CLA-2-84:OT:RR:NC:N1:105
Misty Gibbins
Pacific Customs Brokers Inc.
2150 Peace Portal Dr.
Blaine, WA 98230
RE: The tariff classification, country of origin, and eligibility of the United States-Mexico-Canada
Agreement of an Electrochemical Water Purification System
Dear Ms. Gibbins:
In your letter dated February 19, 2026, on behalf of your client, Axine Water Technologies Inc., you inquire
whether an Electrochemical Water Purification System is eligible for duty free treatment under the United
States-Mexico-Canada Agreement (USMCA). You also request a classification and country of origin ruling
for marking purposes. Descriptive literature was provided for our review.
The merchandise under consideration is described as an Electrochemical Water Purification System,
consisting of two reactor vessels, a DC power supply, a plate-and-frame heat exchanger, and associated
piping and control equipment. In operation, a direct current (DC) is applied to the reactors, which contain
anode and cathode surfaces. The applied current induces electrochemical reactions on these surfaces that
oxidize and/or reduce pollutants in the feed water. The system may also generate oxidants (such as hydrogen
peroxide or hydroxyl radicals) that further react with contaminants. The process also generates heat, which is
removed by the system’s plate-and-frame heat exchanger connected to an external cooling source. The
treated effluent is discharged as purified water and the treated wastewater is disposed. The system is enclosed
within a modified 20' high cube (HC) steel container equipped with exterior access panels and a walk-in
entrance door providing access to the interior.
Each of the primary modules are fully assembled in Canada from components sourced worldwide. These
modules include the purge air skid, reactor feed skid, heat exchanger skid, reactor manifold skid, clean in
place skid, reagent dosing system, transfer skid, main distribution panel, and reactor power panel. The
Canadian components include clamps, wire cable trays, brackets, couplings, washers, screws, fittings, chem
secondary containment, a modified 20' HC container, plates, motors, and EOX reactors. The U.S.
components include fittings, clamps, tubes, nozzles, pipe, bushings, flanges, gaskets, pumps, filters, sensors,
reactor tank, a purge air scrubber, and flow transmitters. The Mexican components include transformers and
outlet boxes.
The remaining components are all sourced outside of North America. The Chinese components include nuts,
bolts, screws, bushings, fittings, straps, channels, springs, receptacles, strainers, temperature transmitters, and
analytical transmitter conductivity. The remaining small parts are sourced from Switzerland (glue sockets and
scales), Turkey (cables), the United Kingdom (switches and sensors), Thailand (washers, nuts and screws),
Italy (chemical resistant discs and buttons), India (brass connectors), Taiwan (purge air blower and screws),
India (washers), Austria (strainers), Germany (pumps, switches, nozzles, injection quill, and connectors),
Indonesia (LED light stack), Japan (mounting bracket and plugs), Poland (heat exchanger), and Hungary
(switches).
The manufacturing process starts in Canada with the modification of the cube steel container. The skid
frames are then assembled outside the container by mounting the individual components and equipment onto
the frame with brackets before the PVC and CPVC pipe is cut, glued, and installed. Next, the pipes are
attached to the pumps and other equipment on the frame. The instrumentation is then mounted either directly
onto the piping or using additional brackets before sliding the finished skid into the container. As more skids
are added to the container they are interconnected with piping. Electrical and control cables are pulled from
the panel and connected to each piece of equipment and instruments. Finally, after all of the components are
installed and connected, the complete unit is tested before being shipped.
CLASSIFICATION
The applicable subheading for the Electrochemical Water Purification System will be 8421.21.0000,
Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Centrifuges, including
centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering
or purifying machinery and apparatus for liquids: For filtering or purifying water.” The general rate of duty
will be free.
ORIGIN
In regard to 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).
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.
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other
USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in
sections 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect
to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining
the country of origin of a good for marking purposes, with the exception of textile and apparel goods which
are subject to the provisions of 19 CFR 102.21. See 19 CFR 102.11.
Applied in sequential order, 19 CFR 102.11(a) provides that the country of origin of a good is the country in
which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set
out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable
requirements of these rules are satisfied.
Here, the Electrochemical Water Purification System is neither “wholly obtained or produced” nor “produced
exclusively from domestic materials.” Consequently, paragraphs (a)(1) and (a)(2) cannot be used to
determine the country of origin of the Electrochemical Water Purification System, and paragraph (a)(3) must
be applied to determine the origin of the finished article. As mentioned above, the subject assembly is
classified under subheading 8421.21.
The tariff shift requirement in Section 102.20 for a good classified within this subheading requires a change
to subheading 8421.11 through 8421.39 from any other subheading, including another subheading within that
group.
A review of the bill of materials indicates that the country of origin cannot be determined under
§102.11(a)(1), (2), or (3), as the strainers and filters, sourced from China and Austria, do not undergo the
required tariff shift specified in 102.20.
19 CFR 102.11(b) provides that where the country of origin cannot be determined under paragraph (a) of this
section:
(1) The country of origin of the good is the country or countries of origin of the single material that imparts
the essential character to the good.
The essential character of the Electrochemical Water Purification System is provided by the
Canadian-manufactured EOX Reactors, as they perform the critical function of separating liquid from solids.
Accordingly, the country of origin of the Electrochemical Water Purification System for the purpose of
marking is Canada.
USMCA
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 Harmonized Tariff Schedule of the United States (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)).
In your letter, you explain the final assembly of the product occurs in Canada using components from
Canada, Mexico, the United States, China, Switzerland, Turkey, the United Kingdom, Thailand, Italy, India,
Taiwan, India, Austria, Germany, Indonesia, Japan, Poland, and Hungary. Since the subject Electrochemical
Water Purification System contains non-originating materials, it is not considered a good wholly obtained or
produced entirely in a USMCA country under GN 11(b)(i), nor is the product produced exclusively from
originating materials per GN 11(b)(ii). Thus, we must determine whether the product qualifies under GN
11(b)(iii) and GN 11(o). The applicable tariff shift rule in GN 11(o) for products classifiable under
subheading 8421.21, HTSUS, requires a change to subheadings 8421.19 through 8421.39 from any other
heading.
All of the foreign origin components make the necessary tariff shift required with the exception of three
strainers (China and Austria) and an injection quill (Germany), which are classified under subheading
8421.99. However, the total value of the three parts is less than 1% of the value of the Electrochemical Water
Purification System, which falls under the de minimis threshold allowable to qualify the goods to be entered
under the benefit of USMCA. Thus, the Electrochemical Water Purification System is eligible for preferential
treatment upon importation into the United States.
The 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/.
This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other
charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other
duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the
classification stated above, the merchandise covered by this ruling may also need to be reported with either
the Chapter 99 provision under which an additional tariff applies or one of the Chapter 99 provisions
covering exceptions to such tariffs.
For further information to assist with the importation process, please refer to the frequently updated Cargo
Systems Messaging Service (CSMS) messages at
https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and the Trade Remedies page at
https://www.cbp.gov/trade/programs-administration/trade-remedies.
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 Jason Christie at [email protected].
Sincerely,
(for)
James Forkan
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division