The country of origin of boiler wall panels and superheater pendants

N351185 July 22, 2025 OT:RR:NC:N1:103 CATEGORY: Origin Paul Fudacz Braumiller Law Group, PLLC 5220 Spring Valley Road, Suite 200 Dallas, TX 75254 RE: The country of origin of boiler wall panels and superheater pendants Dear Mr. Fudacz: In your letter dated July 10, 2025, you requested a country of origin ruling on behalf of your client, Babcock Power Services Inc. The first items under consideration are referred to as boiler wall panels, which include a flat panel configuration and a bent panel configuration. They are described as replacement components for a power generating boiler used in a fossil fuel utility, and are made from carbon or alloy steel tubes, membrane bars, and an Inconel overlay. The subject boiler wall panels are identical in function to the panels discussed in New York Ruling N351184 but will be produced using a different manufacturing scenario. The production of the boiler wall panels will occur in Vietnam. Material lengths of loose carbon or alloy steel tubing (manufactured to ASTM A213 specification) and flat steel membrane bars are sourced from China and sent to Vietnam where they are arranged in an alternating sequence to create a flat panel. Each panel will consist of approximately 26 tubes that are welded together using either a metal inert gas welding process or a submerged arc welding process. Afterwards, a 180-degree weld overlay is applied to one face of the panel. For panels that require a bent configuration, a panel bending machine is used to bend a flat panel assembly to the required bend radius. When determining the country of origin for purposes of applying current trade remedies under Section 301 and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter 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). CBP has held that whether an assembly process is sufficiently complex to rise to the level of a substantial transformation is determined upon consideration of all the operations that occur within that country. In viewing the information provided with your submission, material lengths of tubing, cast slip spacers, and overlay wire are sent to Vietnam where they are assembled into a boiler wall panel. These materials emerge from the process with a new name, character, and use, different from that possessed by the metal tubing prior to the processing. Thus, based on the totality of the circumstances, the country of origin of the flat panel boiler wall panel and bent panel boiler wall panel will be Vietnam. The second item under consideration is referred to as a superheater pendant, which is described as a flat assembly with vertical tubes arranged in a series of U-shaped, nested loops. The outermost tube forms the largest radius loop and curves around the outer edge of the pendant. Each subsequent tube is bent with a slightly tighter bend radius and attached to the preceding tube using slip spacers. Depending on the boiler, each superheater pendant assembly will contain between six and twenty-plus stainless steel and alloy tubes. Three manufacturing scenarios were presented for the superheater pendant, with all three scenarios using Chinese-sourced carbon or alloy steel tubing (manufactured to ASTM A213 specification), cast slip spacers, and overlay weld wire. Further production will occur in Vietnam in all three scenarios. In the first scenario, a 360-degree welding overlay is applied to the outer surface of each tube using an automated overlay machine. Using cold bending and a horizontal tube bending machine, the straight tubes are bent into U-shaped tubes and arranged side-by-side in a vertical row supported by spacers. The components are welded together to form a finished assembly with the previously described configuration. In the second scenario, all operational steps are the same as the first scenario except the 360-degree welding overlay is applied to each tube in China before it is sent to Vietnam where it is bent, assembled, and welded into a superheater pendant. In the third scenario, all operational steps are the same as the first scenario except no welding overlay is required. The metal tubing is sent directly to Vietnam where it is bent, assembled with other tubing, and welded into a superheater pendant. In viewing the information provided with your submission, material lengths of straight tubing, cast slip spacers, and Inconel wire are sent to Vietnam where they are assembled into a superheater pendant. These materials emerge from the process with a new name, character, and use, different from that possessed by the components/materials (e.g., tubing, spacers, or wire inlay) prior to the processing. Thus, based on the totality of the circumstances, the country of origin of the superheater pendant will be Vietnam in all three scenarios. 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 Huang at paul.huang@cbp.dhs.gov. Sincerely, (for) James Forkan Acting Director National Commodity Specialist Division