CLA-2-76:OT:RR:NC:N1:116
Mr. Daniel Cannistra
Crowell & Moring, LLP
1001 Pennsylvania Avenue, NW
Washington, DC 20004
RE: The country of origin of aluminum sheet
Dear Mr. Cannistra:
In your letter dated January 8, 2021, you requested a country of origin ruling on behalf of your client, Alanod Westlake Metal Industries Inc.
The product under consideration, identified as a bright aluminum sheet, is used in various applications such as lighting reflectors, solar thermal energy conversion, decoration for buildings, and decorative trims for furniture, automobile, and electronics. According to your submission, the aluminum sheet will be imported into the United States (U.S.) in 1250 mm wide coils and will range in thickness from 0.1 mm to 0.8 mm. The surface of the sheet will be anodized and may also have a lacquer finish, a physical vapor disposition (PVD) finish or both.
The slabs for the sheet will be sourced from various countries and imported into Spain. In Spain, the slabs will undergo a blank rolling process to be transformed into plate rolled blanks. The blanks are then shipped to France where they undergo bright cold-rolling to achieve the desired thickness and the bright smooth surfaces. The bright cold-rolling reduction is a thermo-mechanical process that alters the microstructure of the aluminum and also reduces the thickness by as much as 30 percent. If the sheet is to be annealed, it will occur at this stage of the manufacturing process. After annealing, the sheet is shipped to Germany where it is anodized. If the sheet is scheduled to have a PVD finish, it will happen after anodization. The last step, if applicable, is lacquering. The sheet is then imported into the U.S. as a bright aluminum sheet.
You have suggested that the country of origin is France because it is the last country where a substantial transformation has occurred. You have also suggested that the processing done in Germany is considered minor processing and does not effect a substantial transformation. 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 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 this part. A substantial transformation occurs when articles lose their identity and become articles having a new name, character or use.
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). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, dated January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
The issue concerning the country of origin/substantial transformation of cold-rolled metal sheet produced from hot-rolled coils was previously addressed in Headquarters’ Rulings 080277 dated September 21, 1987 and 089538 dated August 7, 1991. It was held in both of these rulings that the cold-rolling process alters the physical and mechanical properties of steel, that hot-rolled and cold-rolled flat-rolled steel are commercially distinguishable and marketable to different groups and that the cold-rolling processing operations significantly increased the value/cost of a steel product. The cold-rolled flat-rolled steel was found to meet the substantial transformation test. That is, it has a name, character, and use different from that possessed by the hot-rolled flat-rolled steel. Both rulings held that the steel became a product of the country in which the cold-rolling occurred. It is this office’s opinion that the same is true for aluminum. As such, we find that a substantial transformation occurred with the cold-rolling performed in France. Also, this office finds that anodizing, applying a PVD coating, and/or lacquering the aluminum sheet in Germany constitutes minor processing and does not effect a substantial transformation. The country of origin of the aluminum sheet is France.
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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division