CLA-2-85:OT:RR:NC:N2:201
Michael Lee
Powertek Group
607 Monterey Pass Road Monterey Park, CA 91754 United States
RE: The tariff classification, country of origin, and marking of an Ignition Coil
Dear Mr. Lee:
In your letter dated February 17, 2025, you requested a classification, country of origin, and marking ruling on an ignition coil for purposes of applying trade remedies under Section 301, as amended, from China.
In your request, you state that the ignition coil is completely assembled, and all subassemblies are manufactured in Thailand. You presented documents/slides and a video showing the production work done in Thailand.
The item under consideration is described as an Ignition Coil for an automotive engine, sometimes referred to as a spark coil, which is used to provide electrical energy to the spark plugs. This product includes a plastic housing, copper wire, plastic skeleton, iron core, module, and rubber boot.
The ignition coils incorporate an electrical transformer, which is used to produce high-voltage pulses from a low-voltage direct current (DC) supply in an automobile's ignition system which transforms the vehicle’s low voltage to the thousands of volts needed to create the electric spark that ignites the fuel.
Your procedure for producing the ignition coil is the following:
· Secondary winding of copper wires on plastic bobbin, to make secondary coils
· Primary winding (Winding primary wire on primary bobbin, to make primary coils
· Assembly process (Assembly of primary coils, secondary coils and iron core)
· Iron core assembly
· Put coils into housing
· Soldering coils group (Soldering with housing)
· Prepare prior to potting
· Potting epoxy resin
· Epoxy resin drying
· Assembly rubber boot and spring
· Inductance and resistance tests for finished parts
· Output voltage test for finished parts
· Finished parts inspection
· Laser coding
· Package for parts
· Stock finished parts in warehouse and ready for shipment
The applicable subheading for the ignition coils will be 8511.30.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical ignition or starting equipment of a kind used for spark-ignition or compression- ignition internal combustion engines (for example,…ignition coils,…);…of a kind used in conjunction with such engines; parts thereof: Distributors; ignition coils: Ignition coils”. The rate of duty will be 2.5%.
When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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).
Additionally, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” 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 the marking laws and regulations.
With the facts and documentation presented, it is the opinion of this office that the Ignition Coil’s components and subassemblies are substantially transformed during the manufacturing process in Thailand and thus the country of origin of the complete Ignition Coil is Thailand for marking purposes. As the country of origin of the subject item is Thailand, the Section 301 Trade Remedy duties are not applicable to the Ignition Coil under consideration.
Thailand has been determined as the country in which the product was produced, therefore the Ignition Coil may be marked “Made in 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 Matthew Sullivan at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division