N342443

N342443 October 1, 2024 OT:RR:NC:N1:102 CATEGORY: Origin; Marking Kimberly Chapa ChampionX 2445 Technology Forest Blvd. Building 4, 12th Floor The Woodlands, TX 77381 RE: The classification, country of origin, and marking of a rod rotator device Dear Ms. Chapa: In your letter dated September 3, 2024, you requested a country of origin and marking ruling on a rod rotator device. The product at issue is a rod rotator device used in the oil and gas industry to extend the service life of sucker rods and related tubing. Fitted to sucker rods in a sucker rod pump oil production system, rod rotators ensure that wear on both the sucker rod and the surrounding tubing is evenly distributed by alleviating friction which occurs during the reciprocating motion of an oil pump. The housing of the rod rotator, which sits between the polished rod clamp and carrier bar of a conventional polished rod and bridle arrangement, is connected to the pump beam by a wire rope. During operation, the reciprocating motion of the pump beam pulls on the wire rope which actuates a lever extending from the rod rotator housing. The up and down motion of the lever causes a worm shaft to turn and an articulating worm gear to rotate. The rotation of the worm gear transmits rotational force (torque) to the sucker rod, creating the desired rotation. Once rotation is initiated, an attached thrust bearing facilitates the maintenance of rotation by creating a near-frictionless articulation between the rotating and fixed components. Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 will then be applied in order. In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes (ENs), although not dispositive nor legally binding, provide a commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). Note 2(a) to Section XVI, HTSUS, eliminates classification as a part of a machine because the rod rotator is a good included in a heading of chapter 84 and is to be classified in its respective heading. Heading 8483, HTSUS provides for “Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof:” The ENs to heading 8483 clarify “The goods covered by this heading are mainly:…(ii) Certain internal parts of a machine, used to transmit power to the various parts of the same machine.” Moreover, the ENs elaborate on gears, “In an assembly of such gears, the teeth of one engage with the teeth of another so that the rotary movement of the first is transmitted to the next…the rotary movement may be transmitted at the same rate, or at a faster or slower rate; according to the type of gear and the angle at which it meshes with the next, the direction of transmission may be changed, or a rotary movement converted into a linear movement or vice versa…The group covers all types of gears including simple cog wheels, bevel gears, conical gears, helical gears, worms, rack and pinion gears, differential gears, etc., and assemblies of such gears.” In summary, the detailed description of the rod rotator provided with your request and summarized above, meets the terms of heading 8483, HTSUS, as elaborated on by the explanatory notes. Specifically, the described purpose and function of the rod rotator is rotating a sucker rod. This rotation is principally accomplished by the internal worm gear in transmitting power from the articulating worm shaft to the sucker rod. This function is specifically described in the 8483 ENs. In accordance with GRI 1 and Note 2(a) to Section XVI, the applicable subheading for the rod rotator will be 8483.90.8080, HTSUS, which provides for Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: Toothed wheels, chain sprockets and other transmission elements presented separately; parts: Other: Other: Other. The general rate of duty is 2.8 percent ad valorem. Section 301 Trade Remedies The "country of origin" is defined in 19 CFR 134.1(b) 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." 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, 69 C.C.P.A. 151 (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). In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly operations that are minimal will generally not result in a substantial transformation. With regard to country of origin four scenarios are discussed. In all scenarios, the rod rotator unit undergoes assembly process in Canada where 27 components of differing origin are fitted and secured together by skilled workers. After assembly, the device undergoes testing to ensure quality and functionality. It is the view of this office that the assembly operations undertaken in Canada are simple assembly operations consisting of connecting and attaching components to each other and do not constitute a substantial transformation. Therefore, in determining the country of origin for all scenarios, the essence of the article is considered. In your letter, you propose the origin of the rod rotator should be the United States, as the origin of the thrust bearing is the United States. We disagree. Although the thrust bearing plays a key complementary role in maintaining rotation by reducing friction once motion is initiated, the product relies on adequate torque transmission by the worm gear directly to the sucker rod to drive the rotation. The purpose and principal function of the article, as reflected by its name, is “rod rotator,” and the component which ultimately delivers this action with each stroke of the pump beam is the worm gear. It is the opinion of this office that the worm gear is the component which is the essence of the rod rotator device. As a result, the country of origin of the rod rotator for the purposes of Section 301 Trade Remedies will be controlled by the country of origin of the worm gear. In scenarios one and two, the country of origin o

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