The country of origin of a sprocket

N344905 January 15, 2025 OT:RR:NC:N1:102 CATEGORY: Origin Riccardo Giorgi Beyond Bounds S.R.L. Strada Repubblica, 31Parma 43123Italy RE:  The country of origin of a sprocket Dear Mr. Giorgi: In your letter dated January 2, 2025, on behalf of ITR America LLC, you requested a country of origin ruling on an article referred to as a sprocket, model number US043. Pictures and a description of the manufacturing processes were provided with your submission. The subject article is used in earthmoving machinery. The manufacturing process initiates in Vietnam with the casting process. Molten alloy is poured into a sand mold to form a ring with 23 teeth. Afterwards, the ring featuring teeth is sent to China, where it is subject to a heat treatment for hardness, a machining process that creates the final tolerances of the surface and teeth, and a drilling activity that creates the 16 holes that are used to affix the sprocket to the final drive of its respective machine. Lastly, the sprocket is painted according to the customers’ preferences and afterwards packaged for shipment. 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). In viewing the illustrations submitted for the sprocket, the casting features an outer profile with teeth and a circular center hub that has an internal diameter discernable to the perimeter of the final drive prior to being exported from Vietnam. In this condition, the casting is recognizable as a sprocket that will transmit power. It has a pre-determined end use prior to being subject to the described finishing processes in China. As such, the processes completed in China do not substantially transform the sprocket casting, nor do they change the shape, character, or predetermined use of the Vietnamese casting. The sprocket casting is not transformed in China into a new and different article of commerce with a name, character, and use distinct from the article exported from Vietnam. Accordingly, the county of origin for the finished sprocket is Vietnam for the purpose of Section 301 Trade Remedies. 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 Sandra Martinez at sandra.martinez@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division