CLA-2:OT:RR:NC:N2:206
Joseph Lovegren Shimadzu Precision Instruments, Inc. 3645 N. Lakewood Blvd. Long Beach, CA 90808
RE: The classification and the country of origin of a modular assembly.
Dear Mr. Lovegren:
In your letter, dated September 28, 2021, you requested a tariff classification ruling and country of origin determination of a Modular Assembly, Reservoir Pressurization. Pictures, videos, diagrams, and other descriptive literature were provided with your request.
The item under review is a Modular Assembly, Reservoir Pressurization (Part Number 732-11610), which is designed to be used with Boeing aircraft B747, B767, and B777. The modular assembly is a pneumatic manifold, which provides a means of supplying the engine bleed air flow required to pressurize the aircraft hydraulic reservoir. Its components consist of a body/manifold, two check valves, two filters and a depressurization bleed valve. It is mounted on the aircraft by means of four mounting lugs. Its function is to pressurize the hydraulic reservoir, at the return port of the hydraulic system, and thereby prevent hydraulic pump cavitation. The unit also includes a bleed valve to facilitate safe maintenance of the system and is equipped with filters. The unit does not provide regulation, relief, or venting functions.
The applicable subheading for the Modular Assembly, Reservoir Pressurization (Part Number 732-11610) will be 8803.30.0030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts of goods of heading 8801 or 8802: Other parts of airplanes or helicopters: For use in civil aircraft: Other.” The rate of duty will be Free.
The "country of origin" is defined in 19 C.F.R 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. For country of origin marking purposes, a substantial transformation of an article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the article before the processing. 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).
Under Section 134.32(m), CBP Regulations, products of the United States that are exported and returned are excepted from the country of origin marking requirements of 19 U.S.C. Part 1304.
In National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993), the court considered sockets and flex handles which were either cold formed or hot forged into their final shape prior to importation, speeder handles which were reshaped by a power press after importation, and the grip of flex handles which were knurled in the U.S. The imported articles were then heat treated which strengthened the surface of the steel, and cleaned by sandblasting, tumbling, and/or chemical vibration before being electroplated. In certain instances, various components were assembled together which the court stated required some skill and dexterity. The court determined that the imported articles were not substantially transformed and that they remained products of Taiwan. In making its determination, the court focused on the fact that the components had been cold-formed or hot-forged “into their final shape before importation,” and that “the form of the components remained the same” after the assembly and heat-treatment processes performed in the U.S. Although the court stated that a predetermined use would not necessarily preclude a finding of a substantial transformation, it noted that such determination must be based on the totality of the evidence. The court then concluded that no substantial change in name, character or use occurred as a result of the processing performed in the U.S.
In this instance, you state that all components of the modular assembly are made in the United States. The components will be exported to Japan for cleaning, assembling, testing, and product marking. The processing operations that will be conducted in Japan appear to be minor and will not change the basic nature of the components, which are made in the United States. The components are clearly dedicated for use in the modular assembly and cannot be used for any other purpose. As a result, no substantial transformation will occur in Japan.
Therefore, the country of origin of the Modular Assembly, Reservoir Pressurization is the United States, and thus in accordance with 19 C.F.R. 134.32(m) they are not required to be marked to indicate their country of origin.
Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the USA.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
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