The country of origin of a brake pad

N359610 March 30, 2026 OT:RR:NC:N2:206 CATEGORY: Origin Hyeok Lee Daegu Cheong Sol Joint Customs Office 50, Sanghwa-ro 8-gil, Dalseo-gu Daegu 42765 South Korea RE: The country of origin of a brake pad Dear Mr. Lee: In your letter dated March 10, 2026, you requested a country of origin ruling on a brake pad, which you filed on behalf of your client, Sangsin Brake Co., Ltd. The article under consideration is a high-performance brake pad (Model TRQ), which is designed for passenger vehicles. You state that the steel back plates, sensors, and raw chemical ingredients for the friction material (the "mold") are of Chinese origin. At the time of importation into South Korea, the backing plates are already blanked into their final profile shape; however, they function merely as structural supports. In contrast, the raw chemical ingredients for the friction material are imported in their primary form and undergo significant processing in South Korea, including mixing and heat-treatment to create the functional mold that provides the essential braking characteristics. The raw materials for the friction compound are precisely weighed and blended using a proprietary formula developed in South Korea. The friction mixture is compressed and cured directly onto the Chinese-origin backing plates under high pressure and temperature. South Korean-origin anti-noise shims are then attached to the backing plates to complete the assembly. In the supplemental information submitted to our office on March 30, 2026, you stated that the brake pad will be packaged together with a Chinese slider kit, consisting of aluminum clips, and a grease packet in the same box and imported into the United States as a kit. When determining the country of origin, 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). It appears that we already ruled on the similar scenario in ruling N346445, dated March 25, 2025. In this ruling, we stated that “… the clips, shims, and backing plates from China are imported into Cambodia in their finished state and do not undergo a substantial transformation in Cambodia when assembled together into a brake pad set. However, the friction material undergoes mixing, molding, and pressing processes.” We further referenced ruling HQ 563486, dated July 24, 2006, where raw mineral wool lost its separate identity when subjected to operations such as dispersion in water, mixing with the other inputs, forming, drying, cutting, fissuring, punching and painting to produce the ceiling tiles. In the same vein, we ruled that the friction material in N346445 was substantially transformed in Cambodia. Since the friction material imparted the character of the entire brake pad, we ruled that the country of origin of the brake pad was Cambodia. Here too, the “mold” is substantially transformed in South Korea, as the raw chemicals are mixed and molded into the friction material. As per the above, the raw materials lose their separate identity and become integral parts of a new article. Since the “mold” is substantially transformed in South Korea, we are of the opinion that the country of origin of the entire brake pad (Model TRQ) will be South Korea. You state that the slider kit and grease packet from China should be recognized as products of South Korea as well. To support your analysis, you cite 19 CFR Part 102.11(c) (Part 102 rules). However, Part 102 rules are only applicable for products of the United States, Mexico, and Canada. None of the components in your request are from any of the countries mentioned above. As a result, Part 102 rules do not apply. Since the slider kit and grease packet are not transformed in any way and simply placed in the same box with the brake pad, they will retain their country of origin as China. 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 Liana Alvarez at liana.alvarez@cbp.dhs.gov. Sincerely, (for) James Forkan Designated Official Performing the Duties of the Division Director National Commodity Specialist Division