H332516

H332516 May 5, 2025 OT:RR:CTF:FTM H332516 JER CATEGORY: Origin Mr. Rick Van Arnam Barnes, Richardson & Colburn, LLP 1200 New Hampshire Avenue N.W. Suite 725-B Washington, DC 20036 RE: Country of Origin of Metal-Impregnated Chabazite Zeolites Dear Mr. Arnam: This letter is in response to the April 17, 2023, request for a binding ruling pursuant to 19 C.F.R. § 177.1, filed on behalf of BASF Corporation (“BASF” or “Requestor”), concerning the country of origin of certain metal-impregnated zeolites. In connection with this ruling request, BASF requests that certain information be treated as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved. The information contained within brackets in the request will not be released to the public and will be withheld from the published version of this ruling. FACTS: The Chinese originating material is a type of specially templated zeolites, which are microporous aluminosilicates. The subject zeolite is non-molecular in structure and is described as an inorganic solid, composed of [* * * *] in a ratio of [* * * *]. The structure is that of [* * * *].1 The proton form zeolite is in a powder form prior to any of the final operations. The manufacturing process is described by BASF as follows: 1 Chabazites fall within the larger family of minerals called zeolites. Naturally occurring Chabazite zeolite is a tectosilicate mineral belonging to the gmelinite mineral family (a rare series of zeolites) with recognized types, including Ca, K, Na, and Sr forms of chabazite, dependent on the exposed cations. Chabazite, Britannica.Com, , https://www.britannica.com/science/chabazite. Synthetic chabazite is relatively easy to prepare, and therefore, has found numerous industrial applications, such as catalysts in the conversion of methanol to ethylene and as molecular sieves to purified gases in low pressure streams. Chabazite Series, IZA Commission on Natural Zeolites, https://www.iza-online.org/natural/Datasheets/Chabazite/chabazite.htm. 1. Chinese Operations The basic input material is a type of specially templated zeolites, which are microporous aluminosilicates. Its basic framework is created in China via a crystallization process, wherein the organic template guides the structure of the aluminosilicate cage. The organic template guide is burned off during a first calcination process. Next, ammonium is added during an ion exchange stage. During a second calcination process ammonia is burned off, resulting in a proton form zeolite (also known as the H form zeolite). It then undergoes milling as a final production step. 2. Polish Operations The proton form zeolite is then shipped to Poland for further processing. In Poland, the zeolite in powder form is added to an initial mixing chamber. The metal [* * * *] is delivered to the zeolite through an aqueous medium, in this case as a [* * * *]. This solution is added to the agitated powder to form a wet powder. This results in a mixed proton and metal form zeolite, known as the metal-impregnated chabazite. 3. Production of Selective Catalytic Reduction (“SCR”) Catalysts in U.S. and Other Third Countries The metal-impregnated chabazite is then distributed worldwide to coating and canning facilities, including to locations in the United States. At these facilities, the SCR catalysts are produced. A [* * * *] is prepared, whereby [* * * *] is added to the metal- impregnated chabazite, resulting in chabazite in a [* * * *] form. This form results in the proton being exchanged with the [* * * *] ion, with the [* * * *] ion now functioning as the active component used for converting the nitrogen oxide. The [* * * *] is mixed with binders and then coated onto a ceramic substrate, resulting in the creation of a SCR catalyst. Thereafter, the SCR catalyst is sent to a canner to be encased in a metal container, after which the canned SCR catalyst is distributed to automotive original equipment manufacturers worldwide. ISSUE: What is the country of origin of the metal impregnated zeolites? LAW AND ANALYSIS: 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 imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or 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. Congressional intent in enacting 19 U.S.C. § 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is 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 2 marking should influence his will.” United States v. Friedlaender & Co. Inc., 27 CCPA 297, 302, C.A.D. 104 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. § 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 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 [the marking laws and regulations].” A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940); Texas Instruments, Inc. v. United States, 69 C.C.P.A. 142, 681 F.2d 778 (1982). At issue is whether the impregnation of Chinese originating zeolites with metal in Poland, resulting in a metal-impregnated chabazite, constitutes a substantial transformation of the Chinese originating zeolite. Notwithstanding that no chemical reaction occurs when the zeolite is impregnated with the metal nitrate solution, the Requestor contends that the operations in Poland nevertheless result in the creation of a new and different article of commerce where the metal-impregnated chabazite represents a product with a new name, character, and use from that of the un-impregnated zeolite. To determine whether a substantial transformation occurs, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. See National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940); Texas Instruments, Inc. v. United States, 69 C.C.P.A. 142, 681 F.2d 778 (1982). Moreover, the country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases, are also considerations. Id. If the manufacturing or combining process is a minor one which leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 C.I.T. 220, 542 F. Supp. 1026 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Accordingly, 

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 imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or 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. Congressional intent in enacting 19 U.S.C. § 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is 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 2 

 marking should influence his will.” United States v. Friedlaender & Co. Inc., 27 CCPA 297, 302, C.A.D. 104 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. § 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 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 [the marking laws and regulations].” A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940); Texas Instruments, Inc. v. United States, 69 C.C.P.A. 14