The country of origin of the JAS-JR Assembly-600kg

N343416 November 13, 2024 OT:RR:NC:N1:103 CATEGORY: Origin Aaron Marx Crowell & Moring LLP 1001 Pennsylvania Ave. NWWashington, DC 20004 RE:  The country of origin of the JAS-JR Assembly-600kg Dear Mr. Marx: In your letter dated October 18, 2024, you requested a country of origin ruling on the JAS-JR Assembly-600kg on behalf of your client, Samsung SDS America Inc. The JAS-JR Assembly-600kg is described as an automated guided vehicle designed to lift and transport stacked trays containing battery jelly rolls. It navigates autonomously throughout a battery manufacturing facility, traveling to the designated pickup point. The vehicle positions itself underneath a tray, raises the tray using a built-in lifting mechanism, and transports it to the next location. The JAS-JR Assembly-600kg is assembled in Korea using components sourced from China, Germany, Japan, Korea, Singapore, and Taiwan. The components sourced from Germany and Japan are primarily sensors and the only component sourced from Taiwan is a Wi-Fi module. The final assembly process centers around two core subassemblies, identified in your submission as a lifting assembly and drive frame assembly. The drive frame assembly is described as the lower part of the vehicle. Its base is a drive plate chassis sourced from China and the foundation for numerous mechanical and electrical components. The assembly process begins with fastening the mechanical components, including a drive motor, drive assembly, casters, and collision bars, to the drive plate chassis. Next, a worker installs the electrical components, identified in your submission as a lifting motor, safety laser, Wi-Fi module, main control board, alarm, and sensors. A worker proceeds to complete the upper portion of the vehicle, a process that involves fastening a structural metal frame and an electrical lift assembly to the drive frame assembly. You state both items are manufactured exclusively using Korean components and form the core of the vehicle’s lifting system. By design, the electrical lift assembly is the mechanical component that drives the upper mechanism to lift upward. Once these items are incorporated into the drive frame assembly, additional electrical components are added, including the battery, display, and additional sensors. Lastly, a worker completes the wiring, fastens the external covers, and sends the vehicle for testing, calibration, and inspection. When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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). CBP has held that whether an assembly process is sufficiently complex to rise to the level of a 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. Based upon your description of the manufacturing operations, the sum of the final assembly and the preassembly of core components in Korea constitutes a substantial transformation.  Thus, based on the totality of the circumstances, the country of origin of the JAS-JR Assembly-600kg, as described above, will be South Korea. The merchandise in question 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 and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb. 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 at https://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 Paul Huang at paul.huang@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division