CLA-2-39:OT:RR:NC:N:5:137
Julie Vair
Tradewin
1015 Third Avenue Seattle, WA 98104
RE: The tariff classification and country of origin of hoses from Taiwan or Thailand
Dear Ms. Vair:
In your letter dated November 13, 2023, you requested a tariff classification and country of origin determination ruling on behalf of your client, Fluidmaster.
The subject of this request are two types of hoses used to connect a variety of appliances (e.g. washing machines, dishwashers, and ice makers) to water sources.
Item 1 consists of a polyvinyl chloride (PVC) hose reinforced with braided stainless steel, with fittings.
Item 2 consists of a PVC hose reinforced with braided polymer, with fittings.
The applicable subheading for the hose reinforced with braided stainless steel will be 3917.39.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Tubes, pipes, and hoses and fittings therefor (for example, joints, elbows, flanges), of plastics: Other tubes, pipes and hoses: Other: Reinforced with metal. The general rate of duty will be 3.1 percent ad valorem.
The applicable subheading for the hose reinforced with braided polymer will be 3917.39.0020, HTSUS, which provides for Tubes, pipes, and hoses and fittings therefor (for example, joints, elbows, flanges), of plastics: Other tubes, pipes and hoses: Other: Other: Of polyvinyl chloride. The general rate of duty will be 3.1 percent ad valorem.
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.
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.”
When considering a product that may be subject to antidumping, countervailing, or other safeguard measures, the substantial transformation analysis is applied to determine the country of origin. See 19 C.F.R. § 102.0; HQ 563205, dated June 28, 2006; see also HQ 563205, dated September 16, 1996 (finding that "the term 'product of' at the least includes manufactured articles of such country or area" and that substantial transformation "is essentially the test used... in determining whether an article is a manufacture of a given country").
The courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff'd, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff'd, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
The subject of this request are hoses used to connect a variety of appliances (e.g. washing machines, dishwashers, and ice makers) to water sources. The hoses undergo two manufacturing phases.
The first manufacturing phase takes place in either Taiwan or Thailand. The hoses are extruded from white PVC, braided with polyester reinforcement, and coated with clear PVC resin. They are then spooled onto rolls for shipment to China and further processing.
The second manufacturing phase takes place in China. The rolls of hose are shipped to China where they are reinforced by braiding with either AISI 304 stainless steel or a polymer material in lieu of stainless steel around the hoses. The hoses will also be cut to length ranging from 6 inches to 300 inches, fittings are attached, and they are packed for shipment.
In this case, the reinforcement with braided materials, cutting to length, and the addition of the Chinese fittings does not substantially transform the hose. Therefore, the country of origin of the finished hose with fittings is considered to be either Taiwan or Thailand. See ruling NY N211518 dated April 25, 2012, and NY N195078 dated December 15, 2011.
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 Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division