The country of origin of a suspension system.

N319472 June 2, 2021 MAR-2:OT:RR:NC:N2:206 CATEGORY: Country of Origin John Chua Gold Suspension System Malaysia Sdn. Bhd. PT 75112, No 1, Jalan Dato'Husin/KU14 Klang, Malaysia RE: The country of origin of a suspension system. Dear Mr. Chua: This is in response to your letter dated May 15, 2021, requesting a ruling on the country of origin for an automotive suspension system. The items under consideration are vehicle Suspension Systems (Item Numbers SQ10821, SQ11042, SQ11060, SQ11100, and SQ14302. Each system consists of an elastic component (suspension spring and airbag), a damping component (shock absorber), steering gears (bearings), and joints and linkage (elastic rubber plate). The elastic components reduce the bumping, the shock absorber reduces the vibration and dampen the motion of the springs, while the steering gears convert the energy of vibration to heat. As most parts of any suspension must be movable and flexible, the linkages are connected by flexible connection, including the bushing and bearing. These impact the system to adapt to the damping and vibration. These Suspension Systems were previously reviewed by CBP in NY Rulings N309148, dated February 4, 2020, and N317156, dated February 11, 2021. For the instant case, you state that you have made changes to the source of purchase and production flow chart of the suspension struts. The entire shock absorber is now sourced and manufactured in Malaysia, unlike the articles in rulings N309148 and N317156. Other components of the strut are either sourced from China or Malaysia, and the suspension system is assembled in Malaysia. 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. 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) (Uniroyal). 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). In Uniroyal case, the court held that an upper was not substantially transformed when attached to an outsole to form a shoe and that the upper was "the very essence of the completed shoe". The assembly process in Malaysia appears to be a minor one and did not result in a substantial transformation of the components. Therefore, we need to determine the “essence” of the suspension system. In the above-mentioned ruling N309148, which was later affirmed by Headquarters Ruling (HQ) H310543, dated May 18, 2020, we determined that the shock absorber was the very essence of the entire strut assembly. In the instant case, the shock absorber is sourced from and assembled in Malaysia. Therefore, the country of origin of the entire suspension system will be Malaysia for marking and tariff purposes. This ruling is being issued under the provisions of Part 177 of the Customs 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 Liana Alvarez at liana.alvarez@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division