The country of origin of a road roller

N340482 June 24, 2024 OT:RR:NC:N1:103 CATEGORY: Origin MacKensie Sugama Trade Pacific PLLC 700 Pennsylvania Ave. SE, Suite 500Washington, DC 20003 RE:  The country of origin of a road roller Dear Ms. Sugama: In your letter dated May 31, 2024, you requested a country of origin ruling on a road roller on behalf of SANY Heavy Industry India Pvt. Ltd. The merchandise under consideration is identified as a road roller, model number SSR120HT, which is described as heavy machinery used during construction to compact soil, gravel, concrete, or asphalt. According to the documents provided, the subject road roller is self-propelled and features a single vibratory drum located at the front of the machine. Pictures and a description of the manufacturing processes were provided with your submission. The subject road roller is assembled in India using components sourced from China, Germany, India, the United Kingdom, and the United States. Based on the information provided, the road roller consists of four main sections, which are identified as a rear frame, roller drum, hydraulic system, and engine. The rear frame and roller drum are manufactured at SANY’s facility in India. The rear frame is described as the main structural frame of the road roller to which the engine, cab, hydraulic system, and controller system are mounted. All of the metal elements used to construct the rear frame are produced in India. The process begins with a worker inspecting each element before clamping it in place within a welding fixture. A welding robot is used to join the elements, creating a weldment that still requires multiple plates and supports, including an engine support, hose support, rear axle support plate, radiator support plate, cylinder support plate, and more. After the plates and supports are added, the frame is polished, shot blasted, pre-treated, dried, and painted. The roller drum is also manufactured in India, a component that will be attached to a central articulated joint on the rear frame. The roller drum is constructed by welding various metal elements to a steel cylinder, including a support bar, support plate, shock absorber mounting plate, right spoke plate, and more. According to your submission, all of the elements used to manufacture the roller drum are also produced in India. During final assembly, the rear frame is transported from station to station, where components are incrementally installed. At the first station, a worker installs an Indian-sourced rear axle assembly, an assembly integral to the transmission and driving system. At the next station, the center articulated frame is assembled and bolted to the rear frame along with the main pumps that are sourced from Germany. A worker also installs a diesel engine that is sourced from the United Kingdom, along with its corresponding air intake system. The rear frame continues to the next station where several steps are completed, including installing the exhaust system, fastening the exterior covers, securing the battery, and installing the fuel tank and hydraulic oil tank. Before the roller drum can be attached to the rear frame, additional components need to be preassembled into the drum. A vibrating end amplitude device, a plunger motor, and a roller bearing are incorporated into the roller drum before it is bolted to the central articulated joint. Separately, steering components, a seat, and a control box are installed into a cab assembly, which is subsequently lifted and mounted on top of the rear frame. At the next station, a tire and rim assembly are added along with components for the hydraulic system, which include a manual oil pump, gear pump, and hose assembly. Lastly, the completed road roller is inspected and tested for functionality. With regard to your request for the appropriate country of origin of the road roller, 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 in order to render such other country the “country of origin” within the meaning of this part. 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. CBP has held that whether an assembly process is sufficiently complex to rise to the level of substantial transformation is determined upon consideration of all of the operations that occur within that country, including any subassembly processes that take place in that country. Although the final assembly process that occurs in India requires numerous foreign inputs, significant manufacturing operations also occur in India.  Multiple core assemblies are wholly manufactured in India including the rear frame, the roller drum, and their subcomponents. Based upon your description, the sum of the manufacturing, preassembly of core components, and final assembly in India constitutes a substantial transformation. Thus, based on the totality of the circumstances, the country of origin of the SSR120HT road roller will be India. 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 Paul Huang at paul.huang@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division