MAR-2:OT:RR:NC:N2:206
Brian Jang
Skybridge US, Inc.
5935 Buford Highway, Suite 301
Norcross, GA 30041
RE: The country of origin of automotive control arms.
Dear Mr. Jang:
This is in response to your letter dated January 27, 2020, requesting a ruling on the country of origin for automotive control arms on behalf of Neoctr Co., Ltd.
The items under consideration are Automotive Control Arms (Model Numbers CQMZ-1R, CQMZ-5L, CQT-20R, and CQHO-19L). You state that the primary function of the control arm assemblies is to attach the wheels to the frame of the vehicle and add a level of stability to the wheels. They enables automobile wheels to align correctly and make it possible for wheels to move up and down. The control arms are comprised of a control body, which originates from China and a ball joint that originates from Korea.
You claim that the ball joint is the most essential part in the control arm assembly that connects the knuckle and arm. It plays an important role for lubrication and suspension that makes it easier to support and steer automobile wheels.
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 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) (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".
The assembly process in Korea appears to be a minor one and did not result in a substantial transformation of the control body and the ball joint. Therefore, we need to determine the “essence” of the control arm assemblies.
This office has researched control arms and agrees with your determination. Although a control arm connects the wheel hub and steering knuckle to the frame of the vehicle, it is the ball joint on the wheel side of the vehicle that allows flex and controlled movement according to road conditions and steering input from the driver (See https://www.bluestar.com/get_informed/article/the-purpose-of-control-arms-bushings-ball-joints/).
Therefore, the Automotive Control Arms (Model Numbers CQMZ-1R, CQMZ-5L, CQT-20R, and CQHO-19L) are considered products of Korea for both origin and marking purposes at the time of importation into the United States.
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