United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2002 HQ Rulings > HQ 561827 - HQ 562175 > HQ 561885

Previous Ruling Next Ruling
HQ 561885





April 18, 2002

MAR-05 RR:CR:SM 561885 KKV

CATEGORY: MARKING

Mr. R. Kevin Williams
Rodriguez, O’Donnell,
Fuerst, Gonzalez and Williams
20 North Wacker Drive
Suite 1416
Chicago, IL 60606

RE: Country of origin and marking requirements applicable to stainless steel bends, tees and other tube and pipe fittings; NAFTA Marking Rules; 19 CFR 102.11(a)(3); Article 509

Dear Mr. Williams:

This is in response to your letter dated September 1, 2000, on behalf of your client Tri-Clover, Inc., regarding the country of origin marking requirements applicable to certain pipe fittings. We regret the delay in responding.

FACTS:

The subject stainless steel bends, tees and other tube and pipe fittings are made by Alfa Laval Flow S.A. de C.V. in Mexico from stainless steel tube of U.S. origin. The tube is exported to Mexico in 20-foot lengths, in a variety of diameters. The tube with a diameter of less than one inch is seamless. The tube with a diameter greater than one inch is welded. The tube measuring one inch in diameter may be seamless or welded.

In Mexico, the tube is cut and formed into bends, tees and other fittings. Ferrules are usually welded to the formed fittings. The fittings are then polished and shipped to the U.S., where they undergo no further processing before sale to Tri-Clover’s customers.

ISSUE:

What are the country of origin marking requirements applicable to imported pipe fittings processed in Mexico from stainless steel tube of U.S. origin?

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the United States 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 United States the English name of the country of origin of the article. By enacting 19 U.S.C. 1304, Congress intended to ensure that the ultimate purchaser would be able to know by inspecting the marking on the imported goods the country of which the goods are the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will. United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 C.A.D. 104 (1940).

Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” 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; however for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.

Section 134.1(j), Customs Regulations (19 CFR 134.1(j)), provides that the “NAFTA Marking Rules” are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g), Customs Regulations (19 CFR 134.1(g)), defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules, set forth at 19 CFR Part 102.

Section 102.11, Customs Regulations (19 CFR 102.11), sets forth the required hierarchy for determining whether a good is a good of a NAFTA country for marking purposes. This section states that the country of origin of a good is the country in which:

(1) The good is wholly obtained or produced;

(2) The good is produced exclusively from domestic materials; or

Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

Based on the information provided, stainless steel tube of U.S. origin is exported to Mexico in 20-foot straight lengths for additional processing. Because the metal tubes are processed in Mexico of U.S. material, the tubes are neither wholly obtained or produced, nor produced exclusively from domestic materials. Accordingly, neither 19 CFR 102.11(a)(1) or 102.11(a)(2) may be used to determine the origin of the finished articles, and analysis must continue to 19 CFR 102.11(a)(3).

Pursuant to 19 CFR 102.11(a)(3), the country of origin of a good is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 CFR 102.20, and satisfies any other applicable requirements of that section. In the case before us, because the finished metal tubes imported into the U.S. from Mexico are classified in subheading 7307.23.00, HTSUS, the change in tariff classification must be made in accordance with section 102.20(o), Section XV: Chapters 72 through 83, heading 7.01-7307, HTSUS, which requires “[a] change to heading 7301 through 7307 from any other heading, including another heading within that group.”

With regard to the classification of the exported tube, your submission was reviewed by the National Commodity Specialist Division, New York, which confirms that the exported articles are classifiable in subheading 7304 or 7306, HTSUS, depending upon whether they are seamless or welded. As a result of processing performed in Mexico, the finished articles are classifiable under heading, 7307, HTSUS. Therefore, there is an applicable change in tariff classification within the requirements of section 102.20. Consequently, the country of origin of the returned fittings is Mexico, and they must be marked accordingly upon importation into the United States.

HOLDING:

Based upon the information provided, the country of origin of stainless steel pipe fittings manufactured in Mexico from U.S.-origin steel tubes is Mexico, pursuant to 19 CFR 102.11(a)(3), and must be marked accordingly upon return to the United States.

A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely

John Durant
Director
Commercial Rulings Division


Previous Ruling Next Ruling

See also: