OT:RR:NC:N1:102
Andrew Park
Andrew J. Park CHB
19515 S. Vermont Avenue, Suite 100
Torrance, CA 90502
RE: The country of origin of a butterfly valve
Dear Mr. Park:
In your letter dated May 31, 2025, you requested a country of origin ruling on a valve on behalf of your
client, Sungdo Valve Co., Ltd.
The valve is described as a butterfly valve, model number P1FC-L1-1200-F6C-XAG. The steel valve
consists of a housing that encases a circular shaped disc that rotates to open or close a flow path. The valve,
which can be manually actuated or used with electrical or pneumatic actuators, is used in the piping systems
of industrial facilities.
In your letter you suggest the butterfly valve is classified within subheading 8481.80.1090, Harmonized
Tariff Schedule of the United States (HTSUS), which provides for Taps, cocks, valves and similar
appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and
thermostatically controlled valves; parts thereof: Other appliances: Hand-operated: Having a pressure rating
of 850 kPa or over: Butterfly type. While we agree the valve is classified within heading 8481, we disagree at
the subheading level, as the valve is a bare stem valve.
Accordingly, the applicable subheading for the butterfly valve will be 8481.80.9050, HTSUS, which provides
for Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including
pressure-reducing valves and thermostatically controlled valves; parts thereof: Other appliances: Other:
Other: Other. The general rate of duty is 2 percent ad valorem.
With respect to origin, you explain that the final assembly of the valve occurs in South Korea and consists of
components sourced from South Korea and China.
Prior to the final assembly, the valve body is cast in China and afterwards, exported to South Korea, where
the inner diameter of the circular shaped casting is machined and then finished. Next, the front and rear faces
are machined and finished to create the lug features. Afterwards, the mounting area of the clamp ring is
finished, and a serration process occurs. Subsequently, the upper surface of the body is milled and the
mounting areas for the shaft, bearings, gland, glanding flange, bracket, bottom packing, and bottom cover are
machined. Finally, the holes in the lugs and clamping plates are drilled and tapped.
Additional components undergo machining and finishing processes in South Korea prior to the final
assembly of the valve, i.e., the disc, the shaft, the seat, and the clamp ring. The disc, which is cast in China, is
exported to South Korea to be machined and finished in the outer diameter area, and in the boring section,
where the shaft will be inserted. The clamp ring is cast in China and exported to South Korea, where the
inner and outer diameters, clamping ring holes, and the front and rear faces are machined. The seat is cast in
South Korea and then its clamping ring area is turned, machined and polished. The shaft, which is also cast in
South Korea, is machined in the areas of the outer diameter, and in the connecting, mounting and contact
areas.
The final assembly begins by installing a bearing from South Korea into the upper and lower stem bores of
the valve body, which is followed by the insertion of a section of a shaft. Next, a disc is inserted into the
center of the valve body and the shaft and then packing and a bottom cover are secured to the lower bore of
the valve body. Afterwards, a bearing from South Korea is mounted onto the shaft and packing is installed
into the upper shaft hole of the body. Subsequently, a bracket, a gland and a gland flange are bolted in place,
and the disc is affixed to the shaft using a disc pin from South Korea. Finally, the seat and seat ring are
placed, and the clamp ring is installed over the seat. Once complete, the valve is inspected, surface treated,
tested, and painted.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling
Letter H301619 (dated November 6, 2018). The test for determining whether a substantial transformation
will occur is whether an article emerges from a process with a new name, character, or use different from that
possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778
(C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v.
United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
When determining the country of origin of valves, CBP has relied on the origin of the valve body, the
essential component of a valve, as the process of assembling a valve is rather simple. Components are
typically assembled into the valve body using processes such as inserting and screwing components to each
other. Such processes are not regarded as being complex. See New York rulings N339513 (dated May 6,
2024), N338713 (dated April 3, 2024), N325765 (dated May 26, 2022) and N322652 (dated December 2,
2021). The same origin rationale is applicable here, as the assembly processes of the subject valve primarily
consist of inserting, placing, and bolting components to each other.
With regard to the origin of the valve body, it is not until the machining and finishing processes, which occur
in South Korea, that the casting is recognizable as a valve body. It is in South Korea that the lugs, the faces,
the inner diameter, and other features of the valve body are formed, substantially transforming the casting
into a new and different article of commerce with a name, character, and use distinct from the casting
exported from China. As such, the county of origin for the butterfly valve is South Korea.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must
be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading
8481.80.9050, HTSUS, listed above.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS
and the accompanying duty rates are provided at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
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 Sandra Martinez at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division