The country of origin and eligibility under 9802.00.50 of aluminum louvers from Mexico for alteration

N299593 September 4, 2018 CLA-2-98:OT:RR:NC:N1:117 CATEGORY: Classification TARIFF NO.: 9802.00.50 Mr. Leslie Alan Glick Butzel Long 1909 K Street N.W. Washington, D.C. 20006 RE: The country of origin and eligibility under 9802.00.50 of aluminum louvers from Mexico for alteration Dear Mr. Glick: In your letter dated July 30 you requested, you requested a ruling on behalf of your client, Construction Specialties, on the country of origin and eligibility under subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS), on certain louvers (fixed and movable), sunshades and modular grilles. The products to be imported are louvers (fixed and movable) sunshades and modular grilles for commercial buildings.  You indicate that aluminum profiles (e.g., heads, shapes, jambs) of Mexican origin are imported into the United States where they undergo complex manufacturing operations and assembly creating finished louvers, sunshades and grilles. Some of the finished products with the exception of the operating louvers are sent to Mexico where they are painted and then returned to the U.S. You inquire as to the country of origin of the finished products upon completion in the U.S.  Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means 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 Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908). Based on the information provided, the aluminum profiles are shipped from Mexico to the U.S. where they are manufactured and assembled into finished products.  As such, we find that a substantial transformation has taken place resulting in a new and different article and the country of origin is the United States. You also ask whether the finished products that are sent to Mexico for painting are eligible for a partial duty exemption under subheading 9802.00.50, HTSUS, which provides for "Articles returned to the United States after having been exported to be advanced in value or improved in condition by any process of manufacture or other means: Articles exported for repairs or Alterations: Other."  The fixed louvers, sunshades and grilles are complete articles for their intended purpose upon exportation to Mexico and painting does not transform these products in name, use or performance.  Therefore, it is the opinion of this office that painting is a repair or alteration and these products are eligible for duty free treatment under subheading 9802.0050, HTSUS. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Mary Ellen Laker at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division