CLA-2:OT:RR:NC:N2:206
CLASSIFICATION: 9026.10.2080; 8708.99.8180; 9903.88.01
Erin Tzong
Qian Jun Technology Ltd.
10F.-5, No. 5, Taiyuan 1st Street
Zhubei City, Hsinchu County, 30288
Taiwan
RE: The tariff classification, marking and country of origin of automotive sensors and a fuel tank.
Dear Ms. Tzong:
In your letter, dated July 25, 2019, you requested a tariff classification, country of origin and marking determination ruling. Descriptive literature and illustrations were provided with your request.
The items under consideration are an Adblue Level Sensor, a Fuel Level Sensor and an Adblue Tank Assembly. You describe each item as follows:
The Adblue Level Sensor is a device used to read the level and temperature of Adblue liquid held in the tank. The sensor is electronically connected to a gauge for easy reading. The device consists of a Printed Circuit Board Assembly (PCBA), quality sensor, filter, and metal tube of various shapes, depending on the customers’ design.
The Fuel Level Sensor is a device used to read the level of fuel remaining in the gas tank. The fuel sensor is electronically connected to a gauge for easy reading of the fuel levels. The fuel level sensor is made of a PCBA and metal tube of different shapes.
The Adblue Tank Assembly is composed of an Adblue level sensor and a plastic tank. The tank stores Adblue, and the Adblue level sensor detects the Adblue level. The plastic tank is made of High Density Polyethylene (HDPE), black master batch, and toothed ring insert of plastic and metal combined parts. Once the tank and sensor are combined, a tank cap, nut insert, fill neck adapter, fill neck extension, fill neck, and a fill neck filter are added.
The applicable subheading for the Adblue Level Sensor and Fuel Level Sensor will be 9026.10.2080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), excluding instruments and apparatus of heading 9014, 9015, 9028, or 9032; parts and accessories thereof: For measuring or checking the flow or level of liquids: Electrical: Other.” The general rate of duty will be Free.
The applicable subheading for the Adblue Tank Assembly will be 8708.99.8180, HTSUS, which provides for “Parts and accessories of the motor vehicles of heading 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other”. The general rate of duty will be 2.5% ad valorem.
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 World Wide Web at https://hts.usitc.gov/current.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines "country of origin" as the country of manufacture, production or growth of any article of foreign origin entering the U.S. 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.
The courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). 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). 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).
Based on the information you provided on the Adblue Level Sensor and Fuel Level Sensor, all components were produced in China. In Taiwan, the components were simply assembled into functional sensors. As a result, it is the opinion of this office that both sensors have not been substantially transformed in Taiwan. Therefore, the Adblue level sensor and fuel level sensor are considered products of China for duty and marking purposes at the time of importation into the United States.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 9026.10.2080, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. If the merchandise is from China, you must report the Chapter 99 subheading, i.e., 9903.88.01 in addition to the corresponding subheading 9026.10.2080, HTSUS, listed above at the time of importation.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
With regards to the Adblue Tank Assembly, you state that Qian Jun Technology Ltd. buys the HDPE tank from a Singapore supplier, the black master batch from a Taiwanese supplier, and the toothed ring insert, tank cap, fill neck, fill neck with magnet from a supplier from China. In Taiwan, the tank is formed (blown) by a use of a blow molding machine from raw materials, such as HDPE and black master batch. After the tank is formed, the rest of the parts are assembled together and testing is performed in Taiwan.
In HQ 735368 (June 30, 1994), we noted that the bicycle frame was the most costly component and one of the essential components of the bicycle (if not the most essential component) imparting to the bicycle its overall shape, size and character. In that case, the tubing for the bicycle frame was made in Taiwan, and the tubes were welded together to make the frames in Taiwan. In addition, all the other components of the bicycles were assembled together in Taiwan to make the finished bicycle. Because the bicycle was assembled in Taiwan and one of the bicycle's most significant components, the frame, was made in Taiwan, we found that the country of origin of the bicycle was Taiwan. Although the other components came from several different countries, when they were assembled together in Taiwan they each lost their separate identity and became an integral part of a new article of commerce, a bicycle. Accordingly, it was determined that the bicycle must be marked to indicate that its country of origin was Taiwan.
This office finds that the essence of the Adblue Tank Assembly is the tank itself. Since the tank was formed from raw materials in Taiwan, it is our opinion that the tank was substantially transformed in Taiwan. Consequently, the Adblue Tank Assembly is a product of Taiwan for duty and marking purposes.
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, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division