CLA-2-84:OT:RR:NC:N1:105
Chris Wang
Qingdao Ecopure Filter Co., Ltd.
No.13, Yishengbai Road, Jimo
Qingdao, 266201
China
RE: The tariff classification and country of origin of replacement water filters
Dear Mr. Wang:
In your letter dated November 8, 2024, you requested a tariff classification and country of origin ruling. Descriptive literature was provided for our review.
The items under consideration are replacement water filters, listed under model numbers EFF-6001A, EFF-6009A, EFF-6014A, EFF-6015A and EFF-6017A. The lead-free replacement refrigerator filters are designed to reduce chlorine, contaminates, and odor for better tasting water. The filters are pressed into a designated slot of the water filtration system of a refrigerator, and purified water is then dispensed through the door of the refrigerator. The filters are to be replaced and discarded by a consumer approximately every six months. The filters are substantially similar and are only differentiated by a slight change in shape that allows them to fit into a specific model refrigerator.
As you suggest in your letter, the applicable subheading for the EFF-6001A, EFF-6009A, EFF-6014A, EFF-6015A and EFF-6017A replacement water filters will be 8421.21.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for liquids: For filtering or purifying water. The general rate of duty is free.
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.
Regarding the country of origin of the water filters, the filters are assembled in China using components manufactured in South Korea and China. The filter element is composed of a Chinese O-ring, upper cover, middle cover, bottom cover, sump, transparent protective film, and a South Korean carbon block. The carbon block removes contaminants from water through a process called adsorption. Adsorption is a process in which contaminants are attracted to the surface of the carbon granules and become trapped in the small pores of the filtration media. The carbon block requires substantial processing to create and accounts for the most substantial costs of the overall filters.
The entire production and packaging process includes nine steps and is completed by eleven workers. The filter element assembly consists of five steps and is completed by six workers. The first step in the filter assembly process involves one worker manually inserting the O-ring into the middle cover/top cover. During the process, visual inspection is conducted to ensure there are no scratches, stains, or color differences. The next step involves one worker operating glue dispensing equipment to glue the middle cover, carbon rod, and bottom cover together. During the process, the carbon block is pressed vertically without damage and evenly bonded. The third step involves one worker operating a rotary welding machine to weld and bond the upper cover, glue-dipping carbon rod, and sump to form a complete filter element. Next is the air tightness test where a worker installs the assembled, finished filter element on the air tightness testing equipment and performs a visual self-inspection. Finally, a worker will place the device in an automatic labeling machine for final processing.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (HQ) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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 regard to the country of origin of the replacement water filters, it is our opinion that the assembly process performed in China is not considered complex and does not constitute a substantial transformation. The process predominantly involves gluing, welding, and pressing various components into place. The combining of these parts in China does not create a new and different article of commerce with a name, character, and use distinct from the individual components. Therefore, to determine the country of origin of the replacement water filters, we rely on the origin of the carbon block, which is the essential component of the replacement water filters. It is the carbon block from South Korea which requires considerable technical experience and customized equipment to produce. It is also the most expensive portion of the filters and is the item performing the filtering of the water. Accordingly, for origin and marking purposes, the country of origin of the EFF-6001A, EFF-6009A, EFF-6014A, EFF-6015A and EFF-6017A replacement water filters will be South Korea, which is where the carbon block is manufactured.
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 Jason Christie at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division