The Country of Origin of Skateboards assembled in China

N307991 December 23, 2019 OT: RR: NC: N4:424 CATEGORY: Country of Origin Mr. George Tuttle Tuttle Law 1100 Larkspur Landing Circle Larkspur, CA 94939 RE: The Country of Origin of Skateboards assembled in China Dear Mr. Tuttle: This is in response to your letter dated November 28, 2019, requesting a country of origin determination on behalf of your client, Absolute Board Co. (ABC), of Oceanside, California. A description of the manufacturing processes was submitted for our review. The merchandise under consideration concerns two models of skateboards imported by ABC which are identified as the “Z-Flex” and “Penny” skateboards. The “Z-Flex” model features a birch wood veneer deck and the “Penny” skateboard model has a deck composed of polypropylene plastic. According to the information that you have provided in your letter, the skateboard components originate in various countries, primarily China and Taiwan. You state that the production of the “Z-Flex” wood-based skateboard deck takes place in Taiwan using birch wood veneers imported to Taiwan (in log or ready- to- use veneer form) that are sourced from China or Russia. The production process for the “Z-Flex” skateboard model includes the lamination and molding of the birch veneers. At the lamination step, a water-based adhesive is applied to each of the seven veneer plies, with the grain oriented crosswise for plies 3 and 5 to maximize strength. The glued veneer plies are then placed into a two-mold hydraulic press which forms the nose, concave section, and tail of each skateboard. After drying, eight holes are drilled into the skateboard deck using a drilling rig, and the skateboard deck is further shaped using a band saw, router, and sander. Once shaping is complete, the deck is coated with paint or varnish and allowed to air dry. Lastly, screen-printing is applied to each deck. According to your request, the production of the “Penny” polypropylene skateboard also takes place in Taiwan. You state the polypropylene raw materials will be imported from South Korea. The production process in Taiwan includes mixing the resin together with a pigment to form the polymer, which is then heated and injected into an injection mold made of steel. The polypropylene deck material is partially cooled, allowing the deck to be bent into the desired shape. To complete the solidifying step, the deck is immersed in water. Unlike the “Z-Flex”, it is not necessary to drill holes, as the holes are manufactured into the injection mold. It is further noted that the manufacture of the skateboard trucks for the “Z-Flex” and “Penny” skateboards takes place in Taiwan. The hangers (axles) and baseplates for the trucks that connect the wheels to the skateboard deck will be made/cast in Taiwan. The production process includes casting aluminum ingots sourced from Taiwan and Dubai into steel molds to form the hangers (axles) and baseplates for the trucks that connect the wheels to the skateboard deck. Once the cast truck parts are cooled and separated from the castings, each part is ground, polished, and the holes drilled where needed. You state the actual assembly of the skateboard trucks take place in China using Chinese made components, such as top and bottom bushings, washers, pivot cups, nuts and kingpins. You state that the skateboard wheels for both the “Z-Flex” and the “Penny” skateboard models are manufactured in China. The wheels are composed of two polyurethane components, isocyanate and resin, sourced from Taiwan or Japan. The materials are mixed with the appropriate pigment in metering machines. The polyurethane is then poured into the wheel molds and allowed to cure. Once cooled, the wheel surfaces are shaped by lathe. The wheels are then fitted with bearings, bearing shields, rubber seals and retainer clips, which are sourced from China. The manufacturing steps and assembly operations for the components of the “Z-Flex” and the “Penny” skateboards are very similar. The processing steps consist of the following: 1) the manufacture of skateboard decks, made from either wood or plastic, 2) the casting of the skateboard truck components, 3) manufacture of the wheels, and 4) assembly of the truck components and skateboard wheel assembly. The final assembly of the skateboard decks with the finished wheel assemblies and skateboard trucks will be performed in China. The assembly process includes mounting the completed wheel assemblies onto the hangers. The baseplate of the truck assembly is then attached to the deck with eight mounting bolts which are inserted through the skateboard deck and trucks, and secured in place with locknuts to complete the assembly. For Z-Flex decks, grip tape is added to the deck top, then flattened to remove air bubbles, trimmed at its edge, and then punctured with an awl at the location of the 8 holes underneath. With regard to your request for the appropriate country of origin of the aforementioned skateboards, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means 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.” A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use. A “complex or meaningful” assembly operation may result in a substantial transformation while a “minimal, simple, assembly-type operation” ordinarily will not. The term “simple assembly” is defined in 19 CFR 102.1(o) as “the fitting together of five or fewer parts all of which are foreign (excluding fasteners such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or by other means without more than minor processing.” In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character and use has been produced. No one factor is decisive, and assembly operations that are minimal will generally not result in a substantial transformation. In this instance, it is this office’s opinion that the manufacturing operations of the skateboard components, specifically the skateboard decks and skateboard trucks, in Taiwan that provide the essence of these articles. These items are not substantially changed by either the addition of the Chinese components, or the minor assembly operations performed in China. Therefore, based on the facts presented in this case, the country of origin of the “Z-Flex” and the “Penny” skateboards is Taiwan. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177). 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 19 CFR 177.9(b)(1). In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and you should resubmit for a new ruling in accordance with 19 CFR 177.2. 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 Roseanne Murphy at roseanne.j.murphy@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division