The country of origin of a hydraulic bottle jack

N344692 January 10, 2025 OT:RR:NC:N1:103 CATEGORY: Origin; Marking Jie Tan JT Law Services 901 North Broadway, Suite 20 White Plains, NY 10603 RE: The country of origin of a hydraulic bottle jack Dear Ms. Tan: In your letter dated December 17, 2024, you requested a country of origin ruling on a bottle jack on behalf of your client, Torin (Thailand) Co., Ltd. The subject merchandise is a hydraulic bottle jack that will be imported under model numbers TH90604XT and TH91204XT. Both model numbers are functionally the same but will have different lifting capacities and lifting ranges. Described as vertical hydraulic jacks that utilize a high-pressure cylinder and pump mechanism, they are suitable for use during automotive repair as well as in industrial, farming, and construction applications. The subject bottle jacks are assembled in Thailand using materials and components sourced entirely from China. The manufacturing process begins in Thailand with a subassembly referred to as a piston structure, which requires a piston rod, piston head, extension screw, and screw sleeves. The piston rod is formed in Thailand using a process that involves machining female threads into one end of a cut-to-length steel rod and boring a hole into its opposite end. The piston head is cast in China then sent to Thailand where it is machined and polished. The extension screw and screw sleeves are sourced from China. The piston structure is formed using operational steps described as tightening, fitting, adjusting, and combining the individual components. Additional components are required for final assembly. The base of the bottle jack is cast in China. In Thailand, the casting is machined to its final tolerances before holes and tunnels are drilled into the base. Pre-cut Chinese tubes are machined and drilled to form the inner cylinder and the outer sleeve of the central cylinder. The pump assembly, consisting of a pump body and pump cores, is sourced from China. During final assembly, the inner cylinder is welded to the base. Once tested, the outer sleeve is added and welded to the subassembly before an oil filter and screen are installed. Next, the pump assembly is welded to the base and a Chinese-sourced handle sleeve is attached. Lastly, the piston structure is pressed into the subassembly, oil is added, the unit is painted, and the finished bottle jack undergoes final testing. 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). Additionally, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” 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 the marking laws and regulations. The final assembly operations that occur in Thailand do not result in a substantial transformation of the Chinese components. The process is not complex enough to transform the merchandise into a new article. As previously described, the assembly operations rely on intermediate components sourced exclusively from China. The components arrive in Thailand in various stages of completion and with a pre-determined end use. Thus, based on the totality of the circumstances, the country of origin of the hydraulic bottle jacks, model numbers TH90604XT and TH91204XT, will be China. In your letter, you also inquired about the country of origin marking for the subject hydraulic bottle jack. A marked sample was not submitted with your letter for review. Based on the images submitted, the retail packaging identifies the brand, model number, lifting capacity, and the words “in U.S.A. distributed by Torin Inc., Ontario, CA 91761” near the phrase “Made in XXXX.” Due to its close proximity, the print size of the marking should be increased to ensure it is legible. As noted above, the hydraulic bottle jack is considered a product of China for origin and marking purposes at the time of importation into the United States. 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. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. The proposed marking of the imported hydraulic bottle jack, as described above, is an acceptable country of origin marking if conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. 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