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 and marking of gear pumps
Dear Mr. Smith:
In your letter dated February 5, 2026, you requested a country of origin ruling on behalf of your client,
Permco, Inc. You also inquire about a labeling option for the purpose of marking the gear pumps. A
description of the final assembly processes was provided in the submission.
The products at issue are the 2100 Series Hydraulic Gear Pumps, which will be imported in 13 different
configurations. The rotary positive displacement pumps are used in industrial fluid power systems. Each
pump consists of a housing that sits between a shaft and covers. 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. The variations of the pumps are driven by customer needs and catalog options, which impact
pump size, port or drain configurations and mounting styles. The part numbers of the pumps are
P2100A231IDZK20-87, P2100A231IDZK20-87 (CHE), M2100A886SPLADDE20-32PS (CHA),
P2100A231IX12ZK25-87, P2100A290IDZK20-14, P2100A290IDZA20-14,
M2100A886SPLADDE15-32PS (CHA), P2100A231IX12ZK25-87 (CHE), P2100W290SPLIDZA20-14
(SNW), P2100W290SPLIDZA17-14 (SNW), P2100W290SPLIDZK20-14 (SNW),
P2100W290SPLIDZK17-14 (SNW) and P2100A290IDZK17-14.
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 China 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 an idler and drive gear in the United States. Once the finished gear units are
exported to China, the faces of the gears are stoned and subject to a deburring process. In China, 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).
Additionally, 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. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (CBP) Regulations (19 CFR 134) implements the
country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP
Regulations (19 CFR 134.1(b)), defines “country of origin” 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 the marking laws and regulations.
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 China 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 the
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 (idler and drive gears) is the United States, the
origin of the gear pump is the United States.
In your letter, you also inquired about the country of origin marking for the subject gear pumps and suggest
marking the gear pumps using the words “Assembled in China with U.S. Essential Components.” The
marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless
excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country
of origin of the article.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is
considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it
without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)),
provides that as a general rule marking requirements are best met by marking worked into the article at the
time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk,
molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides
that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate
purchaser unless deliberately removed is acceptable.
As noted above, the gear pumps are considered a product of the United States for origin and marking
purposes at the time of importation into the United States. In this regard, section 134.43(e), Customs
regulations (19 CFR 134.43(e)), provides that: where an article is produced as a result of an assembly
operation and the country of origin of such article is determined under this chapter to be the country in which
the article was finally assembled, such article may be marked, as appropriate, in a manner such as the
following: (1) Assembled in (country of final assembly); (2) Assembled in (country of final assembly) from
components of (name of country or countries of origin of all components); or (3) Made in, or product of,
(country of final assembly). Consistent with 19 C.F.R 134.43(e), the terms “Made in,” Product of,” and
“Assembled in” are words of similar meaning. Accordingly, because the country of origin is the United
States and not China, your proposed marking of “Assembled in China with U.S. Essential Components”
would not be an acceptable country of origin marking.
Inasmuch as the marking requirements of 19 U.S.C. 1304 are applicable only to articles of “foreign origin,”
the subject pumps are not required to be marked upon importation into the United States. Whether an article
may be marked with the phrase “Made in the USA” or references 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, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed
markings indicating that an article is made in the U.S.
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)
James Forkan
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division