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 speed 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 that are both described as speed sensors for use within vehicles and are identified by part numbers 20010031 and 20010104. 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 installed within the transmission system of a vehicle and provide speed information for the wheels and turbines within the system. This is accomplished by the sensors acting as a transducer by creating a magnetic field around the target wheel or turbine. As a target passes through the field, the Hall Effect IC registers this presence and transfers this to an electrical impulse that is sent to the Transmission Control Unit (TCU). The TCU then interprets and processes this signal into a speed for the wheel or turbine. This allows the transmission to effectively shift gears as the vehicle is in motion.
In your request, you state that the manufacturing process is virtually identical for the two models and occurs in Thailand. The Hall Effect IC, which in both cases is manufactured in China, is attached to a Printed Circuit Board (PCB) of Thai origin. Based on the information provided, this process consists of bending and soldering the leads of the IC to the PCB. Further, the PCB does not contain any other active elements and is only used as a connection point. The IC and PCB subassembly are then inserted into the plastic frame and enclosed with a plastic shell, which originates in Thailand. The finished device is then inspected, tested 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 speed sensors, part numbers 20010031 and 20010104, will be China.
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