The country of origin of an assembly of motor vehicle suspension parts

N340493 July 1, 2024 OT:RR:NC:N2:206 CATEGORY: Origin Minseok Choi Onestop Customs Corporation D-706-ho, 700, Pangyo-ro, Bundang-gu,Seongnam-si, Gyeonggi-do 13516South Korea RE:  The country of origin of an assembly of motor vehicle suspension parts Dear Mr. Choi: In your letter dated June 3, 2024, you requested a country of origin ruling on an assembly of motor vehicle suspension parts on behalf of HL MANDO Corporation. The merchandise under consideration is identified as a Top Mount Assembly. The assembly consists of a plain sliding (PS) bearing that is press-fit into a strut top mount/insulator. The top mount functions to connect the completed strut assembly to the body of the vehicle and the bearing allows for smooth rotation of the strut. In the U.S. these components will be assembled to a shock absorber and coil spring to produce a strut assembly. The bearing represents 46% of the value and the mount represents 54% of the value of the imported assembly. The provided documentation states that the components of the Top Mount Assembly includes a PS bearing that originates in China, and a main plate, a bearing plate, rubber, an upper cup, a lower cup, and three bolts that originate in South Korea. The insulator assembly is created in South Korea using the South Korean components. First, the main plate and bearing plate are encapsulated in rubber through a rubber injection process. Second, the upper cup and lower cup are welded into that assembly and third, three bolts are inserted. The Top Mount Assembly is then completed in South Korea by press-fitting the Chinese PS bearing into the South Korean insulator assembly. You stated in your request that the assembly is done using a press facility, and “since it is mounted using the equipment, the operator only needs to check whether it is operating normally and understand the assembled state.” The final assembly is then shipped to the U.S. to be incorporated into a full strut assembly. 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). 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) (Uniroyal). 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 Uniroyal case, the court held that an upper was not substantially transformed when attached to an outsole to form a shoe and that the upper was "the very essence of the completed shoe." 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 this instant case, the PS bearing from China is shipped to South Korea for assembly with the insulator. The assembly is rather simple - it involves press fitting the bearing into the insulator. It is the opinion of this office that the assembly of the PS bearing to the insulator does not result in a substantial transformation because the press-fitting process is not complex. Independent research conducted by this office has found that the assembly consists of two components that serve two completely different functions. For example, on the KYB website at the tab, “All about Strut Mounts”, the article titled “Strut Mounts: the unsung hero. Keeps your ride quiet and vibration free” states, “As the name (strut mount) implies, it’s a component that attaches the suspension strut to the vehicle. In addition, it insulates the tire noise & vibrations from the vehicle. Many (front) strut mounts also contain a bearing or bearing plate that serves as the steering pivot.” See https://www.kyb.com/resources/shock-strut-basics/all-about-strut-mounts/#:~:text=As%20the%20name%20(strut%20mount,mount%20is%20like%20a%20sandwich. Since the two components have completely independent functions, the country of origin of the entire assembly will be South Korea and China. The country of origin of the top mount insulator will be South Korea, while the country of origin of the PS bearing will be China. Thus, trade remedies under Section 301 of the Trade Act of 1974, as amended, from China will apply to the PS bearing at issue. Please note, the subject merchandise may be subject to antidumping duties and countervailing duties (AD/CVD).  Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce (ITA) and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP).  General information regarding the ITA and AD/CVD can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties.  The ITA’s “Guide on How to File for an Antidumping/Countervailing Duty Scope Ruling Request” is available athttps://enforcement.trade.gov/scope/Request-Scope-Ruling.pdf 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