The country of origin of roof racks

N340245 June 14, 2024 OT:RR:NC:N2:206 CATEGORY: Origin Changgyu Kim SEIN Customs & Auditing Corp 138, Seoun-ro, Seocho-gu, 2nd Floor, Donga TowerSeoul 06619South Korea RE:  The country of origin of roof racks Dear Mr. Kim: In your letter dated May 21, 2024, you requested a country of origin ruling on Roof Rack Assemblies, which you filed on behalf of your client, Hyundai Motor Company. The subject items are Roof Rack Assemblies, Model Name, RACK ASSY-ROOF LH HIGH GLOSS, Part Number, 87270-S9110, and Model Name, RACK ASSY-ROOF RH HIGH GLOSS, Part number, 87280-S9110. Each assembly consists of an aluminum side rail, to which plastic accessories such as pads, spacers, and caps are assembled. The roof rack assemblies are attached to both sides of the motor vehicle’s roof, and when a carrier is mounted on the roof rack, it can be used to load cargo such as bicycles. You state that all components are sourced from South Korea. 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 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). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, dated January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). In the current case, Almac Co. Ltd (Almac), a company in South Korea, purchases aluminum billets that are manufactured in South Korea. The billets are placed in an extruder to be drawn into long profile shapes, then cut to specification. The cut products are then bent, under pressure, into curved shapes to fit vehicle specifications. Machining holes are drilled for attaching components. The aluminum product is heated to high temperatures, and then cooled to control the hardness of the aluminum product. Next, they are exported to China, where the surfaces are polished using a pad with a polishing compound to remove minor scratches and imperfections (buffing process). Also, the aluminum products are submerged in an electrolyte solution, with electrical current passing through it, to form a high-gloss protective layer on the metal surface (anodizing process). The aluminum products are then re-exported to Almac in South Korea, where they are dipped in ceramic liquid and subjected to high temperature drying for a coating that enhances durability and appearance. The pads, spacers, and bolts are then assembled onto the aluminum side rail. After inspection and packaging, Almac exports the finished roof rack assemblies to the United States. It is the opinion of this office that the aluminum profiles are not substantially transformed in China by polishing and submerging in an electrolyte solution, as they do not emerge from these processes with a new name, character or use. The processes in China are minor and merely enhance the product. As a result, the country of origin for the roof rack assemblies will remain South Korea. As the country of origin of the subject items is South Korea, the Section 301 Trade Remedy duties are not applicable to the roof rack assemblies under consideration. 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