The tariff classification and country of origin determination of a tank tee assembly from Canada.

N161402 May 18, 2011 CLA-2-73:OT:RR:NC:1:117 CATEGORY: Classification TARIFF NO.: 7307.19.9060 Reid Shepley Boshart Industries P.O. Box 310 25 Whaley Ave. Milverton, Ontario N0K 1M0 RE: The tariff classification and country of origin determination of a tank tee assembly from Canada. Dear Mr. Shepley: In your letter dated April 6, 2011 you requested a tariff classification ruling. A representative sample was submitted with your request and will be returned to you. The product to be imported is described as a steel tank tee assembly, Part Number 07ST-25-2. The assembly consists of a cast stainless steel tank tee from Indonesia and a stainless steel pipe nipple from China. Each of these foreign components is sent to Canada for packaging and subsequently sold as a single unit to approved dealers. The pieces will be assembled at the time of installation by threading the nipple into the tank tee making a water tight fit. The assembled unit is used in a water pressure system to connect a water supply line from a water well to a water storage tank. The tank tee has several threaded ports for various types of valves and accessories such as a pressure gauge, sediment faucet, pressure relief valve, or manostat. The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. On first glance the subject tank tee assembly may appear to meet all the requirements of a set, however, this “set” consists of two different articles classifiable not in two different headings as GRI 3(b) (b) dictates, but rather in two different subheadings (7307.19 and 7307.29). GRI 6 provides that for legal purposes, classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes, and mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. GRI 6 thus incorporates GRIs 1 through 5 in classifying goods at the subheading level. Since GRI 6 uses the phrase "for legal purposes" the preceding GRIs are to be applied at the level necessary for the final legal classification of the goods for tariff purposes. Therefore, in this particular case, two components classifiable in two different subheadings can still qualify as a set under GRI 3(b). Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. This office considers the tank tee assembly to be a set for tariff classification purposes, with the essential character imparted by the tank tee fitting. The applicable subheading for the tank tee assembly will be 7307.19. 9060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel, cast fittings, other, other, other, other, threaded. The general rate of duty will be 6.2 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 on World Wide Web at http://www.usitc.gov/tata/hts/. You also inquire as to the country of origin for the subject tank tee assembly. Section 134.1(b) of the regulations, defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. 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 this part; however, for a good of a NAFTA country, the NAFTA Marking Rules, as set forth in Part 102 of the Customs Regulations (19 C.F.R. 102), will determine the country of origin. In applying the NAFTA rules of origin, to this specific set of facts, the country of origin of the tank tee assembly is the country or countries of origin of the single material that imparts the essential character to the good. Because the tank tee is the component that gives the assembly its essential character, the country of origin of this set is Indonesia. 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 Mary Ellen Laker at (646) 733-3020. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division