The tariff classification and country of origin of a turbo thruster kit

N362414 July 14, 2026 CLA-2-84:OT:RR:NC:N1:102 CATEGORY: Classification; Origin TARIFF NO.: 8414.59.3000 Misty Gibbins Pacific Customs Brokers Inc. 2150 Peace Portal Drive Blaine, WA 98230 RE: The tariff classification and country of origin of a turbo thruster kit Dear Ms. Gibbins: In your letter dated June 17, 2026, you requested a tariff classification and country of origin determination ruling for the purpose of marking and additional duties on behalf of your client, BD Engine Brake Inc. The item under consideration is the BD Diesel Turbo Thruster II Kit, part number 1047511. The kit is a complete automotive turbocharger assembly packaged with a silicone boot, a clamp, bolts and O-rings. The turbocharger assembly, which imparts the essential character of the kit, primarily consists of a backplate, an aluminum compressor wheel, a compressor housing, a turbine housing and wheel, and features a rod end and a wastegate actuator. The turbocharger does not operate in excess of 35 pounds per square inch under normal conditions. The applicable subheading for the turbo thruster kit will be 8414.59.3000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; gas-tight biological safety cabinets, whether or not fitted with filters; parts thereof: Fans: Other: Other: Turbochargers and superchargers. The general rate of duty will be 2.3 percent ad valorem. With respect to origin, the final assembly occurs in Canada using components primarily from China and Canada, and a compressor wheel from Malaysia. Prior to the final assembly, a back plate recognizable as a finished back plate for a turbocharger is exported from China and imported into Canada to undergo machining processes. The machining processes finalize the geometric channels of the backplate. The final assembly process begins by installing a heat shield from China onto a bearing housing from China. Afterwards, a piston ring is installed onto the shaft of a turbine wheel from China, which is followed by the installation of a journal bearing and a spacer. A second journal bearing is then placed onto the shaft of the turbine wheel. During the next step, the shaft is inserted into a bearing housing, and a turbine housing from China is bolted in place. Subsequently, a piston ring is installed onto an oil component that is afterwards inserted into a backplate. A seal is then installed onto a backplate, and a thrust collar is inserted onto the shaft of a turbine. In the next step, the backplate is rotated, bolted in place and O-rings are installed. A compressor wheel from Malaysia and a compressor cover from China are installed and secured in place using a clamp plate and bolts. The process continues by securing a rod end from Canada onto the waste gate port with actuator clips, and then an actuator from China is inserted through the bracket of the compressor cover. Lastly, a nut is installed and tightened onto the rod end. Grease and lubricant are applied throughout the assembly process. Once complete, the turbocharger undergoes dynamic balancing and is packaged with components that are used during the installation of the turbocharger assembly (a clamp from the United States, seven bolts from China and three O-rings from Taiwan or China) and a silicone boot from China that connects the turbocharger assembly to other components in the vehicle. When determining the country of origin for purposes of applying current trade remedies under Section 301 and additional duties, 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). CBP has held that whether an assembly process is sufficiently complex to rise to the level of a substantial transformation is determined upon consideration of all the operations that occur within that country. Based upon on the description of the assembly process in Canada, the components are combined with a compressor wheel from Malaysia to create a turbocharger assembly, which imparts the essential character of the turbo thruster kit. The turbocharger assembly increases the pressure and density of air directed into an engine. The processes that occur during the final assembly substantially transform the non-Canadian components into new and different articles of commerce with a distinct name, character, and use. Thus, based on the totality of the circumstances, the country of origin of turbocharger assembly will be Canada. Therefore, as the country of origin of the turbocharger assembly will be Canada, the country of origin of the turbo thruster kit for the purpose of duties will be Canada. 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. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940). 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. Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11. Applied in sequential order, 19 CFR Part 102.11(a) and (b) provide that the country of origin of a good is the country in which: (1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. The subject merchandise is neither “wholly obtained or produced” nor “produced exclusively from domestic materials.” Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine country of origin. Accordingly, Rule (3) applies. Section 102.20 sets forth specific rules by tariff classification. The pertinent tariff shift rule for subheading 8414.59 states: A change to subheading 8414.10 through 8414.80 from any other subheading, including another subheading within that group. Since the tariff shift can occur from any other subheading, including within the aforementioned 8414 subheading group, the tariff shift rule is met. Accordingly, the country of origin of the turbo thruster kit, for the purpose of marking will be Canada. The principles governing the country of origin marking of sets, mixtures, and composite goods, were addressed by CBP in Treasury Decision 91-7. In this decision, CBP determined in relevant part that for purposes of 19 U.S.C. § 1304, the relevant inquiry is whether the materials or components have been substantially transformed as a result of their inclusion in a set, mixture, or composite good. If the materials or components have not been substantially transformed, each component must be individually marked to indicate its own country of origin. If the marking would not be visible through the retail packaging, then the retail packaging must be marked to identify the origin of these articles. In this case, the turbocharger assembly and the silicone boot, although packaged and classified together as a set, do not lose their separate identities. However, the installation hardware (the clamp, bolts and O-rings) which will be incorporated into the turbocharger assembly at the time of installation, do not retain their separate identities. Therefore, for marking purposes under 19 U.S.C. § 1304, turbocharger assembly and the silicone boot must be marked to identify their individual countries of origin. The mounting hardware for this set does not need country of origin markings. The duties cited above are current as of this ruling’s issuance. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/. This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the classification stated above, the merchandise covered by this ruling may also need to be reported with either the Chapter 99 provision under which an additional tariff applies or one of the Chapter 99 provisions covering exceptions to such tariffs. For further information to assist with the importation process, please refer to the frequently updated Cargo Systems Messaging Service (CSMS) messages at https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and the Trade Remedies page at https://www.cbp.gov/trade/programs-administration/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, (for) James P. Forkan Director National Commodity Specialist Division