The country of origin of a pump barrel

N333514 July 11, 2023 OT:RR:NC:N1:102 CATEGORY: Origin Alec Zorich Givens & Johnston, PLLC 950 Echo Ln., Ste.360Houston, TX 77024 RE:  The country of origin of a pump barrel Dear Mr. Zorich: In your letter dated June 13, 2023, you requested a country of origin ruling on a pump barrel, on behalf of your client, Hemmen Associates Incorporated. The item at issue is referred to as a pump barrel, which allows water to flow in a variety of pumping applications, e.g., injection of saltwater in oil and gas sectors. Each pump barrel primarily consists of an outer tube housing, a power transmitting shaft, an impeller, a diffuser, spacers, bearings, bearing housings, and compression nuts. Once the pump barrel is connected to an electrical motor, the pump’s shaft drives the impeller to circulate fluid to a stationary diffuser. The number of impellers incorporated into the pump barrel depends on the application of the pump barrel and can range from one to one hundred and fifty impellers.   In regard to country of origin, it is stated that components from China are assembled to each other in Canada. Prior to the final assembly of the pump barrel, a metal bar from China is cut, splined, and turned in Canada. Keying the spline of the bar at both ends allows the bar to be mechanically coupled to the motor, and keying the bar across allows the bar to be coupled with the impellers. In some instances, the ends of the bar are turned to downsize the diameter for coupling purpose. Depending on the application, the Chinese impeller may be subjected to additional processes in Canada. Such processes include drilling the impeller to establish balance holes, trimming the outside diameter, and removing material from the inside diameter to accept a bushing (referred to as an “opening” process). You mention in your letter that while the impeller may need to be trimmed, drilled or opened, the impeller can circulate fluid prior to being imported into Canada. During the final assembly of the pump barrel, which also occurs in Canada, a Chinese bearing is installed into a Chinese bearing housing using heat. Afterwards, the bearing housing with the bearing, the impeller, and the Chinese diffuser are installed into the outer tube housing of the pump barrel, which is either from China or Canada, and onto the shaft using a sliding process. The sliding processes and the installation of the impeller, diffuser and housed bearing are repeated according to the requirements of the pump barrel’s application.  Afterwards, spacers are installed into the outer tube housing, onto the shaft using a sliding process. Compression nuts from China are installed and tightened. Amongst these steps, a compression sleeve (a tube) from China is cut to length and then inserted thru one side of the outer tube housing, through a designated hole of the power transmitting shaft and exited through the other side of the outer tube housing. The compression sleeve is tightened to pinch the diffusers and compress the stage stack.  The discharge head is inserted in the housing with a pneumatic torque tool. The finished pump barrel then undergoes various inspections and tests. 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. 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 test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or 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 the instance case, the assembly processes that occur in Canada are rather simple and do not constitute a substantial transformation.  The processes of sliding, inserting, securing compression nuts, and tightening components are not considered to be complex.  The processes performed in Canada do not change the shape, character or predetermined use of the majority of the Chinese inputs. It is noted that the shaft, the impeller and the compression sleeve are subject to additional processes in Canada. However, the compression sleeve is simply cut to length and the processing that the impeller undergoes (the trimming, opening, and drilling) in Canada is minimal because while the impeller is modified to match the application of the pump barrel, the impeller is capable of displacing liquid prior to the processing that may occur in Canada. Instead, like the pump end in Headquarters ruling H313089 (February 16, 2021), we rely on the origin of the impeller to determine the origin of the pump barrel as it is the essential component.  The impeller provides the force necessary to displace fluid and as such, it imparts the character of the pump.   As the impeller is of Chinese origin, the country of origin of the finished pump barrel is China for the purposes of Section 301 of the Trade Act of 1974, at the time of importation into the United States. Please note that 19 C.F.R. § 177.9(b)(1) provides that “each ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.  The application of a ruling letter by a Customs and Border Protection field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.” This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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 Sandra Martinez at sandra.martinez@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division