The country of origin of a brake hose

N331974 May 3, 2023 OT:RR:NC:N2:201 CATEGORY: Country of Origin QingQing Zhuge Kintetsu World Express 145-68 228th Street, Unit 1Springfield Gardens, Queens, NY 11413 RE: The country of origin of a brake hose Dear Mr. Zhuge: In your letter dated April 3, 2023, you requested a country of origin ruling determination on a motorcycle brake line assembly (Front Brake Hose) on behalf of your client, Nichirin TN Inc., located in Lewisburg, Tennessee.   In your request, you state that this Front Brake Hose is used on Harley Davidson motorcycles.  It is assembled in Thailand from materials/components from Thailand, Japan, China, Germany, United States and Poland.  Descriptive literature and pictures were provided with your request. The item under consideration has been identified as Part# 000-S22-1H3 (Motorcycle Front Brake Hose).  The Front Brake Hose has an inner tube made of fluorine resin, SUS wire braiding and thermoplastic urethane outer cover.  The brake hose assembly is comprised of subassemblies L2ASSY and L1ASSY. These assemblies are comprised of: 1) Hoses 2) Pipe Fittings 3) Banjo Fittings 4) Flange Bearings 5) Shrink Tube 6) Grommets 7) Bolts 8) Washers 9) Brackets 10) 3M Tape The finished Front Brake Hose assembly is used to deliver braking force to the brake pads via hydraulic pressure and brake fluid. You state that the Front Brake Hose assembly is composed primarily of bulk roll Japanese origin hose (fluorine resin, SUS wire braiding and thermoplastic urethane outer cover), which is imported into Thailand where it is cut to specific length and then crimped. Additionally, you state that the fittings used are imported into Thailand from China, Germany, United States and Thailand. The finished brake hoses are then packaged for export to the United States. Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)), defines "country of origin" 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 to render such other country the “country of origin”.   To determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis.  The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases.  Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred.  No one factor is determinative. 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 to render such other country the ‘country of origin’ with origin in 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). Regarding the country of origin of the subject Front Brake Hose, the components/materials and the assembly operations performed in Thailand, which consists of the adding of fittings, bolts, grommets, shrink tape, etc. to the Japanese bulk hose transforms the bulk hose into a new commercial article.  The cutting and addition of these fittings substantially changes the bulk hose’s identity.  Therefore, based upon the facts presented, it is the opinion of this office that the assembly process performed in Thailand is complex and meaningful and results in a substantial transformation of the non-Thai origin parts of the brake hose assembly.  Therefore the country of origin of the brake line sub assembly (Front Brake Hose) is Thailand. 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 Matthew Sullivan at matthew.sullivan@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division