CLA-2-84:OT:RR:NC:N1:102
Matthew Hunt
Dominion Customs Consultants
1595 16th Ave. Richmond Hill L4B3N9 Canada
RE: The tariff classification and country of origin of a yard hydrant assembly
Dear Mr. Hunt:
In your letter dated December 13, 2022, you requested a tariff classification and country of origin determination ruling of a yard hydrant assembly, on behalf of your client, Boshart Industries. Descriptive information was provided.
The item under consideration is a yard hydrant assembly connected to a detachable ¾” GHT brass garden connector. The yard hydrant is a manually operated valve and is typically used for irrigation, tool cleaning, lawn maintenance, etc. The yard hydrant consists of a water control valve attached to a handle above ground by means of a connecting rod, and a pipe. It is stated that the valve itself is either a brass or stainless-steel valve, while the head portion of the assembly consists of various metal materials. The rod and pipe that connect the handle at the top of the hydrant to the valve consist of steel material. The pressure rating of the valve is 861.85 kPa.
You suggest the item is classified within heading 8481.80.3040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts: Other appliances: Hand-operated: Of iron or steel: Of iron: Other.
We agree the yard hydrant is classified as a water control valve within heading 8481, as CBP has previously classified a yard hydrant as a valve within heading 8481. See NY R01026, dated December 2, 2004. However, we disagree at the subheading level, as the valve is not an iron valve, but instead a brass or stainless-steel valve.
As such, the applicable subheading for the yard hydrant assembly that incorporates a brass valve, will be 8481.80.1095, HTSUS, which provides for Taps, cocks, valves and similar appliances, …Other appliances: Hand-operated: Of copper: Having a pressure rating of 850 kPa or over: Other. The general rate of duty is 4 percent ad valorem.
The applicable subheading for the yard hydrant assembly incorporating a stainless-steel valve will be 8481.80.3090, HTSUS, which provides for Taps, cocks, valves and similar appliances, …Other appliances: Hand-operated: Of iron or steel: Of steel. The general rate of duty is 5.6 percent.
In regard to country of origin for the purpose of 301 Trade Remedies, it is explained that components from Canada, China, Taiwan and Malaysia are assembled to each other in Canada to form a complete yard hydrant.
The final assembly, which occurs in Canada, begins with a Canadian Hose Bibb Cap being screwed onto the Chinese head assembly. Next, the outside diameter of the Taiwanese steel hub is machined. Adhesive is applied onto the steel hub, which is then inserted into the Taiwanese rubber plunger. Afterwards, lubricant is applied to the rubber plunger, and the plunger with the steel hub is then manually pressed into the Taiwanese valve body (part number 13YH-VB07HCNL). Afterwards, a coupling from Taiwan is connected to the valve body and screwed in place. Next, a connecting rod from Taiwan is then inserted through the valve body, and further, into the steel hub with the plunger. Subsequently, a steel pipe from Malaysia is placed over the connecting rod and screwed to the steel hub. The connecting rod and pipe are then appropriately inserted into the head assembly, and the pipe is screwed in place. Throughout the assembly processes, the yard hydrant assembly undergoes inspections and testing. Prior to being packaged, plastic thread protectors are installed onto the bibb cap and the valve body.
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.
The "country of origin" is defined in 19 CFR 134.1(b) 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 this part.
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, 69 C.C.P.A. 151 (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).
In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly operations that are minimal will generally not result in a substantial transformation.
In regard to the country of origin of valves for the purpose of Section 301 remedies, CBP has previously relied on the origin of the valve body, which is the essence of a valve, when determining the origin of the valve. The assembly of valves do not typically result in a substantial transformation since the assembly processes are not complex, e.g., press-fitting, inserting and the screwing/bolting of components to each other. See New York Rulings N327910, dated September 26, 2022, N322652, dated December 2, 2021, N313282 dated August 12, 2020, and N308442, dated December 19, 2019.
Like the valves in the aforementioned rulings, the assembly processes of the yard hydrant assembly primarily consist of inserting, screwing and press-fitting components to each other. These processes are rather simple and do not constitute a substantial transformation. Therefore, to determine the country of origin of the yard hydrant, we rely on the origin of the valve body, which is the essence of the yard hydrant.
As the origin of the valve body, listed in the Bill of Materials and drawing provided as part number 13YH-VB07HCNL, is Taiwan, the country of origin of the yard hydrant for the purpose of 301 Trade Remedies is Taiwan.
Accordingly, the yard hydrant assembly is not subject to the additional duties applicable to products of China under Section 301 of the Trade Act of 1974, as amended, upon importation into the United States.
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/current.
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,
Steven A. Mack
Director
National Commodity Specialist Division