OT:RR:NC:N1:102
P. Lee Smith
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
901 K Street, NW, Suite 900
Washington, DC 20001
RE: The country of origin of a gear pump
Dear Mr. Smith:
In your letter dated December 1, 2025, you requested a country of origin ruling on behalf of your client,
Permco, Inc. A description of the final assembly processes was provided in the submission.
The product at issue is the 2100 Series Hydraulic Gear Pump. The rotary positive displacement pump, which
is used in industrial fluid power systems, transfers fluid when two gears mesh together to create suction at the
pump’s inlet. The pump consists of a gear housing that sits between a shaft and covers. Together, these
housings enclose valves, a seal, gaskets, and gear units that consist of a gear on a shaft. The interlocking gear
units are designed to repeatedly move fluid.
It is noted that a country of origin ruling for this product, in which the final assembly occurs in the United
Kingdom, was previously issued in New York Ruling N354559, dated October 22, 2025. Here, the final
assembly of the gear pump will occur in Canada using components sourced from the United States and other
countries, such as China, India, etc. Prior to the final assembly, steel slugs are ground, saw cut, shaped,
shaved, milled, heat treated and lapped to achieve the exact tolerances of a gear unit in the United States.
Once the finished gear units are exported to Canada, the faces of the gears are stoned and subject to a
deburring process.
In Canada, a shaft end cover, a port end cover and a gear housing, which are either from China, United States
or India, undergo additional processing. The shaft end cover undergoes a deburring process, sealant is
applied, and a ring seal, check valves, and bearings from China or the United States are inserted into the
designated bores. The port end cover undergoes a deburring process, and afterwards a ring seal and bearings
from China or the United States are inserted into the cover. The housing, referred to as a gear housing, which
is either from China or India, is also deburred.
The final assembly begins by inserting dowel pins and a thrust end plate into a shaft end cover. Next, the
shaft ends of the gear units are inserted into the bores of the shaft end cover. A gasket seal, which is sourced
from Vietnam, is installed into a gear housing. Afterwards, the gear housing is placed over the shaft end
cover, which is followed by the application of grease. Subsequently, a port end cover is placed over the gear
housing and is manually aligned, pressed and hammered in position. The components are then affixed in
position using bolts. Lastly, the pump is labeled, inspected and finished by adding plastic caps.
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).
The final assembly processes described above are rather simple and do not constitute a substantial
transformation. Inserting components into the port end cover subassembly and subsequently a housing is not
complex. The processes performed in Canada do not change the shape, character, or predetermined use of the
inputs. Therefore, like the water pump in New York Ruling Letter N347081, dated April 10, 2025, and pump
end in Headquarters Ruling Letter H313089, dated February 16, 2021, we look to the origin of the
components that displace fluid. In this case it is the rotation of the two gear units that create suction to
transfer fluid. Therefore, as the origin of the two gear units is the United States, the origin of the gear pump is
the United States.
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)
Evan Conceicao
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division