OT:RR:NC:N2:206
Doris Di
Trade Pacific PLLC
700 Pennsylvania Avenue, SE, Suite 500 Washington, DC 20003
RE: The country of origin of a double flange wheel hub unit with tapered roller bearings
Dear Ms. Di:
In your letter dated April 2, 2024, you requested a country of origin ruling on double flanged wheel hub unit on behalf of your client,
The article under consideration is a Double Flanged Wheel Hub Unit Incorporating Tapered Roller Bearings, Item Number 515096, which is used in passenger vehicles. Featuring inner and outer flanges, the double flanged wheel hub unit securely houses tapered roller bearings to ensure smooth rotation and efficient weight distribution of the wheel hub unit. The rotating body of the gear ring is fixed to the flange. The flange end face is provided with holes with bolts, which can be directly connected to the suspension or brake device. The inner hole of the flange is equipped with a spline slot, allowing compatibility with the constant speed drive shaft. The Anti-lock Braking System (ABS) sensor is integrated into the hub, with the magnetic steel suit of the ABS sensor mounted on the gear ring rotary body and matched with it.
You state that the outer and inner flanges with raceways are manufactured by Sling in its Thailand factory. Additionally, the grease, anti-rust oil, and packing materials used in the assembly are locally sourced by Sling in Thailand. The cage, tapered roller, seal ring, dust cover, ring gear, bolt, ABS sensor, and inner ring are of Chinese origin and imported to Thailand for further processing.
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."
You state that Sling manufactures the inner and outer flanges at its factory in Thailand. The imported Chinese components are assembled together with the inner and outer flanges in Thailand by means of pressing, installing, and otherwise assembling. The Chinese components do not substantially transform in Thailand. As a result, we must determine the character of the wheel hub unit. In NY Ruling N336938, dated December 27, 2023, we stated that a wheel hub unit enables the wheels to be installed on to the axle and provide anti-friction. Therefore, we determined that the character of the wheel hub unit is the combination of the flanges and the inner race. In the instant case, the flanges are of Thai origin, while the race is of Chinese origin. Due to the fact that the final assembly occurs in Thailand, and the value of the Thai components amounts to approximately 66 percent of the total cost, it is the opinion of this office that the country of origin for the double flanged wheel hub unit incorporating tapered roller bearings 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