The country of origin and marking of an automobile wiring harness

N302825 March 11, 2019 MAR-2 OT:RR:NC:N2:209 CATEGORY: Marking, Country of Origin Fernando Moya Sumitomo Electric Wiring Systems, Inc. 12120 Esther Lama Dr., Suite 120 El Paso, TX 79936 RE: The country of origin and marking of an automobile wiring harness Dear Mr. Moya: This is in response to your letter dated February 5, 2019, requesting a country of origin and marking ruling. This request concerns the country of origin of an electrical wiring harness for an automobile, part number 297A6 5SK0A. The item is produced in both China and Japan. The initial assembly process begins in China. In China, insulated wire of Japanese origin is assembled with other components of various origins. The insulated wire is cut to length and stripped at one end. An electrical terminal is attached to the wire using a crimping device. This process is done to two set of wires. Once it is completed, other components, such as electrical tape, a rubber seal, a plastic cover, a metal bracket, two metal rings, and two metal crowns are incorporated. The subassembly is then sent to Japan for the final assembly process. In Japan, other components of various origins, such as cut to length corrugated plastic tubing, electrical tape, electrical connectors, a plastic bracket, a metal bracket, two plastic clips, and electrical terminals are incorporated. Then the harness is inspected for quality assurance and packaged. 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; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.” 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). 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). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). Based upon the facts presented and the pertinent authorities, it is the opinion of this office that the Japanese origin insulated conductor, which is first used in China to partially assemble a wiring harness and then sent to Japan for the final assembly process, does not undergo a substantial transformation. The assembly process does not result in a new and different article of commerce with a name, character, and use distinct from the article exported. Therefore, the electric wiring harness, part number 297A6 5SK0A is considered a product of Japan at time of import into the United States and should be marked accordingly. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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, contact National Import Specialist Steven Pollichino at steven.pollichino@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division