The country of origin of an engine crane

N348514 May 21, 2025 OT:RR:NC:N1:103 CATEGORY: Origin Helen Xiao Ernst & Young LLP 155 N Wacker Dr. #2000 Chicago, IL 60606 RE: The country of origin of an engine crane Dear Ms. Xiao: In your letter dated May 1, 2025, you requested a country of origin ruling on behalf of your client, Torin (Thailand) Co., LTD. The merchandise under consideration is identified as an engine crane, model number THE02-2CX, and is described as a crane for raising and lowering a vehicle engine. It is not self-propelled and has a metal frame with foldable legs and an extendable boom. A non-motorized power unit allows an operator to raise and lower the engine. The subject engine crane is produced in Thailand using materials and components sourced from China and Thailand. It will be imported as individual parts in retail packaging for the end user to assemble. The unassembled parts are broken down into a power unit, structural components, and other parts. According to your submission, the power unit and all structural components are produced in Thailand. The main subcomponents of the power unit include a base, outer sleeve, cylinder, base connection, pump body, piston rod, and piston cap. Each of these subcomponents are created in Thailand. For example, the power unit’s base is forged in Thailand, machined to its final tolerances, drilled to create oil passage holes, and then tapped to create threads for the oil and safety valves. The piston cap is created using a casting process and then finished in Thailand, which includes step turning and creating grooves. The outer sleeve, cylinder, pump body, and piston rod are created from steel pipe or steel bars that are cut to length then shaped using machinery that carry out milling, CNC machining, grinding, chamfering, drilling, etc. These components are assembled into the ultimate power unit, which is filled with oil, load tested, and painted. The structural components include a base assembly, a post, a boom, a boom extension, supports, and two foldable legs. Each of these parts are created from steel pipes, steel sheets, steel flats, or rectangular tubing. For example, steel sheets and tubing are transformed into intermediate metal forms and shapes identified as support plates, cross braces, legs, supports, sleeves, etc. These intermediate metal forms are then fitted and welded together to create the post. The base assembly, boom, boom extension, and supports are created using similar operational production steps, which involve creating intermediate metal forms and shapes that are subsequently welded into a finished part. All the components are packaged together with finished parts sourced from China, identified as a hook and chain, casters, front wheels, bolts, nuts, pins, and washers. When determining the country of origin for purposes of applying current trade remedies under Section 301, and any additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter 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). Based upon your description of the manufacturing operations, we note the dominant components, including the power unit and all the structural components, are manufactured in Thailand. After processing, these critical components of the engine crane emerge with a new name, character, and use, different from that possessed by the materials (e.g., steel pipes, steel bars, steel sheets, steel flats, etc.) from which they were formed. Thus, based on the totality of the circumstances, the country of origin of the engine crane, model number THE02-2CX, will be Thailand. 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, (for) Steven A. Mack Director National Commodity Specialist Division