The tariff classification and country of origin marking of a vent chamber from Vietnam

N324708 March 23, 2022 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Classification and Marking TARIFF NO.: 7326.90.8688 Mrs. Cynthia Ann Benway Taco, Inc. 1160 Cranston Street Cranston, Rhode Island 02920 RE: The tariff classification and country of origin marking of a vent chamber from Vietnam Dear Mrs. Benway: In your letter dated March 1, 2022, you requested a tariff classification ruling for a vent chamber. A catalog, drawings, and photographs were submitted for our review. The article under consideration is identified as a vent chamber, item #600-2232-304P. The vent chamber is described as a one-piece casting made from stainless steel. After the casting solidifies and cools, the raw casting is rough shaped by grinding and sanding to remove any excess material. The casting is sand blasted and heat treated to condition the stainless steel, and then machined to its final dimensions. The vent chamber is cylindrical in shape and weighs approximately 3 lbs. It measures approximately 3" in diameter x 5" in length, and the wall thickness varies from .19" to .40". You stated in your letter that “The vent chamber is an empty cylinder with one open end having a lip on the outer diameter and internal metric threads, as well as three machined holes in the wall of the cylinder…The purpose of the vent chamber is to provide a means to connect a specialized air vent to the tank and to provide a protected internal chamber in the tank to protect the float that is attached to the air vent from any debris that might be caught within the tank. The vent chamber is permanently welded into the top of the air dirt separator tank, into which the air vent is screwed, thus connecting the vent to the tank and sealing by means of an O-ring.” The vent chamber is packaged and shipped in crates that will be marked on the outside with “Vietnam” or “Made in Vietnam”. You proposed classification for the vent chamber under heading 7325, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other cast articles of iron or steel”. In support of your proposed classification you cite HQ W968382 dated July 21, 2008, which stated that “The applicable legal notes and section notes do not provide a definition for ‘cast articles’. Heading 7325, HTSUS, covers all cast articles not elsewhere specified or included in the Nomenclature. Generally, casting is characterized by molten blast furnace iron being bottom poured into a mold. After sufficient time for solidification and cooling, the castings are removed from the mold.” We believe the subject vent chamber is properly classified under heading 7326. HQ 963283 dated May 11, 2000, noted that processes in addition to casting will serve to advance cast articles of 7325, HTSUS, to the point where they are no longer covered by heading 7325. As to what processes are sufficient to advance an item beyond a casting was addressed in HQ 963283 which stated "Customs longstanding position on the issue of advancements to castings is that the casting process is considered complete when, after the casting solidifies and cools, surface imperfections are removed by blast cleaning, chipping, burning or combinations of these processes. Certain independent and additional processes not merely incidental to the general foundry work are considered to advance an article beyond casting." As stated in NY G81782 dated September 25, 2000, “Once the steel casting is further processed…by machine-lathing to specific size and drilling holes, it has been advanced beyond the definition of cast article.” In the instant case, after the casting process is complete, the casting is heat treated to condition the stainless steel and then machined to its final dimensions before importation into the United States. Therefore, the vent chamber has been advanced beyond the condition allowed for classification in heading 7325. The subject vent chamber would be classified under heading 7326, HTSUS, which provides for “Other articles of iron or steel.” The applicable subheading for the vent chamber, item #600-2232-304P, will be 7326.90.8688, HTSUS, which provides for Other articles of iron or steel: Other: Other…Other.  The rate of duty will be 2.9 percent ad valorem. You also requested an exemption from individually marking the imported vent chambers with the country of origin if they are later processed in the U.S. by a U.S. manufacturer. You indicated that the vent chambers will be imported in crates that are marked on the outside with “Vietnam” or “Made in Vietnam” stamped on the crates. A photograph of the marked crate was submitted with your letter for our review. The marking statute, 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. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35. At the time of import into the U.S. the vent chambers will be shipped to one of two places depending on how urgently the vent chambers are needed. The first is Taco's central warehouse in Rhode Island and the second is Taco's welding and fabrication factory in Maine. The Maine location is the only manufacturing facility that uses the vent chambers. When the vent chamber is received at Taco USA it is considered a complete subassembly. This item is not for resale and is only used in the manufacture of Taco proprietary air dirt separators. There are no additional operations performed on the vent chamber after receipt at Taco USA and before it is welded into the top head of the air dirt separator tank. You stated that “Taco will be the last person in the U.S. to receive the vent chamber in the form it is imported. Taco is the direct manufacturer of the final product (air dirt separator tank). We perform all of the manufacturing of the final component at our facility in Fall River, Maine.” Regarding the imported vent chambers, the only manufacturing facility to which the articles will be shipped to be processed into the complete product is Taco's welding and fabrication factory in Maine. After the vent chamber is received at Taco USA it is welded into the top head of the air dirt separator tank to form the final product. In the opinion of our office, permanently attaching the vent chamber to the air dirt separator tank constitutes a substantial transformation because the resulting product is a new and different article of commerce. The final product is a complete air dirt separator tank to which an air vent will be attached. In this case, the imported vent chambers are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer (Taco USA) is the ultimate purchaser of the vent chambers. Under 19 CFR 134.35, the vent chambers are excepted from marking and only the outermost containers which reach the ultimate purchaser are required to be marked with the country of origin. Your proposed marking, stamping the crates on the outside with “Vietnam” or “Made in Vietnam”, is an acceptable country of origin marking for the vent chambers. 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 Ann Taub at ann.taub@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division