the disc, and the disc is installed into the valve body. Disc spacers are installed into the valve body’s stem holes and the stem is installed into the valve. The taper pins are installed and aligned. Seals, a seat retainer and a gland ring are then installed. A thrust washer is installed onto the valve stem, and into the packing chamber and afterwards, a stem seal is installed. Afterwards, a disc spring is installed over the gland ring with the remaining disc springs being installed in the same direction. Packing studs are installed. A retaining ring is installed for smaller sized valves, and a gland retainer is then installed over the packing studs.
For larger-sized S4X valves, the taper pins are removed from the disc/seat assembly. Bearings are installed into the stem hole of the body. A gasket or O-ring is then installed, and the disc and disc spacers are then installed. A gland ring is installed onto the valve stem and inserted into packing chamber, followed by the installation of a grounding washer. The stem is inserted into the valve body, which is followed by the aligning and installation of the taper pin holes. Afterwards, a stem cell, seals, a grounding washer, a disc ring, packing studs, split rings, and lock washer are installed.
Upon completion, each S4X valve is subject to various tests and inspections.
Pursuant to Part 134, Customs Regulations (19 CFR §134) implements the country of origin marking requirements and exceptions of 19 USC 1304. Section 134.1(b), Customs Regulations (19 CFR § 134.1(b)), defines “country of origin” 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.” A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation.
For the S2X and S4X butterfly valves, components from China and Malaysia are assembled to each other in China to form complete valves. As described above, the assembly processes are rather simple and do not result in a substantial transformation of the components. Instead, the country of origin for the purpose of 301 Trade Remedies for both valves is determined by their essence, which is the valve body. In the scenarios described above, the valve bodies of the S2X and S4X valves are produced in Malaysia. Accordingly, the country of origin of the S2X and S4X butterfly valves for the sole purpose of 301 Trade Remedies is Malaysia.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. §177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division