The country of origin of a loaded strut

N338747 April 4, 2024 OT:RR:NC:2:206 CATEGORY: Origin Dan Bouchey GPN Automotive Company Limited Lot CN15-02, Nam Dinh Vu Industrial Park, Dong Hai 2 Ward, Hai An DistrictHai Phong 180000Vietnam RE:  The country of origin of a loaded strut Dear Mr. Bouchey: In your letter dated March 8, 2024, you requested a country of origin ruling on a loaded strut. The product under review is a loaded strut assembly (XS843115220AZ), which is intended to be sold as an aftermarket good for passenger vehicles. The strut assembly includes a shock absorber, strut mount, coil spring, and additional components.  The main function of the assembly is to generate a damping force through the spring and strut to absorb the corresponding vibration and keep the car body stable. You provided the bill of materials (BOM) with your request indicating that the components of the loaded strut are made in China, Vietnam, and Thailand. The Chinese and Thai components are imported into Vietnam for final assembly with the Vietnamese components. 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). You state that in Vietnam the coil spring is mounted onto the strut, using specialized machinery that compresses the spring to make it easier to install onto the strut. The mount, which serves as a connection point between the strut and the vehicle's chassis, is attached to the strut assembly. The bearing, which allows for smooth rotation of the strut, is also installed at this stage. A dust boot is placed over the top of the strut to protect it from debris and contaminants. Throughout the assembly process, quality control checks are performed to ensure that each component is properly installed and meets the necessary specifications. This may involve visual inspections, measurements, and functional tests. Once all components have been installed and inspected, the loaded strut assembly is finalized. This may involve tightening bolts to the correct torque specifications and applying any necessary coatings or finishes. In New York Ruling (NYR) N307541, dated December 11, 2019, and NYR N309148, dated February 4, 2020, which was later affirmed by Headquarters Ruling (HQ) H310543, dated May 18, 2020, this office discussed a suspension strut of a similar construction as the loaded strut in your request.  In these rulings, we determined that the shock absorber was the character of the entire strut assembly.  In the instant case, while the processing described as occurring in Vietnam does not appear to be complex, the components of the shock absorber from China and Thailand are all imported separately and assembled into the strut in Vietnam with the Vietnamese components.  As a result, the character of the strut cannot be established until it is fully assembled together.  Consequently, it is this office’s  opinion that it is the final assembly of the loaded strut occurring in Vietnam, which determines its character and its country of origin.  Furthermore, the fact that the value of the Vietnamese components and labor is approximately 73 percent of the total cost of the strut, further supports the finding that the country of origin of the loaded strut will be Vietnam for marking purposes. 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 Liana Alvarez at liana.alvarez@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division