CLA-2-94:OT:RR:NC:N4:433
Juan C. Moreno
Zisser Customs Law Group PC.
9355 Airway Road
San Diego, CA 92154
RE: The country of origin of an aircraft seat.
Dear Mr. Moreno:
In your letter dated April 30, 2020, you requested a country of origin ruling on behalf of Recaro Aircraft Seating Americas, LLC. In lieu of samples, illustrative literature, a product description, and manufacturing processes were provided.
The item subject of this ruling request is constructed of foreign and domestically sourced raw materials. A description of the item follows.
The “Combined Single Frame Seat,” is an upholstered, metal, single row 3 passenger economy class aircraft seat. The row of seats consist of four primary component groups that includes: the ultra structural parts and components, the structural parts and components, the cosmetic and comfort components, and the parts of general use.
The applicable subheading for the subject merchandise will be 9401.10.8000, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Seats of a kind used for aircraft: Other.” The rate of duty will be free.
Considering the 2000 labor hour resources expended on German product design, engineering, manufacturing and development, when compared to 5.4 labor hours of assembly in China, you request an origin determination of Germany.
You state, “The most important feature of an aircraft seat is the structural frame and its ability to withstand significant inertia forces. The frame represents the most significant portion of the technology. It is the one single area where we find the most advancements, changes and regulatory requirements. It also represents the most important factor for aircraft manufacturers as it must achieve both the lowest possible weight and passenger safety.”
You cite Federal Aviation Administration (FAA) 14 Code of Federal Regulations (CFR) Section 25.561 in that a “seat must be designed to give each occupant every reasonable chance of escaping serious injury in a minor crash landing, and that the occupant may experience the following ultimate inertia forces: Upward 3.0g, Forward 9.0g, Sideward 4.0g, Downward 6.0g, and Rearward 1.5g. The structural analysis and testing of seats, berths, and their supporting structures are determined by factoring prescribed flight, ground, emergency landing conditions, and a combination of the ultimate inertia forces.” The subject aircraft seat components follows.
The “ultra-structural aircraft parts category” consists of 17 components identified as “parts that provides the most structural support, primarily responsible for the strength and integrity of the seats, represent the largest surface area, the most value, and involve the most technology, research and development as well as representing a level of permanency.” A few of these components include: the cross strut, seat divider assembly, seat leg front, seat leg rear, structure armrest, structure backrest, and table arm assembly. Of the 17 components, 13 (36.71%) are domestically sourced in Germany.
The “minor-structural aircraft seat components” consists of 26 components identified as “those parts that are generic, simple in nature, and are needed to meet durability, strength, and longevity criteria.” A few of these components include: the baggage sidebar, steward step assembly, headrest assembly, diaphragm backrest, and seat belt. Of the 26 components, 13 (16.98%) are domestically sourced in Germany.
The “cosmetic and comfort parts and components” consists of 25 components identified as “those parts that deal with the physical or visual appearance of the product or deliver passenger comfort.” A few of these components include: the dress cover backrest, bridge assembly, armcap, bumper panel, literature pocket, and coat hook. Of the 25 parts and components, 14 (11.31%) are domestically sourced in Germany.
The “parts of general use” consist of 123 components identified as “shelf type parts such as screws, nuts, washers, brackets, plugs.” A few of these components include: bolts, spacers, clamps, and cables. Of the 123 parts, 39 (3.14%) are domestically sourced in Germany.
Of the 191 discrete material component parts 79 (68.14%) are of German origin. Additional components having a pre-determined end use and of Austria, Slovakia, Poland, and United States foreign origin are shipped and exported to China. In China, the foreign components are assembled with additional Chinese domestic components to make a complete single row 3 passenger seat.
COUNTRY OF ORIGIN
Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)) defines “country of origin” 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.” A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use. No one factor is decisive.
Per your submission, aircraft seat components are sourced from Germany, Austria, Slovakia, Poland, and the United States. The components are shipped and exported to China. In China, additional domestic raw material components are locally sourced. In China, assembly of a single row 3 passenger seat involves the use of screwdrivers, jigs, and wrenches. Workers assemble and torque to German design specification the seat as follows: 1.) the seat base assembly; 2.) the seat backrest assembly; 3.) the seat divider assembly; 4.) the armrest assembly; 5.) the rear cover assembly; 6.) the electronic component assembly; 7.) install grounding harnesses and USB cables; 8.) combine the seat base and backrest assemblies; 9.) install the table arm and backrest; 10.) assemble the foam seat base, seat backrest, and headrest; 11.) inspection, packaging, and exportation.
A predominant number of the German origin components are engineered, cast, and manufactured to shape according to FAA regulations prior to importation into China. The post-importation processing consisting primarily of assembly operations do not change the basic nature of the article; it represents different stages of the same product. The foreign components are clearly dedicated for use in making a single row 3 passenger aircraft seat and cannot be used for any other purpose. In the instant case, the German origin components comprise the indispensable attribute that strongly marks or serves to distinguish the structure, core or condition of the assembled article. In view of these facts, the country of origin of the single row 3 passenger aircraft seat is Germany.
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).
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 19 C.F.R. § 177.9(b)(1). In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and you should resubmit for a new ruling in accordance with 19 C.F.R. § 177.2.
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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division