OT:RR:NC:N2:206
Matthew Fields
Autolin Inc.
16650 NE 79th St Redmond, WA 98052
RE: The country of origin of a double flanged wheel hub assembly.
Dear Mr. Fields:
In your letter dated December 6, 2023, you requested a country of origin ruling on the Double Flanged Wheel Hub Assembly Incorporating Ball Bearings With Splining, ABS Components, which you filed on behalf of your client, New Torch Technology (Thailand).
The article under review is the Double Flanged Wheel Hub Assembly Incorporating Ball Bearings With Splining, ABS Components (wheel hub assembly or unit), which is used in passenger vehicles. Its sub-assemblies include flanges, a gear ring rotary body, a sealing assembly, and a hub. The ABS sensor is equipped on the hub, and the magnetic steel suit of the ABS sensor is mounted on the gear ring rotary body and matched with it. The rotating body of the gear ring is fixed to the flange. The flange end face is provided with a hole with a bolt, which can be directly connected to the suspension, brake device, and hub. The flange inner hole is provided with the spline slot, which can be used with the constant speed drive shaft.
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, dated January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). In the 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."
According to the flowcharts submitted with your request, the inner and outer flanges originate from Thailand, while the inner ring, ball bearing, seal ring, cage, gear ring, ABS speed sensor, combined sealing ring, grease, and packaging are of Chinese origin and imported to Thailand for further processing.
In Thailand, the Thai components and the Chinese inner ring undergo turning, grinding, and heat treatment. The rest of the Chinese components are assembled together with the inner and outer flanges and the inner ring without further processing. The assembly process appears to be a simple one. As a result, we must determine the character of the wheel hub assembly. Generally, the main function of the wheel hub assembly is to mount the wheel onto the axle and provide anti-friction. As such, this office finds that the character of the unit is the combination of the flanges and the inner race. It is our opinion that the Chinese inner ring is substantially transformed in Thailand based on the processes performed in Thailand. Consequently, all components of the character of the wheel hub assembly are of Thai origin. As a result, the country of origin for the entire wheel hub assembly will be Thailand.
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