CLA-2-84:OT:RR:NC:N1:103
BJ Shannon
Alston & Bird LLP
950 F Street NW
Washington, DC 20004
RE: The tariff classification and country of origin of a pool heater component
Dear Ms. Shannon:
In your letter dated November 20, 2025, you requested a tariff classification, country of origin, and trade
agreement ruling on behalf of your client, Pentair Water Pool and Spa, Inc.
The subject component, identified as part number 42001-0126, is described as a copper-finned tube that will
be bent into a shape that resembles the Greek letter omega. It will be used in a gas-fired Pentair pool heater.
Post-importation, several of these omega-shaped copper-finned tubes are installed inside the pool heater
where they will surround a burner assembly.
When the pool heater is in operation, cold water enters the inlet port, circulates through the omega shaped
tubes, and exits through the outlet port. The water moving through the tube is heated directly by the burner
assembly.
The applicable subheading for the omega-shaped copper finned tube, part number 42001-0126, will be
8419.90.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machinery,
plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other
equipment of heading 8514), for the treatment of materials by a process involving a change of temperature
such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying,
evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic
purposes; instantaneous or storage water heaters, nonelectric; parts thereof: Parts: Of instantaneous or storage
water heaters.” The general rate of duty will be free.
Regarding the country of origin of the omega-shaped copper finned tube, two manufacturing scenarios were
proposed. Both scenarios begin with sourcing a straight copper-finned tube from Germany. In the first
scenario, the entire manufacturing process will occur in Germany and begins with trimming the fins on both
ends of the finned copper tube so that they will fit into a tube sheet in the pool heater. Next, a custom-made
combing tool holds the tube in place while a die bends (or flattens) the fins over on two opposing surfaces
using a sled-like motion. Afterwards, a dedicated hydraulic press with custom tooling bends the tube into an
omega shape.
In the second scenario, all of the operational steps as described above will occur in Mexico. The only
difference is the straight copper finned tube is sourced from Germany.
When determining the country of origin for purposes of applying current trade remedies 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).
CBP has held that whether a manufacturing process is sufficiently complex to rise to the level of a substantial
transformation is determined upon consideration of all the operations that occur within that country. In
viewing the information in your submission for the first scenario, we find the country of origin is Germany
since the entire manufacturing process occurs in Germany.
In the second scenario, we find that the manufacturing operations that occur in Mexico transform the straight
copper-finned tube into a new article with a different use. The operations that occur in Mexico transform a
straight copper finned tube (with a variety of potential uses) into a distinct shape, creating an identifiable
component that is restricted to a specific application. Therefore, the country of origin of the omega-shaped
copper-finned tube in the second scenario is Mexico.
You also ask if the subject omega-shaped tube qualifies under the U.S.-Mexico-Canada Agreement
(USMCA) when produced in Mexico. The USMCA was signed by the Governments of the United States,
Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the
enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19
U.S.C. § 4511(a)). General Note (GN) 11 of the HTSUS implements the USMCA. GN 11(b) sets forth the
criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential
tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the
tariff schedule as a “good originating in the territory of a USMCA country” only if—
(i) the good is a good wholly obtained or produced entirely in the territory of one or more
USMCA countries;
(ii) the good is a good produced entirely in the territory of one or more USMCA countries,
exclusively from originating materials;
(iii) the good is a good produced entirely in the territory of one or more USMCA countries
using non-originating materials, if the good satisfies all applicable requirements set forth in
this note (including the provisions of subdivision (o));
Since the omega-shaped tube contains non-originating materials, it is not considered a good “wholly
obtained” or “produced entirely in a USMCA country” under GN 11(b)(i) and GN 11(b)(ii). We must next
determine whether the omega-shaped tube qualifies under GN 11(b)(iii). Since the finished omega-shaped
tube is classified under subheading 8419.90, HTSUS, the applicable rule of origin is in GN 11(o)/84.65,
HTSUS, which provides for “a change to subheading 8419.90 from any other heading.” Based on the facts
presented, the non-originating material is classified outside of heading 8419, HTSUS. As such, all foreign
materials meet the tariff shift requirement. Accordingly, the omega-shaped tube is eligible for preferential
tariff treatment under the USMCA.
Products of Mexico as provided by heading 9903.01.01 in Section XXII, Chapter 99, Subchapter III, U.S.
Note 2(a), HTSUS, other than products classifiable under headings 9903.01.02, 9903.01.03, 9903.01.04, and
9903.01.05, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At the time of entry,
you must report the applicable Chapter 99 heading, i.e., 9903.01.01, in addition to subheading 8419.90.1000,
HTSUS, listed above. Articles that are entered free of duty under the terms of general note 11 to the HTSUS
(USMCA), including any treatment set forth in subchapter XXIII of Chapter 98 and subchapter XXII of
chapter 99 of the HTSUS, will not be subject to the additional ad valorem duties provided for in heading
9903.01.01. If your product is entered duty free as originating under the USMCA, you must report heading
9903.01.04, HTSUS, in addition to subheading 8419.90.1000, HTSUS.
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 of the European
Union with an ad valorem (or ad valorem equivalent) rate of duty under column 1-General less than 15
percent will be subject to an additional ad valorem rate of duty of 15 percent minus the column 1-General
duty rate. At the time of entry, you must report the Chapter 99 heading applicable to your product
classification, i.e., 9903.02.20, in addition to subheading 8419.90.1000, HTSUS, listed above. Products of
Mexico are not subject to reciprocal tariffs. At the time of entry, you must report the Chapter 99 heading
applicable to your product classification, i.e., 9903.01.27, in addition to subheading 8419.90.1000, 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/.
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 Paul Huang at [email protected].
Sincerely,
(for)
Deborah Marinucci
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division