The country of origin of a pump end for the purpose of trade remedies under Section 301

N321061 September 14, 2021 CLA-2 OT:RR:NC:N1:102 CATEGORY: Origin Melissa M. Brewer Kelley Drye & Warren LLP 3050 K Street NW Washington, District of Columbia 20007 RE: The country of origin of a pump end for the purpose of trade remedies under Section 301 Dear Ms. Brewer: In your letter dated August 16, 2021, on behalf of Sulzer Pump Solutions, Inc., you requested a ruling on the country of origin of a pump end for the purpose of 301 Trade Remedies. It is mentioned that a similar country of origin review for the same product was determined in Headquarters ruling H313089, dated February 16, 2021, and now different country of origin scenarios are submitted for our review. The product at issue is a pump end used in vertical pumps that are designed to move liquid in a variety of applications. A complete vertical pump primarily consists of a motor, a discharge head, a column, and a pump end that may incorporate two to eight impellers. The pump end is positioned at the lower end of the vertical pump, and in use, is placed below the liquid line. The pump end moves liquid from the pump’s point of entry up through the column and towards the discharge head. The pump end consists of a suction bell, a pump shaft, an impeller, a bowl, a bowl bearing, an impeller wear ring, a stationary wear ring, thrust ring, a thrust ring retainer, a locking collet, a suction bell bearing, and an adaptor flange for smaller models. In some instances, a suction strainer is present. With regard to the country of origin for 301 Trade Remedy purposes, two scenarios are discussed. In scenario one, the impeller is of U.S. origin, the suction bell and bowl are of Chinese origin, and the remainder of the 10 components are of Canadian origin. In scenario two, the impeller is of U.S. origin, the suction bell and bowl are of Chinese origin, and the remaining 10 components are of U.S., Canadian and Mexican origin. In both scenarios, the pump end is assembled in Canada. The assembly of each pump for both scenarios occurs in Canada and begins by mounting and bolting the suction bowl to the suction bell. The pump shaft is then inserted into the suction bell and afterwards, an impeller is slid onto the head shaft with a locking collet and if needed, a split ring is also installed. Depending on the application of the pump, the pump end and impeller may undergo a coating and heat treatment process. If the pump end is of a multistage configuration, a second bowl is placed over the shaft and another impeller is bolted into position. These steps are repeated according to the job requirements (i.e., depending on how many bowls are required for the pump end per customer specifications). In the final stage, the adapter flange is slid over the shaft and bolted to the top bowl. The first time the aforementioned steps are completed, a temporary pump end is created for testing by being attached to a temporary test column section, discharge head and certified lab motor. The temporary pump is then analyzed and subsequently disassembled for any further processing. This process may be repeated as needed. Once the pump end is finished and testing is completed, the exterior of the pump end is painted or coated, if required. The complete pump end is then exported from Canada and shipped to the U.S., later to be connected to a pump column, discharge head and motor. It is mentioned that prior to installation, each metal impeller is trimmed. The impeller is imported into Canada in a standard form and is then modified by being subjected to trimming, filing, and balancing processes. Afterwards, a final filing process occurs to remove metal burrs. These processes are said to affect the outer diameter and shape of the impeller’s vanes. With regard to the request for the appropriate country of origin of the pump end, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country 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 this part. As stated in HQ 735009, dated July 30, 1993, “The country of origin is the country where the article last underwent a ‘substantial transformation’ that is, processing which results in a change in the article's name, character, or use.” The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, and use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly operations that are minimal will generally not result in a substantial transformation. In both scenarios, components from the U.S., China, Canada, and Mexico are assembled to each other in Canada. During the assembly of the pump end, components are mounted, bolted, inserted, and slid onto each other. Such assembly processes are regarded as being rather simple, which is explained in Headquarters ruling H303864, dated December 26, 2019. Ruling H303864 explains that connecting or attaching components to each other to form a pump or pump assembly is considered simple assembly and further states that the country of origin of pumps for 301 purposes is based on the country of origin of the item that imparts the essence of the pump or pump assembly. Here, we find that in both scenarios, the U.S. impeller is the essence of the pump end, as it displaces liquid from the entry of the pump through the column and towards the pump’s discharge head. Thus, the country of origin of the pump end in both scenarios, solely for the purpose of 301 Trade Remedies, is the U.S. It is recognized that each impeller is further processed in Canada by being subjected to trimming, filing, and balancing processes. However, in viewing the photographs provided with the submission, the impeller appears functional prior to undergoing these processes, as they have the final shape and outline of a finalized impeller. The trimming, filing, and balancing processes that occur in Canada do not substantially transform the impeller. The impeller imparts the essential character of a complete or finished impeller prior to being imported into Canada. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. Part 177). The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request.  This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1).  This section states that a ruling letter is issued on the assumption that all the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect.  In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.  You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. 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 Sandra Martinez at Sandra.Martinez@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division