The country of origin of unfinished forged pipe fittings (tees)

N299546 August 30, 2018 CLA-2 OT:RR:NC:N1:117 CATEGORY: Country of Origin Mr. David Parker Tiffany Sims CHB, Inc. 225 Corporate Center Dr., Suite C Stockbridge, GA 30281 RE: The country of origin of unfinished forged pipe fittings (tees) Dear Mr. Parker: This is in response to your letter dated July 31, 2018, requesting a ruling on the country of origin of unfinished carbon steel forged pipe fittings (tees), on behalf of your client, Industrial Products International. You indicate that the forged pipe fitting (tee) blanks are manufactured, heat treated and marked in South Korea and have closed ends. After forging in South Korea, the blanks will be sent to China where the ends will be drilled. The drilled tee blanks will be imported by Industrial Products International who in turn sells them to their U.S. customers in the same condition as imported. The U.S. customer will complete the fittings by either threading or socket welding. Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means 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 Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908). It is the opinion of this office that drilling the closed ends of the tee blanks in China does not constitute a substantial transformation. The blanks enter China as unfinished fittings with closed ends and leave as incomplete fittings with drilled ends. Therefore, the drilling does not render a new and different article. Since the blanks are of South Korean origin and no substantial transformation takes place, the country of origin of the carbon steel forged tee blanks is South Korea. 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 mary.ellen.laker@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division