The country of origin of the Haliade-X Nacelle

N333849 November 6, 2023 OT:RR:NC:N2:220 CATEGORY: Origin Thierry Dantec GE Wind France SAS 11 Rue Arthur III Nantes 44200 France RE:      The country of origin of the Haliade-X Nacelle Dear Mr. Dantec: In your letter dated July 6, 2023, you requested a country of origin ruling. The merchandise under consideration is identified as the Haliade-X Nacelle (Nacelle), which is described as a 12 MW wind turbine consisting of the three-story nacelle framed body and hub.  You state that the Nacelle will be assembled in France from components and machines of various origins into a wind turbine, where at the time of importation into the United States, it is a complete and functional generator except without the blades and tower.  Once imported and shipped to designated client sites for installation, it will be paired with blades and mounted atop a tower for renewable energy generation. Based on the information provided, the Nacelle is made up of four main sections, referred to as the Hub, the Generator Assembly, the Central Frame, and the Rear Frame.  Each section is assembled as described below at your facility in France under individual manufacturing processes, which you refer to as manufacturing blocks, and then the sections are combined until the Nacelle is completed and ready for testing. The first block is dedicated to finishing work performed on the Central Frame, which you state is imported into France from China.  Upon importation into France, the Central Frame consists of a steel enclosure, inner platforms, yaw components (motor, gearbox, and crown), electrical cabinets, and hydraulic brake and lubrication systems.  In France, the front frame access platform is mounted, and yaw encoders and final cabling is incorporated, and the Central Frame is bolted to the tower interface.  Block one undergoes visual inspection, as well as mechanical (pumps, gears, yaw) and electrical tests. The second block is dedicated to the assembly of the Hub, which you state is imported into France from China.  Upon importation into France, the Hub consists of pitch modules, gearboxes, motors, pumps, platforms and ladders, and encoders. The third block is dedicated to the assembly of the Rear Frame, which you state is manufactured at your facility in France.  The Rear Frame consists of numerous electrical cabinets and electrical machinery of various origins, such as the high-voltage power transformer, surge arrestors, power converters, and electrical controllers.  The Rear Frame also consists of numerous mechanical components that are assembled into the enclosure at your facility in France, such as the roof module, piping, duct work, ladders, ventilation, heat exchangers, and fire safety systems. The fourth block is dedicated to the assembly of the Generator Assembly.  You state that the main bearing, the shaft, and drivetrain subassemblies are manufactured in China and imported into France.  In France, the rotor and stator subassemblies are assembled and incorporated into the drivetrain, the laminations prepared, and numerous magnet modules are inserted.  The stator is bolted onto the front frame, joined with the rotor, and the Generator Assembly is tested. The fifth block is dedicated to the unification of the Central and Rear Frames.  In France, a complex process of joining the Central Frame to the Rear Frame is performed, which involves installing the transformer subassembly as well as the numerous auxiliary systems, such as the platforms, electrical interfaces, generator cooling systems, electrical cabling, and more.  The sixth block is dedicated to the unification of the Hub and the completed Generator Assembly.  In France, the Hub-Rotor/Shaft are bolted together, deflector covers are joined with the rotor, sliprings are installed and the Hub+Generator subassembly is inspected. The seventh block is dedicated to the unification of blocks five and six.  In France, the physical joining of the central and front frames occurs and consists of the alignment and permanent fixing of the two blocks, and the installation of dynamic joint covers, platforms, electrical cabling, and covers/roof.  At this block, various auxiliary systems are installed, such as communications, lighting, ducting, etc.  At the conclusion of block seven, final testing performed on the Nacelle, to include electrical, mechanical, and quality checks. The production team then prepares the Nacelle for software installation that results in what you refer to as a mechanically operational Haliade-X wind turbine machine head. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. 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 test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing.  See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982).  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). Regarding the origin of the subject Nacelle, based on the facts presented, it is the decision of this office that the manufacturing and assembly operations, in sum, substantially transform the individual components in France into a new article of commerce with a different name, character, and use.  In our view, the immense and complex manufacturing operation(s) described in your submission take numerous electrical, mechanical, and structural machines and/or subassemblies, of various origins, and transforms them into a single, complex and multi-faceted machine identified herein as the Nacelle.  Furthermore, while there is a significant amount of input of Chinese content used in the production of the Nacelle, it is the opinion of this office that the manufacturing and assembly processes performed in France, taken collectively, result in a substantial transformation of the non-French components and the Nacelle is considered a product of France.  As a result, the Nacelle will not be subject to the additional duties under Section 301 of the Trade Act of 1974, as amended, upon importation. 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 Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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 Karl Moosbrugger at karl.moosbrugger@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division