That fuel filter type depicted doesn't care what orientation it's in. The fuel system it is installed in might, though. Does the installation trap air and interfere with gravity fuel flow? When the air bubble it contains, achieves equal back pressure to the head pressure from the tank, the filter stays clean since it stops filtering fuel. This is good for the filter.

See, when you start changing systems on a bike, you become the engineer and are liable to foresee repercussions of the alteration (or live with the consequences). It's not just the part selection, it is how it is used, as well. Can you do this as well as Honda?
Some can. Some can't. I just don't see the need, in this regard. I suppose I'm the minority here.

Anyway, I don't believe you can install that depicted filter on a CB550 without a line loop and keep it from collecting air. Let's see a pic of the installation, not just the filter.
By the way. Unless, I can't repair the Honda fuel filters for some reason, I remove all inline filters from bikes I acquire. If they came with spare tires attached, or twenty extra mirrors appended, I'd remove them, too. The stock filters have all worked as designed since I started collecting them in 1975. Why would my bikes be any more "special" than anyone else's? I know there were a couple times when I was quite low on fuel, that I was very happy to be able to use all the fuel in the tank. Once, I had less than a quart left in the big 550F tank driving into the gas station. Had to keep the fuel sloshing over the center hump in the tank while driving. An air bubble in the line would have left me walking, I expect.
As an aside, I have to ask. How can you be satisfied filtering your oil with only one filter? Or, the incoming air only once?

mercy, TwoTired.
I must admit that I fall into the category of having piece of mind by having the inline filters, but it seems to have struck a nerve with you.
Nah, do what you want. It's just with a logical understanding of the situation, extra inline filters just seem a silly addition. I'm just sharing what I know.
But, perhaps you'd be interested in carburetor turbines to improve fuel economy? Or, water injectors to save on fuel costs?

Cheers,
