CLA-2-85:OT:RR:NC:N2:212
Sophia Jia
Aborn Automotive Sensor (Thailand) CO., LTD.
Land Plots No. G.39A+G.39B in WHA Eastern Seaboard Industrial Estate 2 A.Ban Bueng Thailand
RE: The country of origin of position sensors
Dear Ms. Jia:
In your letter dated November 11, 2024, you requested a country of origin ruling.
There are two items at issue with this request, which are each described as crankshaft/camshaft position sensors and identified by part numbers 20030574 and 20030561. These devices are comprised of a Hall Effect sensor integrated circuit (IC) within a plastic housing with a connection point at one end. You state that the devices are used within the engine compartment of a vehicle and provide position and speed of the camshaft and crankshaft of the vehicle. This information is gathered by the Electronic Control Unit (ECU) of the vehicle for interpretation. The devices function as a transducer by creating a magnetic field that, when broken by the presence of a metal object (i.e. the engine part), creates and electrical signal that is then sent to the ECU.
In your request, you state that the manufacturing and assembly process is virtually identical for both items and occurs primarily in Thailand. The primary difference in the two items is the origin of the Hall Effect IC. For part number 20030574 this is manufactured in Malaysia while, for part number 20030561 it is manufactured in the Philippines. For both parts, this Hall Effect IC is attached to a Printed Circuit Board (PCB), which originates in Thailand. Based on the information provided, this connection process includes bending the contacts and soldering them to the PCB. The PCB does not contain any other active elements and is only used as a connection point. The various plastic parts are then assembled around the sensor and the finished device is inspected and packaged for shipment to the U.S.
The country of origin is defined in 19 CFR 134.1(b), in pertinent part, 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.
For tariff purposes, 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).
Regarding the origin of the subject sensors, it is the opinion of this office that the Hall Effect IC imparts the character of the finished device. This IC provides the essential functions of the device. Further, the assembly process performed in Thailand is simple in nature and would not result in a substantial transformation of the individual components into new and different articles of commerce. Based upon the facts presented, the country of origin of the position sensor, part number 20030574, will be Malaysia. The country of origin of the position sensor, part number 20030561, will be the Philippines.
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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division