MAR-2 OT:RR:CTF:VS H005109 KSG
Alex Romero Jr.
A.F. Romero Co Inc.
POB 989
Calexico, California 92231
RE: Country of origin of pipe for water delivery
Dear Mr. Romero:
This is in response to your letter dated January 2, 2007, in which you requested a binding ruling on behalf of Tubos California, Inc. as to the country of origin of certain imported pipe for water delivery.
FACTS:
The product involved in this case is pipes for water delivery. The pipes are purchased by municipalities or construction companies laying water pipe.
The raw pipes are manufactured in the U.S. or China. The raw pipes are non-alloy steel pipe with a diameter not exceeding 406.4 mm (16”) that are cold-rolled, not galvanized, and welded, spirally or longitudinally. You state that the raw pipes are classified in subheading 7306.30, HTSUS.
The raw pipes are shipped to Mexicali, Mexico, where the pipes are cut to length according to the job order, may or may not attach pipe fittings, and apply exterior paint, cement mortar lining, and cement mortar coating or a tape coating. You state that when imported into the U.S., the finished pipe are considered AWWA C200 specification but are still classified at subheading 7306.30, HTSUS, the same subheading as the raw pipe.
You state that there is an antidumping order applicable to certain pipes that are a product of Mexico (Antidumping Order A-201-805).
ISSUE:
What is the country of origin of the imported pipe for country of origin marking and duty purposes?
LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930 (19 U.S.C. 1304), as amended, provides that unless excepted, every article of foreign origin 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.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. 1304. Pursuant to 19 CFR 134.1(b), 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 this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.
Since in this case, the raw pipe is shipped to Mexico to undergo further processing, the NAFTA Marking Rules set forth at 19 CFR 102.20 would apply. Based on your classification of the imported pipe at subheading 7306.30, the rule of origin set forth at 19 CFR 102.20(n) would be:
7301-7307………………A change to heading 7301 through 7307 from any other heading, including another heading within that group.
Further, based on your classification of the raw pipe in subheading 7306.30, a change of heading would not occur.
Since the tariff shift rule set forth in 19 CFR 102.20 is not satisfied, pursuant to 19 CFR 102.11(b)(1), the country of origin of the good would be the country of the single material that imparts the essential character to the good. The rule of interpretation set forth in 19 CFR 102.18(b)(1)(iii) states that if there is only one material that is classified in a tariff provision from which a change in tariff classification is not allowed under the 102.20 specific rule or other requirements applicable to the good, then that material will represent the single material that imparts the essential character to the good under 102.11. Therefore, the raw pipe would be the single material that imparts the essential character to the good.
Accordingly, the country of origin of the imported finished pipe under 19 CFR 102.11 would be the country of origin of the raw pipe for country of origin marking and duty purposes.
With regard to the assessment of antidumping and countervailing duties, it is important to note that the country of origin determination made in this ruling is for Customs duty and marking purposes only—the applicability of antidumping and countervailing duties to imported merchandise is solely within the jurisdiction of the U.S. Department of Commerce. Therefore, to ascertain what, if any, impact this ruling has
upon the applicable scope determination, we recommend that you contact that agency at the following address: Import Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, D.C. 20230.
HOLDING:
Based on the information provided, the imported pipes would not satisfy the tariff shift rule set forth in 19 CFR Part 102 as a result of the processing in Mexico. Accordingly, for marking and duty purposes, pursuant to 19 CFR 102.11, the country of origin of the pipes would be either the U.S. or China, wherever the raw pipe is manufactured. Whatever impact this ruling has upon an antidumping order is a matter within the jurisdiction of the U.S. Department of Commerce.
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.
Sincerely,
Monika R. Brenner
Chief, Valuation & Special Programs Branch