The tariff classification of cast iron heat exchanger heads from Brazil

NY L87818 October 11, 2005 CLA-2-73:RR:NC:N1:113 L87818 CATEGORY: Classification TARIFF NO.: 7326.90.8587 Ms. Heather Ganley Taco, Inc. 1160 Cranston Street Cranston, RI 02920 RE: The tariff classification of cast iron heat exchanger heads from Brazil Dear Ms. Ganley: In your letter dated September 22, 2005, you requested a tariff classification ruling. The merchandise is the cast iron head for a heat exchanger. The item is a cap, bolted to a steam-to-liquid heat exchanger. The applicable subheading for the product will be 7326.90.8587, Harmonized Tariff Schedule of the United States (HTS), which provides for other articles of iron or steel. The rate of duty will be 2.9 percent ad valorem. Articles classifiable under subheading 7326.90.85, HTS, which are products of Brazil are currently entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP, however, is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term "GSP". In addition, you request a waiver of marking on the cast iron heads. They will be assembled with a shell, tubes, tubes sheet separators, tire rods, nuts and bolts by Taco after importation. 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. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35. In this case, the imported heat exchanger heads are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported products and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin "Made in Brazil". This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist James Smyth at 646-733-3018. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division