CLA-2-73:OT:RR:NC:N5:121
Haojun Sun
TECH FORGE SDN. BHD.
No. 7, Pesiaran Industri Rapat 2, Kawasan Perindustrian Sri Rapat 31350
Ipoh, Perak
Malaysia
RE: The classification, country of origin, and marking of a Tee Head Bolt Assembly and Mechanical Joint
Gasket Pack
Dear Mr. Sun:
In your letter dated June 16, 2025, you requested a classification, country of origin, and marking ruling on a
Tee Head Bolt Assembly and Mechanical Joint Gasket Pack.
The first item under consideration is described as a Tee Head Bolt with Hex Nut (Part No. TB). The Tee
Head Bolt is a partially threaded ¾ x 3 ½ inch (19 mm diameter x 89 inches long) fastener made of low-alloy
Corten weathering steel. The Heavy Hex Nut is designed to pair with the Tee Head Bolt and is made of the
same low-alloy Corten weathering steel.
You state that the Tee Head Bolt and Heavy Hex Nut are both produced from wire rod sourced from Vietnam
and China and shipped to Malaysia. In Malaysia, the bolt is cold-forged to the tee-head configuration,
threaded and tested. The nut is cold-forged, tapped, and tested.
The second item under consideration is described as a Mechanical Joint Gasket Pack (Part No. MGP). The
pack includes six of the above-described Tee Head Bolt & Nut Assemblies and one 6-inch Mechanical Joint
Rubber Gasket composed of vulcanized styrene butadiene rubber (SBR). The gasket is specially formulated
for pressure sealing applications and is made in India. The pack is a pipeline connection kit designed for
ductile iron pipe systems. The gasket and six fasteners are packaged together in Malaysia and “provide a
convenient, compatible connection solution.”
To classify the Mechanical Joint Gasket Pack, we must first determine whether the items packaged together,
the bolt assemblies and gasket meet the tariff definition of a set. The Explanatory Notes (ENs) to the
Harmonized Tariff Schedule of the United States (HTSUS) constitute the official interpretation of the tariff at
the international level. EN X to General Rule of Interpretation (GRI) 3(b) provides: “for the purposes of this
Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which: (a) consist of at least
two different articles which are, prima facie, classifiable in different headings; (b) consist of products or
articles put together to meet a particular need or carry out a specific activity; and (c) are put up in a manner
suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).” Sets are classified
according to the component, or components taken together, which can be regarded as conferring on the set as
a whole its essential character. The Mechanical Joint Gasket Pack consists of two items classifiable under
separate headings packaged and ready for retail sale. Therefore, the pack fulfills the requirements of (a) and
(c) above. However, we believe the pack fails requirement (b). The Bolt Assemblies function to secure two
pieces of pipe which are not part of this pack. The Gasket functions to create a seal between the two pieces of
pipe and does not interact with the Bolt Assemblies. Thus, the Mechanical Joint Gasket Pack is not a set for
purposes of classification under GRI 3(b). We therefore proceed with classification of the bolt assemblies and
the gasket separately.
The applicable subheading the Tee Head Bolt with Hex Nut (Part No. TB) will be 7318.15.2095, HTSUS,
which provides for Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers
(including spring washers) and similar articles, of iron or steel: Threaded articles: Other screws and bolts,
whether or not with their nuts or washers: Bolts and bolts and their nuts or washers entered or exported in the
same shipment… Having shanks or threads with a diameter of 6 mm or more: Other: Other: Other. The duty
rate will be free.
The applicable subheading for the Mechanical Joint Rubber Gasket will be 4016.93.5050, HTSUS, which
provides for Other articles of vulcanized rubber other than hard rubber: Gaskets, washers and other seals:
Other: Other. The rate of duty will be 2.5 percent ad valorem.
On March 12, 2025, Presidential proclamation 10896 imposed additional tariffs on certain derivative iron or
steel products. Additional duties for derivative iron or steel products of 50 percent are reflected in Chapter
99, headings 9903.81.89 and 9903.81.90, and 9903.81.91. Products provided by heading 9903.81.91, as well
as products of Chapter 73 provided by 9903.81.89 abd 9903.81.90, will be subject to a duty of 50 percent
upon the value of the steel content. At the time of entry, you must report the Chapter 99 heading applicable to
your product classification, i.e. 9903.81.90, in addition to subheading 7318.15.2095, HTSUS. Derivative iron
or steel products processed in another country from steel articles melted and poured in the United
States, provided for in heading 9903.81.92, are not subject to the additional ad valorem duties.
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
including Malaysia and India 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 subheadings 7318.15.2095 and 4016.93.5050, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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/.
Country of Origin
When determining the country of origin for purposes of applying current trade remedies under Section 232
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).
This office reviewed the provided production process of the Tee Head Bolt and Heavy Hex Nut and is of the
opinion that the wire rod sourced from Vietnam or China undergoes processing in Malaysia that is
sufficiently complex and meaningful as to result in a substantial transformation such that the wire rod loses
its individual identity and becomes a new article, possessing a new name, character, and use. As such, the
country of origin of the Tee Bolt Assemblies is Malaysia.
You state the Mechanical Joint Gasket Pack comprises six of the Tee Bolt Assemblies from Malaysia and
one Gasket from India that are packaged together in Malaysia. CBP has long held that a “complex or
meaningful” assembly operation may result in a substantial transformation while a “minimal, simple,
assembly-type operation” ordinarily will not result in a substantial transformation. Simple packaging would
not amount to a substantial transformation in which a product with a new name, character, and use is created.
Therefore, we hold the opinion that the articles are not substantially transformed when packaged together as a
set. As such, the country of origin of the Tee Bolt Assemblies is Malaysia, and the country of origin of the
Gasket is India.
Marking
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every
article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly,
indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to
indicate to the ultimate purchaser in the United States, the English name of the country of origin of the
article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to
know by an inspection of the marking on the imported goods the country of which the goods is the product.
The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by
knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should
influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Because the Tee Head Bolt and Heavy Hex Nut were substantially transformed in Malaysia, the country of
origin of this product for marking purposes will be Malaysia.
Upon review of the proposed country of origin marking on the packaging of the Mechanical Joint Gasket
Pack, we find that your proposal to mark the product “Made in Malaysia” is not acceptable. Because the
Mechanical Joint Gasket Pack comprises products with two countries of origin, it must indicate that the Bolt
Assemblies are made in Malaysia, and the Gasket is made in India.
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 Jennifer Jameson at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division