The country of origin of an automotive trailer wire harness

N320147 July 15, 2021 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin George R. Tuttle, III Tuttle Law 3950 Civic Center Drive, Ste 310 San Rafael, CA 94901 RE: The country of origin of an automotive trailer wire harness Dear Mr. Tuttle: In your letter dated June 23, 2021, you requested a country of origin ruling on behalf of your client, Carryingmate Industries USA. The merchandise under consideration, identified by part number 00-01-204, is described as an automotive trailer wire harness. The wire harness consists of a 40-foot length of various insulated conductors bundled together and affixed with five molded pin connectors at each termination point. The subject wire harness is used within the tractor trailer to send electrical signals for brake lights, turn signals and side markers of the trailer. You state that the manufacturing process will be fully completed in Vietnam with materials sourced from China and United States. This process begins with Chinese origin insulated and jacketed wires cut to the desired length and the insulation peeled back for the introduction of the connectors. Terminal pins are then added to ends of the wire around which the connector is molded, via an injection process. A second injection molded cover is then added over the connections to ensure watertight integrity. The completed wire harness will be tested and inspected before being packaged for shipment to the United States. 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). Further, in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade (“CIT”) interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer, the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight, and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted, “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an example, National Hand Tool Corp. v. United States, 16 C.I.T. 308, 310, aff’d 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article. Regarding the country of origin of the subject cables, it is our opinion that the Chinese originating conductor imparts the essential functional component of the finished article. The manufacturing process that takes place in Vietnam does not substantially transform the insulated and jacketed wires into a new and different article of commerce with a name, character, and use distinct from the individual components. Based upon the facts presented, it is the opinion of this office that the origin of the automotive trailer wire harness, part number 00-01-204, is China. 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, contact National Import Specialist Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division