The country of origin of a rough terrain scissor lift.

N325011 April 12, 2022 OT:RR:NC:N1:103 CATEGORY: Country of Origin Lydia Pardini AMS Trade LLP 1133 Connecticut Avenue NW Washington, DC 20036 RE: The country of origin of a rough terrain scissor lift. Dear Ms. Pardini: In your letter dated March 24, 2022, you requested a country of origin ruling determination on a rough terrain scissor lift on behalf of your client, Sinoboom Poland Sp. z o.o. The merchandise under consideration is a rough terrain scissor lift, designed for use on uneven outdoor surface conditions. Each scissor lift is equipped with four-wheel drive, outriggers for increased stability, large tires for higher ground clearance, and a diesel engine that provides the power to move uphill and over uneven conditions. Compared to a regular scissor lift, a rough terrain scissor lift generally has a larger platform, a higher working height, higher loading capacity, and higher gradeability. Included in your request are several models that all serve the same function but differ in specifications, such as working height and gradeability. You state the sourcing and production process for each model is the same. Each rough terrain scissor lift is manufactured using 22 subassemblies and components sourced from Poland, China, France, Denmark, Germany, Italy, Vietnam, the Netherlands, and the Czech Republic. Four major structural subassemblies: the arm, platform, chassis (inclusive of the outriggers), and assembly pin are sourced from Poland. The control module is sourced from Germany and the engine is sourced from the Netherlands. The driving system components, consisting of a gear box and motor, are sourced from Denmark. The components for the hydraulic system are sourced from Poland, Italy, Germany, and the Czech Republic. The electrical system consists of a sensor from Italy, a switch from France, a harness from Poland, and a battery from Vietnam. Various fastening pieces and plastic components are sourced from China. All of the subassemblies and components are sent to Sinoboom’s facility in Poland for final assembly. The production process begins with manufacturing the metal components that will form the structural subassemblies. From steel materials, the metal components for the arm subassembly are produced using a machining process that involves sawing tube, punching holes, lathing, laser cutting, pressing, drilling, and boring. Separately, the machining process to produce the metal components for the chassis subassembly and platform subassembly include laser cutting, sawing, drilling, burring, pressing, tapping, and bending. Next, the machined steel components are joined to form the arm, chassis, and platform subassemblies. These steps are described as laser cutting, deburring, bending, drilling, fitting, tack welding, and finish welding. After welding, the subassemblies go through a coating process to ensure smooth functioning and to prevent rust, corrosion, and other damage. This involves shot blasting, primer coating, top coating, curing, and touch up. The arm subassembly undergoes a pre-assembly process that involves aligning the arm components, inserting shafts, and fastening the components using bolts. A lower lift cylinder is also incorporated into the arm subassembly and fastened using stop pins and bolts. The pre-assembly process for the platform subassembly involves installing and bolting guardrails to the extended platform assembly and fixed platform assembly. Various hinge assemblies, sleeves, support brackets, and an aluminum plate are also installed. The final assembly process begins with the installation of the front and rear outrigger assemblies to the base frame. This process involves aligning the outriggers to the mounting holes of the base frame and securing the assemblies using stop pins and bolts. Next, the support leg assembly, door box assembly, fuel tank assembly, and hydraulic tank are mounted and bolted into place. This is followed by the installation of the driving system components, which include a reducer, motor, and steering cylinder. A worker proceeds to install various electrical components including sensors, switches, electrical wiring, a control panel assembly, and a battery. The process to install the engine assembly involves hoisting, mounting, and bolting the engine in place before installing fuel filters, connecting hoses, installing the wind shroud, and mounting the intake pipe. Components for the hydraulic system, consisting of various valve assemblies, an oil cooler, and a temperature sensor, are bolted into place using fasteners. Afterward, the arm subassembly is hoisted, aligned, and fastened with stop pins and bolts. Wiring and cable routing is performed before the platform subassembly is hoisted, adjusted, and attached using a stopper pin and self-locking nut. The assembly process is complete after final adjustments, inspections, and functional tests are performed. As stated in HQ 735009, dated July 30, 1993, “The country of origin is the country where the article last underwent a ‘substantial transformation’, that is, processing which results in a change in the article's name, character, or use.” In addition, the court has held that “A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, and use that differs from the original material subjected to the processing.” 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). In Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade 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 that “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. Based upon your description of the manufacturing operations, the nature of the processing performed in Poland is not a simple one. In addition to the final assembly occurring in Poland, all of the major structural subassemblies (i.e., the arm subassembly, chassis with outrigger subassembly, and platform subassembly) are manufactured from steel material and transformed into integral subassemblies in Poland. The complex operations results in the individual parts losing their separate identities to become a new article. Thus, based on the totality of the circumstances, the country of origin of the rough terrain scissor lift will be Poland. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Please note that 19 C.F.R. 177.9(b)(1) provides that "[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based." 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 Paul Huang at paul.huang@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division