The country of origin of a spring return pneumatic actuator.

N308383 January 15, 2020 MAR-2:OT:RR:NC:N2:206 CATEGORY: Country of Origin Jeffrey Hopkins Corporate Counsel Bray International, Inc. 13333 Westland East Blvd. Houston, Texas 77041 RE: The country of origin of a spring return pneumatic actuator. Dear Mr. Hopkins: This is in response to your letter dated December 16, 2019, requesting a ruling on the country of origin for S93 spring return pneumatic actuators. The items under consideration are S93 spring return pneumatic actuators: model numbers 930634-11300532, 930833-11300532, 931284-11300532, and 931604-11300532. Pneumatic actuators convert energy-compressed gas (air) into motion. The introduction of pressure between the pistons and between the pistons and end caps drives the pistons in a linear fashion that translates to a rotational force on the pinion when the piston’s “teeth” engage the pinion. In addition to standard pneumatic action, the S93 has self-contained spring cartridges, which store energy in the form of spring compression. The stored energy is used to cycle a pneumatic actuator on the loss of supplied air. The actuators’ spring cartridge is a pre-compressed spring that is placed between the piston and the end cap. In the event of loss of air supply, the spring cartridge extends to its full length with force pushing the pistons, which in turn rotates the pinion. The spring return pneumatic actuators are referred to as “fail safe” actuators because the spring cartridge provides power to the actuator to turn the automated valve to a “safe” operating position (either open or closed) in the event air supply to the actuator ceases. You inquired what the country of origin of the S93 spring return pneumatic actuators would be under the following three scenarios: In the first scenario, the body, pinion, pinion bearings, piston bearing pad, piston guide ring, IBTS cam, travel stop spacer, indicator, and spring cartridge are sourced from China. These components are assembled together with other Malaysian components, such as pistons, end caps, and nameplate in Malaysia. In the second scenario, the pinion is sourced from Malaysia or another non-China country. The rest of the scenario is identical to the first one. In the third scenario, the assembling of the spring cartridge would be done in Malaysia or another non-China country, and then such spring cartridges would be assembled along with the non-China originating pinion, pistons, end caps, and nameplate with the Chinese originating components into a finished pneumatic actuator. 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. The courts have held that 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. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983) (Uniroyal). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). In Uniroyal case, the court held that an upper was not substantially transformed when attached to an outsole to form a shoe and that the upper was "the very essence of the completed shoe". Based on the information you provided, the assembly in Malaysia of Chinese and Malaysian components does not result in a substantial transformation. As a result, we need to determine what the essence of the S93 actuator is. Air pressure is introduced between the pistons driving them out towards the actuator ends while compressing the springs. This causes the piston racks to drive the pinion in a counterclockwise direction, resulting in a quarter-turn motion. This rotation is transferred to the valve shaft, opening the valve. To close the valve, air pressure is relieved allowing the spring tension to move the pistons inward and exhausts the air from actuator. This causes the piston racks to drive the pinion in a clockwise direction, resulting in a quarter-turn rotation. This rotation is transferred to the valve shaft, closing the valve. Since it is the pinion that opens and closes the valve, the very essence of the entire S93 actuator will be the pinion. Therefore, the S93 spring return pneumatic actuators (model numbers 930634-11300532, 930833-11300532, 931284-11300532, and 931604-11300532) are considered a product of China for both origin and marking purposes in the first scenario, and Malaysia in the second and third scenarios at the time of importation into the United States. 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, please contact National Import Specialist Liana Alvarez at liana.alvarez@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division