The country of origin of the JAS-Mixing Fork-1500kg

N343555 November 12, 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-Mixing Fork-1500kg Dear Mr. Marx: In your letter dated October 25, 2024, you requested a country of origin ruling on the JAS-Mixing Fork-1500kg on behalf of your client, Samsung SDS America Inc. The merchandise under consideration is identified as the JAS-Mixing Fork-1500Kg, an automated guided vehicle that resembles a straddle lift. It is designed to navigate autonomously throughout a battery manufacturing facility and is used to load, transport, and unload various materials during battery manufacturing. The JAS-Mixing Fork-1500Kg is assembled in Korea using components sourced from China, Germany, Japan, Korea, Malaysia, Singapore, Taiwan, and the Czech Republic. The components sourced from Germany, Japan, Malaysia, Singapore, and the Czech Republic are primarily sensors located throughout the vehicle. Based on your submission, the process begins in Korea where a chassis frame assembly is constructed. Metal sheets are cut, drilled, tapped, and bent into component shapes. The individual shapes are welded to form a structural frame that serves as the base that holds a lifting assembly. The lifting assembly is composed of structural and mechanical components that form the lifting mast of the vehicle. A worker assembles the lifting assembly by combining a Chinese-sourced hydraulic cylinder with Korean components, including an outer door frame, inner door frame, and gantry roller shaft. Next, a worker incorporates a Korean-sourced fork assembly, which is described as a subassembly with tines that move vertically within the lifting assembly. Afterwards, a Chinese hydraulic power unit is added, a subassembly that provides power to the hydraulic cylinder and is responsible for lowering and lifting the fork assembly. The next two steps focus on completing the lower frame section and involves installing the drive system and other components. The drive system includes a servo motor, drive reducer, drive motor, and main drive wheel. The remaining steps consist of adding various electrical components to the lower frame, including harnesses, motors, controllers, and other electrical devices. Wiring, which accounts for a large portion of the remaining assembly process, is completed before the external covers are installed. Lastly, software is loaded, and each vehicle is calibrated, inspected, and tested. 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-Mixing Fork-1500Kg, as described above, will be South Korea. 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