CLA-2-84:OT:RR:NC:N1:102
Mr. Thomas M. Keating
Hodes Keating & Pilon, Attorneys at Law
134 North LaSalle Street,
Suite 1300
Chicago, Illinois 60602
RE: The country of origin marking of a centrifugal pump assembly and application of Section 301 remedies
Dear Mr. Keating:
In your letter dated January 24, 2019, on behalf of Johnson Electric North America, you requested a country of origin marking ruling and a determination on the applicability of certain trade remedies under Section 301. A sample and a detailed description of the manufacturing process to which the components are subjected to were submitted for our review.
The item under consideration is part number 1999-1E30001EU, referred to as centrifugal pump assembly used with domestic appliances, such as a dishwasher. The pump assembly is manufactured by completing various processes that produce subassemblies. The subassemblies and the components that displace fluid are then assembled to each other to produce a pump assembly. All production processes are completed in Serbia.
The production of the pump assembly, which consists of a pump and an electric motor, begins by manufacturing the motor’s rotor and stator subassemblies. The stator subassembly is made from components from China and other countries that are submitted to production processes, such as stamping, curing, winding, crimping, soldering and the injection molding of components, such as the stator housing. The rotor subassembly consists of components from different countries subjected to various production processes, to include magnetization and the molding of a rotor housing and an impeller that is press fitted to the rotor. The rotor and stator subassemblies then undergo an assembly process to form the electric motor. The production process of the pump assembly continues by attaching the motor to the volute, which is molded in Serbia. The complete pump assembly undergoes final testing.
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 U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or 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. 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." United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
Section 134.1(b), Customs 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 U.S. 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. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character, or use differing from that of the constituent article will be considered substantially transformed.
In determining whether the combining of parts or materials constitute a substantial transformation, the issue is the extent of operations performed and whether the parts lose their identity and become an integral part of a new article. In this instance, the impeller and the volute, which are main components of the pump assembly that displace fluid, are formed in Serbia and the foreign components that are imported into Serbia are subjected to complex operations resulting in the individual parts losing their separate identities to become a new article, i.e., a complete pump assembly. As such, we find that the country of origin of part number 1999-1E30001EU, referred to as a centrifugal pump assembly, will be Serbia.
In regards to whether the subject pump assembly is subject to Section 301 trade remedies, this office finds that the processing operations performed in Serbia substantially transforms the various components into a centrifugal pump assembly and as such, is not subject to the Section 301 trade remedies as provided for under 9903.88.01, Harmonized Tariff Schedule of the United States.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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, contact National Import Specialist Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division