OT:RR:NC:N5:113
Peiting Liang
Taizhou Kloe Daefeng Plumbing Company, Ltd.
No. 1, Shitai Road, Yuhuan Economic Development Zone Taizhou 317608 China
RE: The country of origin of stainless steel corrugated connector
Dear Ms. Liang:
In your letter dated January 4, 2025, you requested a country of origin ruling on stainless steel corrugated connector. Product descriptions and drawings were submitted for our review.
The subject product is described in your letter as “stainless steel corrugated connector that is used for the water supply of the water heater connector. One end will connect the water supply, and the other end will connect the water heater.” Normally the length is 12” to 36”. The tube is made of stainless steel strip and the two ends are various kinds of connections including female nut, male nut, sweat, cross-linked polyethylene (PEX), cold expansion PEX, push-to-connect, push-to-connector with ball valve, and PEX ball valve. The stainless steel tube is produced in Thailand and shipped from Thailand to Taizhou Kloe Dafeng Plumbing Co., Ltd. in China. The end fittings are various stainless steel or brass fittings that will be assembled at both ends of the tube. Next, the finished products will be packed in cartons. Finally, the finished stainless steel corrugated connector will be shipped from China to the United States. You stated that “I would like to select one for example, 3/4" female nut x 3/4" push-to-connect.”
When determining the country of origin for purposes of applying current trade remedies under Section 301, 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 your submission, you provided a description of the production process and exploded drawings for the stainless steel corrugated connector. The production process begins in Thailand where the raw material is made into stainless steel strip that is welded to tube. The tube will go through a corrugating process, is then cut to the needed length, and flattened on both ends. The finished tubes are shipped to the factory in China for assembly. The factory will assemble the nut and sleeve on one end of the tube, then flange. The push fitting will be assembled at the other end of the tube. Next, the finished stainless steel corrugated connector will be packed in cartons and shipped from China to the United States.
We note that in N296289 dated May 4, 2018 that replaces NY N293362 dated February 8, 2018, CBP considered the tariff classification, NAFTA eligibility, and country of origin of braided hose with couplings. The subject hose with couplings includes reinforced copper wire mesh, flexible corrugated pipe/corrugated flexible tubing, and couplings. The function of the coupling is to join with the other fittings using the threads. The braided hose is made in the United States and the couplings are made in Mexico. The braided hose is sent to Mexico for the couplings to be assembled on the hose. Manufacturing processes are performed on the braided hose and couplings in Mexico to arrive at the finished product, that will be packed in cartons and sent back to the United States. In this case, CBP determined the country of origin of the good is the last NAFTA country in which the good underwent processing other than minor processing. CBP concluded that assembling the couplings on the hose was more than minor processing and therefore, the country of origin of the braided hose with couplings is Mexico for both duty and marking purposes.
Regarding the country of origin for the stainless steel corrugated connector under consideration, it is the opinion of this office that the stainless steel tube has undergone sufficient change in China to afterwards emerge with a new name, character, and use that is different from what the tube possessed prior to the assembly process in China. The assembly operation performed in China which includes attaching the connectors to the tube substantially transforms the tube into corrugated connector that is used to connect the water supply and the water heater. As a result, a substantial transformation occurs in China and the country of origin of the stainless steel corrugated connector is China. Therefore, the subject corrugated connector will be subject to the additional duties under Section 301 of the Trade Act of 1974, as amended, upon importation.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division