The country of origin of four reservoir hydration systems from China.

N305424 August 1, 2019 CLA-2-39:OT:RR:NC:N4:415 CATEGORY: Country of Origin Mr. Samuel Michael Lopez HydraPak, LLC 6605 San Leandro Street Oakland, CA 94621 RE: The country of origin of four reservoir hydration systems from China. Dear Mr. Lopez: In your letter dated July 23, 2019, you requested a country of origin ruling. The products under consideration are described as reservoir hydration systems and they come in four sizes by volume. They are labeled “Osprey Hydraulics™ Reservoir” for the two liter and three liter versions and “Osprey Hydraulics™ LT Reservoir” for the 1.5 liter and 2.5 liter versions. They are used with hydration packs or bags with a hydration compartment. These hydration systems consist of two subassemblies, the “tube set” and the “reservoir.” The materials are sourced from Taiwan and China. The components are then manufactured in Taiwan and China. The final assembly to create the completed units and packaging is done in Vietnam. Per your request, you wanted to confirm if it is acceptable to declare the country of origin for these hydration systems as Vietnam. The classification of these reservoirs has been previously established, please see Headquarters rulings HQ H173039, dated February 3, 2015. With regard to the appropriate country of origin marking of the reservoir hydration systems, 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. Pursuant to Part 134, Customs Regulations (19 C.F.R. 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs Regulations (19 C.F.R. 134.1(b)), defines “country of origin” 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.” A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986). From the provided documentation, it is in the opinion of this office that these articles obtain the essential character of the finished hydration system when the reservoir component has been completed to a state it can hold water, which is in China. The steps that follow in Vietnam would be considered simple assembly that does not change the reservoir into a new and different article of commerce. As such, it is in the opinion of this office that the country of origin for these hydration systems would be China. 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 Kristopher Burton at kristopher.burton@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division