MAR-2:OT:RR:NC:N2:206
Jeffrey Hopkins
Corporate Counsel
Bray International, Inc.
13333 Westland East Blvd.
Houston, Texas 77041
RE: The country of origin of a pneumatic actuator.
Dear Mr. Hopkins:
This is in response to your letter dated December 16, 2019, requesting a ruling on the country of origin for S92 pneumatic actuators.
The items under consideration are S92 rotary turn pneumatic actuators: model numbers 920630-11300532, 920830-11300532, 921280-11300532, and 921600-11300532. S92 rotary turn pneumatic actuators convert energy-compressed gas (air) into motion. The introduction of pressure between the pistons and between the pistons and end caps drives the pistons in a linear fashion that translates to a rotational force on the pinion when the piston’s “teeth” engage the pinion.
You inquired what the country of origin of the S92 actuators would be under the following two scenarios:
In the first scenario, the body, pinion, pinion bearings, piston bearing pad, piston guide ring, IBTS cam, and indicator are sourced from China. These components are assembled together with other Malaysian components, such as pistons, end caps, and nameplate in Malaysia.
In the second scenario, the pinion is sourced from Malaysia or another non-China country. The rest of the scenario is identical to the first scenario.
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.
The courts have held that 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. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983) (Uniroyal). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). In Uniroyal case, the court held that an upper was not substantially transformed when attached to an outsole to form a shoe and that the upper was "the very essence of the completed shoe".
Based on the information provided, the assembly in Malaysia of Chinese and Malaysian components does not result in a substantial transformation. As a result, we need to determine what the essence of the S92 actuator is. You state in your submission that air pressure is introduced between the pistons, driving the pistons out towards the actuator end to open the valves or inwards to close valves. This causes the piston racks to drive the pinion in a counterclockwise direction, or clockwise, respectively, resulting in a quarter-turn motion. This rotation is transferred to the valve shaft, opening and closing the valve. Since the pinion is opening and closing the valve, it is the very essence of the entire S92 actuator.
Therefore, the S92 rotary turn pneumatic actuators (model numbers 920630-11300532,
920830-11300532, 921280-11300532, and 921600-11300532) are considered a product of China in the first scenario, and Malaysia in the second scenario for both origin and marking purposes at the time of importation into the United States.
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, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division