CLA-2:OT:RR:NC:N1:126
Russell Nelson
Masonite International Corporation
7300 Reames Rd.
Charlotte, NC 28216
RE: The country of origin of an insulating glass unit (IGU)
Dear Mr. Nelson:
In your letter dated January 10, 2019, you requested a country of origin ruling. A sample was submitted with your ruling request.
The merchandise under consideration is an “Insulating Glass Unit (IGU), Item Number 78IZ228-627-S”. From the information provided, the “IGU” consists of the following components: outer glass panel of tempered glass from Korea, inner glass panel of clear float glass from China, inner glass panel of patterned float glass from China, outer and inner caming from China, aluminum spacer from the United States (U.S.), and mastic from Korea.
You indicate that the IGU will be manufactured and assembled with other components in Korea to form a complete IGU prior to importation into the United States. From the information you provided, the IGU is manufactured on a made-to-order basis. The dimensions, thickness of the glass panes, and type of glass for each pane as well as the overall thickness of the unit is supplied to the manufacturer. Spacers of specific thicknesses are cut and assembled into the unit and filled with desiccant. The glass panes are cut to size and washed to be optically clear. The production process includes:
Fitting the center glass panel (core) into the groove of the flexible spacer;
Sealing the core with flexible spacer between two tempered glass panels.
Pressing and overlapping the spacer closure to seal the unit.
Heating sealed unit through an industrial oven to ensure proper sealing performance.
Cooling down the IGU and applying the secondary sealing layer with back bedding.
Shipping the finished IGU product directly to the U.S.
You reference 19 C.F.R. § 102 in your submission. However, 19 C.F.R. § 102 which determines the country of origin of imported goods for NAFTA purposes cannot be used to determine the country of origin in this instance.
Section 19 C.F.R. § 134.1(b) defines "country of origin" as the country of manufacture, production or growth of any article of foreign origin entering the U.S. 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 Part 134. A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use which differs from the original material subjected to the process. An imported article is not a product of a country unless it has been substantially transformed there into a new and different article of commerce with a name, character, or use different from that of the article or articles from which it was transformed. Based on the information submitted, it is the opinion of this office that the “Insulating Glass Unit (IGU), Item Number 78IZ228-627-S” will undergo a substantial transformation in Korea by further manufacturing into a new and different product. Therefore, the country of origin for Customs marking purposes is Korea.
It is noted that the aluminum spacers are of U.S. origin. Components of American origin which are sent to Korea to be assembled into the IGU may be eligible for classification in subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Articles, except goods of heading 9802.00.90 and goods imported under provisions of subchapter XIX of this chapter and goods imported under provisions of subchapter XX, assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting. Upon compliance with the documentation requirements of 19 C.F.R. § 10.24, an allowance in duty for the cost or value of the U.S. components may be granted.
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 Elena Pietron at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division