MAR-2 OT:RR:NC:1:102
Mark A. Roybal
4801 W. Lovers Lane
Dallas, Texas 75209
RE: COUNTRY OF ORIGIN MARKING OF IMPORTED CLEAN AGENT CHECK VALVE.
Dear Mr. Roybal:
This is in response to your letter dated July 10, 2014, on behalf of Fike Corporation, requesting a ruling on whether the imported Check Valve, part number 02-4157 is required to be individually marked with the country of origin if it is later to be processed in the U.S. by a U.S. manufacturer. A marked sample was not submitted with your letter for review.
The technical literature describes the article in question as a Check Valve, which is manufactured in China. The item is made of iron, measuring three inches in length and used in fire suppression systems. The Check Valve’s function is to prevent agent loss from the open end of a manifold or piping system.
The applicable subheading for the Check Valve, part number 02-4157, is 8481.30.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Taps, cocks, valves and similar appliances, Check Valves, Of iron or steel, Of Iron. The rate of duty is five percent ad valorem.
For marking purposes, you propose “U.S.” as the country of origin and in your letter you explain, the Check Valve undergoes a remanufacturing process that includes disassembling and replacing parts from third party vendors. These parts, machined by Fike Corporation’s Quality Control Department for assurance of dimensional tolerances, include a shoulder bolt measuring ½ inch by ¾ inch containing 3/86 threads, a 3/86 locknut, an O-Ring and an aluminum damper. The remanufacturing process incorporated includes an inspection by the receiving department, drilling a hole through the damper to de-burr any sharp edges, chamfering a hole on the inlet side for placement of the O-ring, inserting the shoulder bolt and damper from the outlet side and installing an O-ring and locknut from the inlet side. The nut and bolt assembly undergo torqueing and the Check Valve then undergoes a labeling process.
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.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.
In this case, the components of the Check Valve, part number 02-4157, were not altered by the disassembling and replacing process and the valve continues to be constructed with the same materials prior to remanufacturing. Thus, the check valve is not substantially transformed as a result of the U.S. processing, and the U.S. manufacturer is not the ultimate purchaser of the imported parts (See Ruling HQ H171035 dated August 22, 2012). Accordingly, the origin of the Check Valve will be the country as marked upon importation.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division