MAR-2 OT:RR:NC:N1:102
Mr. R. Kevin Williams
Rodriquez O’Donnell Gonzalez & Williams, P.C.
8430 West Bryn Mawr (Suite 525)
Chicago, IL 60631
RE: THE COUNTRY OF ORIGIN MARKING OF LAVATORY FAUCETS; ARTICLE 509
Dear Mr. Williams:
This is in response to your letter dated July 18, 2011 requesting a ruling on behalf of Grohe America on whether the proposed marking “Made in Canada” or “Assembled in Canada” is an acceptable country of origin marking for imported lavatory faucets.
The items in question are described as lavatory faucets assembled in Canada. You state in your letter that the faucets are comprised of two hand-operated “side” valves, one for hot water and one for cold water, a faucet spout and various items necessary to the installation of the completed faucet. You indicate that the faucet is assembled from foreign components originating in various countries including the United States, as well as components of Canadian origin. The assembled components are then tested and packaged together so that the faucets are ready for retail sale upon importation into the United States.
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. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
The country of origin marking requirements for a "good of a NAFTA country" are determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"). Section 134.1(g), Customs Regulations (19 CFR §134.1(g)), defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico, or the U.S. as determined under the NAFTA Marking Rules set out at Part 102, Customs Regulations (19 CFR Part 102). Section 102.11, Customs Regulations (19 CFR §102.11), sets forth the required hierarchy for determining whether a good is a good of a NAFTA country for marking purposes. That section states 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 section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. “Foreign material” is defined in section 102.1(e), Customs Regulations (19 CFR. §102.1(e)), as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.” Based on the information submitted, the faucets are assembled in Canada from Canadian and foreign components. Thus, the faucets are neither wholly obtained or produced, nor produced in Canada exclusively from domestic materials as those terms are defined under section 102.1, Customs Regulations (19 CFR §102.1). Accordingly, section 102.11(a)(3), Customs Regulations (19 CFR §102.11(a)(3)), is the applicable rule that must be applied to determine the origin of the faucet. Pursuant to section 102.11(a)(3), the country of origin of a good is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20, Customs Regulations (19 CFR §102.20). Section 102.20 sets forth the specific tariff classification changes and/or other operations, which are specifically required for the country of origin to be determined on the basis of operations performed on the foreign materials contained in a good. The finished faucets are classifiable under heading 8481, Harmonized Tariff Schedule of the United States (HTSUS), which provides for taps, cocks, valves and similar appliances. In this case, the components used to assemble the valves would be either specifically provided for outside of HTSUS heading 8481, or would be provided for as parts of taps, cocks, valves and similar appliances under subheading 8481.90, HTSUS. For the finished faucets classified in heading 8481, HTSUS, the applicable change in tariff classification set out in section 102.20(o), Section XVI, Chapters 84 through 85, provides:
A change to subheading 8481.10 through 8481.80 from any other heading, or from subheading 8481.90 except when resulting from a simple assembly.
Accordingly, there are two alternative bases by which an article may undergo a tariff shift. Components, such as o-rings, which are provided for and classified outside of heading 8481, HTSUS, will undergo the applicable tariff shift set out in the first part of the above rule because they change headings at the four digit level. Components, such as valve bodies, which are classified as parts of hand-operated valves in subheading 8481.90, HTSUS, will meet the alternative provision in the tariff shift rule if the finished valves are produced other than by a simple assembly.
Simple assembly is defined in 19 CFR §102.1(o) as follows:
Simple assembly means the fitting together of five or fewer parts all which are foreign (excluding fasteners such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or by other means without more than minor processing.
Based on the information made available, the production of the finished faucets does not fall within the definition of a “simple assembly” because assembly involves more than five foreign parts, i.e., originating from elsewhere than Canada. Therefore, for those components classified as parts of valves the alternative test of the tariff shift rule is satisfied because the components change classification in Canada from subheading 8481.90 to subheading 8481.30.10 through 8481.80 by means of processing other than a simple assembly. Accordingly, we find that the country of origin of subject faucets is Canada. The proposed markings “Made in Canada” and “Assembled in Canada” are acceptable forms of marking.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).
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 Kenneth T. Brock at (646) 733-3009.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division