OT:RR:NC:N2:206
Jaemoon Yoo
W Customs
209 Hakdongro, Gangmamgu, Seoul 06052 South Korea
RE: The country of origin of control arms for passenger vehicles
Dear Mr. Yoo:
In your letter dated April 5, 2024, you requested a country of origin ruling of Control Arms, which you filed on behalf of your client, CTR Co., Ltd.
The articles under consideration have been identified as Control Arms, Part Numbers CQ0296X, CQ0478Y, CQ0355Y, and CQ0053R, which are used in passenger vehicles. You state that the control arms are responsible for facilitating the vertical movement of the wheels, effectively absorbing shocks and vibrations caused by uneven road surfaces. Their primary function is to ensure that the tires maintain constant contact with the road, providing traction, stability, and control. The control arms absorb the impact caused by irregularities on the road, acting as a barrier between the road imperfections and the passengers inside the vehicle. Their role is to absorb these impacts and provide a smoother and more comfortable ride. They play a crucial role in determining suspension geometry for precise steering, handling, and minimizing tire wear, and also assist with managing the forces exerted during braking and acceleration.
The control arms are comprised of two main components: the control arm subassembly, which is produced in China and the ball joint, which is made in Vietnam. Both components are then imported to South Korea for final assembly with a Korean made protection cover, and packaged for sale.
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 (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article.
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).
However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff'd, 702 F.2d 1022 (Fed. Cir. 1983) (Uniroyal). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). In Uniroyal case, the court held that an upper was not substantially transformed when attached to an outsole to form a shoe and that the upper was "the very essence of the completed shoe".
Based on the Manufacturing Process Chart document submitted with your request, the joining of the components in South Korea does not result in substantial transformation of the components. As a result, we must determine the character of the control arms. In ruling N309252, dated February 25, 2020, this office ruled that the character of the control arms are the ball joints. In the instant case, the ball joints are produced in Vietnam. Therefore, the country of origin of the entire control arm assemblies will also be Vietnam.
The holding 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 Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division