The country of origin and applicability of Section 301 remedies regarding a sink faucet and pop-up drain

N343447 November 20, 2024 OT:RR:NC:N1:102 CATEGORY: Origin Anna Zajac Flexport Customs LLC 760 Market Street, 8th FloorSan Francisco, CA 94102 RE:  The country of origin and applicability of Section 301 remedies regarding a sink faucet and pop-up drain Dear Ms. Zajac: In your letter dated October 21, 2024, you requested a country of origin ruling on a sink faucet and pop-up drain on behalf of your client, Gerber Plumbing Fixtures LLC. Technical information was provided with your submission. The item under consideration is described as a double-handle, three-hole bathroom sink faucet with four-inch center handle spacing and a mid-arc spout, packaged for retail with an accompanying pop-up drain assembly (item number F51A1160CP-LGA6). As stated in your letter, there are four country of origin scenarios for consideration. In scenario one, the assembly of the faucet occurs in Thailand of primarily Thai and Chinese components. First, zinc alloy ingots are melted in a furnace and formed into the desired shapes of faucet handles and the cover plate using Thai-designed and manufactured diecast tools. The die cast parts are then sanded and machined to tap and notch the items for mating with other parts of the system for functional purposes. After sanding, the parts are electroplated for corrosion resistance and durability. Throughout the initial assembly process, the components undergo testing for quality control. Regarding the valve body assembly in Thailand, glass fiber reinforced semi-crystalline polyamide pellets are heated, dehumidified, melted, and injection molded into valve raceway pipes. The Thai manufactured plastic raceways are combined with Chinese manufactured threaded brass pipe segments and over-molded with additional glass fiber reinforced semi-crystalline polyamides to create the valve body. Spout pipe segments are formed in Thailand by plastic injection molding of glass fiber reinforced semi-crystalline polyamide. The pipe segments are assembled manually and over-molded with additional glass fiber reinforced semi-crystalline polyamide which results in the final spout. O-rings from China are inserted into the spout with lubrication, and the spout is connected to the valve body via press fitting and twisting. Using component parts from China, the valve cartridges are assembled by specially trained personnel in Thailand. Comprised of injection molded plastic parts, a brass stem, gaskets, and two internal ceramic discs, the principal function and purpose of a valve cartridge is to control the flow of water. Assembly begins with greasing and sliding a gasket onto a brass stem. Following that, two greased ceramic discs (top rotating and bottom fixed) are stacked in the correct orientation and a plastic insert is placed on top of the rotating disc. The brass stem is placed onto the plastic insert to allow for rotation of the ceramic disc. Next, a greased plastic housing is installed over the stack of brass stem, plastic insert, and ceramic discs. A greased O-ring is slid onto a notch around the cartridge housing and a greased gasket plug is press fit into the bottom of the cartridge housing. To complete the valve cartridge assembly, a plastic clip is attached to the brass stem to hold the cartridge securely in place. Testing is conducted to verify specific quality requirements. The fully assembled valve cartridges are silicon-lubricated and press-fitted by hand into the valve body. Extension rods, also from China, are inserted on top of each valve cartridge spindle to articulate with the handles. At this stage, plastic washers are placed on top of the valve cartridges and adjusting rings are manually press fitted over each of the washers. The adjusting rings are machine-driven into the threads of the valve body to secure the valve cartridges and fix the cover plate to the valve body. The aerator and aerator housing from Germany are installed into the pipe with a washer and gasket from China using a pneumatic driver. The remaining assembly steps consist of installing the pipe back plate, handles and plugs, and base plate onto the valve body assembly. Finally, the valve body assembly is connected to a leakage testing machine to check for water leakage. The pop-up drain stopper is comprised of a metal cover from China, a gasket from China, and an injection-molded stopper body from Thailand. The metal cover is crimped with a stamping press onto the stopper body in Thailand. The gasket is then installed onto the stopper body by hand. Regarding the pop-up drain valve body assembly, after the valve body is injection molded in Thailand, finished metal trim is crimped onto it using a stamping process in Thailand. Also in Thailand, an O-ring from China is installed onto the valve body assembly to ensure a tight connection with the lever system. Both the stopper and body assembly are fitted together and packaged with loose components from China, including a lever, lift rod, connectors, and springs for final assembly by the end-user in the U.S. The hand operated lift rod passes through an opening in the faucet base and connects to the pop-up drain valve body using a lift rod strap and ball rod. The horizontal ball rod opens and closes the pop-up drain stopper when actuated. Scenario two is the same as scenario one except the plastic cartridge housing will be produced in Thailand via injection molding. Scenario three is the same as scenario one except the zinc faucet parts, i.e., handles, waterspout, and base plate will be produced in China. Scenario four is the same as scenario one except the plastic cartridge housing will be produced in Thailand via injection molding and the zinc faucet parts, i.e., handles, waterspout, and base plate will be produced in China. When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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). Regarding the country of origin of faucets, CBP has historically looked to the origin of the valve body assembly because it is notable in size and dominant by function. It houses the components that when combined, creates a valve to perform the essential function of a faucet, i.e., regulating the flow of water. Although components such as handles, a spout, and a base plate play a functional role and may factor into a consumer’s decision-making process, on balance, they serve more of a decorative purpose relative to the valve body and are less significant components. See rulings HQ H321630 (June 27, 2022), N313302 (August 4, 2020), and N309562 (March 4, 2020). Here, a similar analysis applies. The origin of the sink faucet relies on the origin of the valve (valve body with valve cartridges installed), and the handles, spout, and base plate represent less significant, decorative components. Regarding the origin of the valve, in scenario one, the valve body, which performs the essential function of the sink faucet, is assembled in Thailand from Thai and Chinese components. The assembly of the cartridges to the valve body involves complex steps and therefore, combined with the manufacturing of the valve body, constitutes a substantial transformation. Accordingly, the origin of the valve is Thailand. As the origin of the valve is Thailand, the country of origin of the sink faucet in scenario one will be Thailand. Hence, the sink faucet will not be subject to Section 301 remedies. In scenario two, shifting the origin of the plastic cartridge housing from China to Thailand will not change the country of origin because it will match the origin of the determining valve body (Thailand). The country of origin of the sink faucet in scenario two will be Thailand. Therefore, the sink faucet will not be subject to Section 301 remedies. In scenario three, sourcing the zinc faucet parts, i.e., handles, waterspout, and base plate from China, will not change the country of origin because they are less significant components and will be substantially transformed during assembly in Thailand. The country of origin of the sink faucet in scenario three will be Thailand. Thus, the sink faucet will not be subject to Section 301 remedies. In scenario four, shifting the origin of the plastic cartridge housing from China to Thailand will not change the country of origin because it will match the origin of the determining valve body (Thailand). Additionally, sourcing the zinc faucet parts, i.e., handles, waterspout, and base plate from China will not change the country of origin because they are less significant components and will be substantially transformed during assembly in Thailand. The country of origin of the sink faucet in scenario four will be Thailand. As a result, the sink faucet will not be subject to Section 301 remedies. Regarding the pop-up drain, the drain stopper and valve body perform the essential function of regulating the flow of water in the assembly and constitute a valve. The drain stopper and valve body are manufactured in Thailand and fitted with less significant Chinese components such as gaskets, a metal cover, and metal trim. This scenario is analogous to ruling N309562 which made clear that the origin of the valve will control the country of origin of the pop-up drain. Accordingly, the origin of the valve is Thailand. As such, the country of origin of the pop-up drain will be Thailand. Therefore, the pop-up drain will not be subject to Section 301 remedies.   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 of 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. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. 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 Paul Taylor at paul.m.taylor@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division