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 wheel speed sensors
Dear Ms. Jia:
In your letter dated November 11, 2024, you requested a country of origin ruling.
The two items at issue with this request are described as ABS wheel speed sensors for use in vehicles. The first item, identified as part number 20040003, is comprised of an electromagnetic core within a housing with a connector at one end. You state that the device is attached within the wheel of a vehicle in order to detect the speed of the wheel. This function is achieved by the device creating a magnetic field around the target wheel. As the wheel rotates, the magnetic field is broken and an electrical impulse is sent to the vehicle's Electronic Control Unit (ECU) for interpretation of the wheel's speed and rotation.
The second item, identified as part number 20040353, is comprised of a length of insulated wire with a Hall Effect sensor attached at one end. Like part number 20040003, this item is also attached within the wheel of a vehicle in order to detect the speed of the wheel. The Hall Effect sensor, which is comprised of a Hall Effect integrated circuit (IC), creates a magnetic field around the target wheel. The IC senses when the wheel rotates and passes through the field and sends an electrical signal through the attached cable to the ECU for interpretation.
In your request, you state that the manufacturing process for part number 20040003 is performed entirely in Thailand. The process begins with Thai originating lacquered wire being wrapped around the plastic coil frame, which also incorporates the electrical connection portion of the device. A magnet, also originating from Thailand, is then attached along with an iron core. This assembly is then encased within a metal housing prior to the sensing head being attached. The finished device is then inspected and packaged for shipment to the U.S.
The manufacturing process for part number 20040353 also occurs in Thailand. This process begins with Thai originating insulated wire being cut to length and the ends prepared for the addition of the sensor element. The Hall Effect ICs, also of Thai origin, are then bent and installed within the molded sensor housing. The electrical terminals, which originate from China, are then added to the sensor housing before it is attached to the cable. The finished sensor is then inspected and tested prior to being 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 magnetic elements and IC components impart the character of the devices. These articles perform the primary and essential functions of the finished devices. Further, all components that originate from outside of Thailand are ancillary and, thus, are substantially transformed by the processes performed. Based upon the facts presented, the country of origin of the ABS wheel speed sensors, part numbers 20040003 and 20040353, 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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division