COUNTRY OF ORIGIN MARKING OF IMPORTED OILY WATER SEPARATOR

N124715 October 22, 2010 MAR-2 OT:RR:NC:1:120 CATEGORY: MARKING Mr. Timothy Guinan Compass Water Solutions (fka Coffin World Water Systems) 1732 McGaw Avenue Irvine, CA 92614 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED OILY WATER SEPARATOR Dear Mr. Guinan: This is in response to your letter dated September 9, 2010 requesting a ruling on the country of origin marking requirements for imported oily water separators assembled in Vietnam from U.S. and Vietnamese components. A marked sample was not submitted with your letter for review. The Ultra-Sep Oily Water Separator imported from Vietnam was classified in subheading 8421.21.0000 via NY N118436. It is designed to remove oil, however, solids/dirt and air are also removed. Oil droplets coalesce and rise to the top of the vessel for collection while particulate impurities settle to the bottom for removal. Thus, subheading 8421.21.0000, which provides for filtering or purifying water is the most specific description. The Ultra-Sep Oily Water Separator comprises the following Vietnamese origin components: steel tank housing with a built-in baffle to direct the flow of the water, the manifold and skid. However, the bulk and value of the assembled Water Separator components are of US origin. Specifically, the spirolator, heli-sep honeycomb PVC matrix, oleophillic polishing beads, particulate filters, membranes and 5 micron filter are of US origin, and impart the essential character of the Ultra-Sep Oily Water Separator. The heli-sep honeycomb PVC matrix is placed within the baffle to function as a baffle, causing free oil to coalesce and particulates to settle. The spirolator rejects oil and dirt at the membrane surface to produce clean water, and the water is drawn through the oleophillic polishing beads, which trap the remaining oil. Processed water is directed through particulate filtration, which further reduces solids. These components are exported to Vietnam as filtering and purifying machinery and apparatus and after assembly, imported to the US as filtering and purifying machinery and apparatus with no change in classification. The US components are assembled to the Vietnamese components in Vietnam. The US filtering components impart the essential character of the imported Ultra-Sep Oily Water Separator, which is classified in subheading 8421.21.0000. 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. 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; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.” For tariff purposes, the courts have held that a substantial transformation occurs if a new and different article emerges having a distinctive name, character or use. AnheuserBusch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). In this case, the assembly process does not result in a substantial transformation. The assembled Ultra-Sep Oily Water Separator components does not have a distinctive character or use different from the unassembled filtering and purifying machinery, and therefore is a good of the United States for marking purposes. Accordingly, it will not be required to have any country of origin marking pursuant to 19 U.S.C. 1304 when imported into the United States. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Denise Faingar at (646) 733-3010. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division