The country of origin for an electric stand-up all-terrain vehicle (ATV)

N344843 January 22, 2025 OT:RR:NC:N2:201 CATEGORY: Origin Aaron Marx Crowell & Moring, LLP 1001 Pennsylvania Ave NWWashington, DC 20004 RE:  The country of origin for an electric stand-up all-terrain vehicle (ATV) Dear Mr. Marx: In your letter dated December 26, 2024, you requested a country of origin ruling on behalf of your client, Mia Dynamics LTD, for the MIA 4 Stand-Up electric ATV, which you state will be imported from China and manufactured from parts from Italy, Taiwan, and China with the frame, in its entirety, being manufactured in France. The Mia 4 is a four-wheeled ATV designed for enhanced stability, safety, and versatility.  You indicated that the Ball Joints are sourced from Italy, the Shock Absorbers are sourced from Taiwan, and the Steering Tube, and all pieces of the Frame Assembly are sourced from China.  The frame, consisting of extruded aluminum (in the form of tubes, sheets, profiles or sections) will be shipped from China to France where it will be cut, bent, shaped, welded, powder coated, and painted.  The finished frame will be sent back to China for further assembly and packaging before being shipped to the United States. You state that the manufacturing process consists generally of the following steps: 1.      Procurement of Raw Materials and Components: the manufacturer sources all necessary components, including ball joints, shock absorbers, batteries, motors, and electronics. 2.      Manufacturing of Parts: Certain metal and plastic components are produced using processes such as stamping, cutting, and bending for metal components and injection molding for plastic components. 3.      Metal and Plastics Production: The manufacturer produces plastic or metal parts using pre-developed molds. 4.      Battery Production: The cells are assembled into battery packs and tested to ensure they meet performance standards. 5.      Machining and Fabrication: Critical components such as joints, suspension parts, and mounting brackets may require additional CNC machining to ensure tight tolerances and accuracy. The metal frame undergoes welding and possible heat treatment to strengthen its structure. 6.      Electrical Systems: The electrical systems, including the motor, controller, and wiring, are assembled. 7.      Mechanical Parts: Mechanical parts, such as the shock absorbers, brakes, and ball joints are assembled. 8.      Battery and Electronics Installation: The battery, motor, and electronic unit are installed, followed by wiring of all electrical components. 9.      Tires and Suspension: Wheels, tires, and suspension components are attached. 10.   Body Panels and Exterior Finish: Final touches are completed, including attaching body panels, branding decals, and other cosmetic elements. 11.   Quality Control and Testing: Each assembled scooter undergoes internal quality checks to ensure that everything is properly aligned to meet safety standards. The motor, brakes, suspension, and electronics are tested to confirm that they are working as expected. Some units undergo testing under stress conditions to simulate real-world usage. 12.   Packaging: If necessary for shipping purposes, some parts like handlebars or wheels might be partially disassembled. The scooters are packed into boxes with protective materials and documentation is added. 13.   Logistics: Finished scooters are prepared for export with logistics arranged for transport to international markets. MIA Dynamics requests a binding ruling on the Country of Origin of its Mia 4 scooter under the following scenario: The Ball Joints are sourced from Italy, the Shock Absorbers are sourced from Taiwan, and the Steering Tube, and all pieces of the Frame Assembly, are manufactured in France (extruded aluminum in the form of tubes, sheets, profiles or sections) will be shipped from China to France.  Then the metal will be cut, bent, shaped, welded, powder coated, and painted in France. The finished frame will be sent back to China for further assembly. 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. It has been the opinion of CBP that the frame, which in this case is a product of France, is the part that establishes the character of the Stand-Up ATV.  The culmination of the production processes performed in China does not substantially transform the frame.  Since a substantial transformation does not occur as a result of the Chinese processing, the country of origin for marking purposes would be France upon importation into the United States and as such, the Section 301 trade remedy would not be applicable.  Because the frame has been deemed the article that imparts the character of the product, and that frame being a product of France, the appropriate marking should indicate that the MIA 4 is “Made in France.” 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 Matthew Sullivan at matthew.sullivan@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division