The country of origin of a STP barge

N346582 March 27, 2025 OT:RR:NC:N2:206 CATEGORY: Origin Sam Aspinall Global Trade Consulting Pty Ltd 81-83 Campbell Street Surry Hills 2010 Australia RE: The country of origin of a STP barge Dear Mr. Aspinall: In your letter dated March 9, 2025, you requested a country of origin ruling on the seawater treatment plant (STP) barge, which you filed on behalf of Santos Limited - Oil Search (Alaska). The article under consideration is a STP Barge, which is designed to support sustained oil production by treating seawater for injection into subsurface reservoirs. The barge, which is a floating vessel designed to house the STP, is manufactured in South Korea. The STP, which includes several filtration, sulphate removal, power generation systems and modules and drains, is manufactured in Indonesia, and will be integrated into the barge in Indonesia. Once the integration is complete, the asset will operate as a single, cohesive floating unit. When determining the country of origin, 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). You suggest that the country of origin of the STP barge is Indonesia, since the treatment plant is manufactured and installed onto the barge in Indonesia. We disagree. Although the STP is an important component that enhances the barge and provides a defined purpose, the barge nonetheless remains a floating vessel with or without the STP installed. As it leaves Korea, the barge is a fully functional vessel capable of floating in shallow waters as designed. As a result, it is the opinion of this office that the country of origin of the STP barge is South Korea. Generally, the coastwise laws prohibit the transportation of merchandise between points in the United States embraced within the coastwise laws in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. Such a vessel, after it has obtained a certificate of documentation with a coastwise endorsement from the U.S. Coast Guard, is said to be ?coastwise-qualified.? The coastwise law applicable to the transportation of merchandise, often referred to as ?the Jones Act,? is found at 46 U.S.C. ? 55102. Inquiries regarding the applicability of the Jones Act to your case can be sent to the Commissioner of Customs and Border Protection, Attention: Regulations and Rulings, Office of International Trade, Washington, DC 20229, or by emailing hqrulings@cbp.dhs.gov or jonesactwaiverrequest@cbp.dhs.gov. 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 Liana Alvarez at liana.alvarez@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division