OT:RR:CTF:VS H337371 RRB
Jeffrey G. Richardson
Miller, Canfield, Paddock and Stone, P.L.C.
840 W. Long Lake Road, Suite 150 Troy,
MI 48098
RE: Country of Origin of an Automotive Fuel Pump; Section 301 Trade Remedy
Dear Mr. Richardson:
This is in response to your request, dated February 12, 2024, filed on behalf of
your client, Joinhands Injection System (Thailand) Co. Ltd.(“Joinhands-Thailand”),
regarding the country of origin of an Automotive Fuel Pump. In response to our
requests for additional information, you submitted supplemental submissions, dated
October 18, 2024; November 26, 2024; February 18, 2025; February 21, 2025; and
February 25, 2025. Our office also held a meeting with you on February 28, 2025.
You have requested that certain information submitted in connection with this
ruling request be treated as confidential. On October 8, 2024, you provided an
amended version of your submission, narrowing the parameters of your confidentiality
request. Inasmuch as the amended scope of your confidentiality request conforms to
the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved.
FACTS:
Joinhands Auto Spare Parts Co., Ltd (“Joinhands-China”) manufactures and
distributes fuel injectors, fuel pumps, and other automotive parts. It is headquartered in
Jiaxing, Zheijiang Province of China. Joinhands-China is the corporate parent of
Joinhands-Thailand, which operates a manufacturing facility in the Rayong Province of
Thailand, and is capable of manufacturing fuel pumps and fuel pump modules.
The merchandise at issue is an Automotive Fuel Pump that extracts fuel from the
tank and supplies fuel to the engine at a constant pressure and output power. The
Automotive Fuel Pump services piston-type internal combustion engines that convert
energy produced by the combustion of fuel into mechanical energy. The Automotive
Fuel Pumps are ultimately used in passenger vehicles, medium and heavy-duty trucks,
and commercial vehicles, as well as all-terrain vehicles and utility task vehicles.
Joinhands-Thailand states that the key assembled components of the subject
Automotive Fuel Pump consist of the following: pump core/motor subassembly, inner
support, and reservoir. The purpose of the pump core within the pump core/motor
subassembly is to pump out fuel from the fuel tank using the motor. Joinhands-Thailand
further explains that the pump core/motor subassembly serves as the essential
component of the Automotive Fuel Pump and contains the electric motor, including the
armature, which turns the turbine blade at high speed to create and maintain the
pressure needed for the Automotive Fuel Pump to correctly function. The reservoir
stores fuel, ensuring long term immersion of the pump within the fuel, while the inner
support is fixed to the Automotive Fuel Pump to connect it to the flange.
The Pump Core/Motor Subassembly
Joinhands-Thailand explains that the electric motor contained within the pump
core/motor subassembly represents the essence and primary function of the Automotive
Fuel Pump. It also explains that the armature is the key component of the electric motor
within the Automotive Fuel Pump.
The following manufacturing steps occur in Thailand to produce the armature:
press-fitting the shaft through the center of the lamination stack; assembling the
insulation coat; pressing the commutator; winding; welding; comprehensive testing of
semi-finished products; armature injection; finishing the commutator; balancing
measurements; moving and inspecting the burr; and comprehensive testing of the
finished products. In total, 7 discrete parts are sourced from various countries, including
3 parts from Thailand, 3 parts from China, and 1 part from Japan, which are assembled
together in Thailand through 11 separate steps to produce the armature component.
The following manufacturing steps also occur in Thailand to produce the rest of
the pump core/motor subassembly: manually inserting the valve stem, checking the
valve plug with a hand tool, and press-fitting into place; leakage test; installing an oil
bearing by manually inserting the ring and press-fitting into place; manually inserting the
relief valve spring, rubber ball, and relief valve plug with a hand tool and press-fitting
into place; riveting the brush and inductance components; manually inserting the brush
and inductor components into the lower die with a copper clamp that is press-fit to tightly
connect the components together; soldering; installing a shell cover into the pump shell
through pneumatic press-fitting; manually installing a magnet steel spring and retaining
clip that is then crimped into place; magnetizing and installing the armature; installing
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the impeller components through manual insertion into the pump casing; installing the
back cover through press-fitting; measuring the current seal; run-in testing;
comprehensive checks; removing residual oil; and packing into the warehouse. In total,
17 discrete parts are sourced from various countries, including 6 parts from
Thailand, 10 parts from China, and 1 part from Japan, which are assembled together in
Thailand through 17 separate steps to produce the pump core/motor subassembly (not
including the 11 manufacturing parts and steps involved in producing the armature).
According to the bill of materials of the finished Automotive Fuel Pump that
Joinhands-Thailand submitted with its ruling request, the pump core/motor subassembly
manufactured in Thailand constitutes the largest percentage of the cost breakdown of
the Automotive Fuel Pump, making up [ ]% of the Automotive Fuel Pump based on
cost percentage.1
Manufacturing of Other Constituent Parts: Reservoir and Inner Support
Other constituent parts that Joinhands-Thailand identifies as key components of
the Automotive Fuel Pump include the reservoir and inner support. The reservoir
subassembly is manufactured in Thailand and stores fuel, ensuring long term immersion
of the pump within the fuel. After the pump core/motor subassembly, the reservoir
comprises the second largest percentage of the cost breakdown of the Automotive Fuel
Pump, making up [ ]% of the finished product, due to the large size of its plastic
injection molded container. Along with the reservoir subassembly, the inner support is
also manufactured in Thailand through a plastic injection molding process and
comprises the third largest percentage of the cost breakdown of the Automotive Fuel
Pump at [ ]%.
Other constituent parts manufactured at Joinhands-Thailand’s facility in Thailand
include the flange (upper cover), electrical connector, and fuel level sensor. The flange
(upper cover) and electrical connector are manufactured through plastic injection
molding, while the fuel level sensor is manufactured by soldering resistor wire ends onto
a plastic holder, with a wire harness tie-strapped together and a fuel level float rod
plastic plug that is press-fit into place.
Final Assembly of the Automotive Fuel Pump
Joinhands-Thailand explains that the pump core/motor subassembly and
constituent parts, including the reservoir and inner support, are assembled into the final
Automotive Fuel pump in Thailand. The final assembly of the Automotive Fuel Pump in
Thailand consists of 17 unique parts plus the completed pump core/motor subassembly
(comprising 23 separate parts that have already been assembled into the pump
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Labor and packing costs in Thailand for the finished Automotive Fuel Pump are accounted for separately and
constitute [ ]% of the total cost percentage of the Automotive Fuel Pump.
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core/motor subassembly in Thailand). The processing steps in Thailand for final
assembly of the Automotive Fuel Pump include: pressing the connector on the top
cover; assembling the sensor on the top cover; testing the leakage of the top cover;
pressing the rollover valve on the top cover; testing the leakage of the rollover valve;
pressing the holder on the top cover; pressing the bellows on the pump; pressing the
strainer on the pump; assembling the strainer on the reservoir; assembling the check
valve on the reservoir; assembling the fuel level arm on the reservoir; welding
resistance; press positioning; pressing the fuel level; and assembling the module. After
the Automotive Fuel Pump is assembled, the final steps in Thailand consist of pressing
the bellows on the top cover; final performance and dimension testing; and packing. In
total, 18 discrete manufacturing steps are carried out in Thailand for the final assembly
of the Automotive Fuel Pump.
According to the bill of materials for the finished Automotive Fuel Pump, [ ]% of
the constituent parts and subassemblies based on cost percentage are manufactured in
Thailand, while [ ]% of the other constituent parts based on cost percentage are
manufactured China.2
ISSUE:
What is the country of origin of the automotive fuel pump for duty purposes?
LAW AND ANALYSIS:
When determining the country of origin for purposes of applying trade remedies
under Section 301, the substantial transformation analysis is applicable. 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 (CCPA 1982). In deciding whether the combining of parts or
materials constitutes a substantial transformation, the determinative issue is the extent
of operations performed and whether the parts lose their identity and become an
integral part of the new article. See Belcrest Linens v. United States, 6 CIT 204, 573 F.
Supp. 1149 (1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). Assembly operations that are
minimal or simple, as opposed to complex or meaningful, will generally not result in a
substantial transformation. Factors which may be relevant in this evaluation include the
nature of the operation (including the number of components assembled); the number of
different operations involved; and whether a significant period of time, skill, detail, and
quality control are necessary for the assembly operation. See C.S.D. 80-111, C.S.D.
8525, C.S.D. 89-110, C.S.D. 89-118, C.S.D. 90-51, and C.S.D. 90-97. If the
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Labor and packing costs in Thailand for the finished Automotive Fuel Pump are accounted for separately and
constitute [ ]% of the total cost percentage of the Automotive Fuel Pump.
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manufacturing or combining process is a minor one which leaves the identity of the
article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United
States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983).
The Court of International Trade more recently interpreted the meaning of
“substantial transformation” in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d
1308 (CIT 2016). Energizer Battery involved the determination of the country of origin
of a flashlight, referred to as the Generation II flashlight. All of the components of the
flashlight were of Chinese origin, except for a white LED and a hydrogen getter. The
components were imported into the United States and assembled into the finished
Generation II flashlight. The Energizer Battery court reviewed the “name, character and
use” test utilized in determining whether a substantial transformation had occurred and
noted, citing Uniroyal, Inc., 3 C.I.T. 220, 226, 542 F. Supp. 1026 (1982), aff’d per curiam,
702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of
assembly, courts have been reluctant to find a change in character, particularly when
the imported articles do not undergo a physical change.” Energizer Battery at 1318. In
addition, the court noted that “when the end-use was pre-
determined at the time of importation, courts have generally not found a change in use.”
Energizer Battery at 1319, citing as an example, National Hand Tool Corp. v. United
States, 16 C.I.T. 308, 312 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
The court applied the “essence test” in Uniroyal, Inc. v. United States, 3 CIT 220,
542 F. Supp. 1026 (1982), aff’d per curiam, 702 F.2d 1022 (Fed. Cir. 1983). There, the
court held that imported shoe uppers added to an outer sole in the United States were
the “very essence of the finished shoe” and were not substantially transformed into a
product of the United States. The attachment of the outsole to the upper was a minor
manufacturing or combining process which left the identity of the upper intact.
CBP has found that a simple assembly process, for example, an assembly that
involves press-fitting parts into each other, does not rise to the level of a substantial
transformation. See HQ H313089, dated February 16, 2021. In examining assembly
operations, CBP has looked to the nature of the assembly, as well as the origin of the
component that imparts the “essential character” to the end product. Id. In fan or pump
assembly cases, CBP has found that the motor imparts the essence of these types of
assemblies. See HQ H303864, dated December 26, 2019. Further, it is generally
CBP’s position that the country of origin of a motor will be determined by where the
essential components of that motor are made. See NY N305251, dated August 1, 2019.
However, whether an assembly process is sufficiently complex to rise to the level of a
substantial transformation is determined upon consideration of all of the operations that
occur in a particular country, including any subassembly processes that take place in
that country. See HQ H303529, dated June 6, 2019; see also NY N317575, dated
March 5, 2021.
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In HQ H282391, dated March 16, 2017, CBP determined that the country of
origin of a gear motor was the United States because the assembly process in the
United States amounted to a substantial transformation. The gear motor was comprised
of two subassemblies, a gear box and a motor. The assembly of the gear motor
consisted of assembling together 131 unique parts, and at least a total of 200 parts.
These parts were imported from various origins and were used to first assemble the
gear box and motor subassemblies, and then to assemble the complete gear motor
through a complex operation with specialized skill and expertise. CBP noted that the
complex operations involved at least 27 steps and took approximately two hours. CBP
also considered the worker experience and training, stating that the workers were hired
with previous experience and underwent additional training in order to reach proficiency
in the assembly process. CBP thereby concluded that the foreign components lost their
individual identities and became an integral part of a new article, the gear motor, and
possessed a new name, character and use, amounting to a substantial transformation
as a result of the assembly operations.
In NY N309707, dated March 11, 2020, a fan blower was produced in Mexico
from parts largely of Chinese origin. The stator core and the rotor shaft and yoke, as
well as the magnetic wire, insulator sheets, bottom housing, bearing housing, ball
bearings and lead wire harness were all sourced from China. However, the motor’s
stator subassembly was itself assembled in Mexico by winding magnetic wire onto the
Chinese stator core. The printed circuit board assembly (“PCBA”) and the Chinese
insulator sheets were then connected and soldered onto the stator assembly, and the
stator assembly was in turn installed and bonded to the Chinese bottom housing. A lead
wire harness from China was then soldered to the contacts of the PCBA assembly and a
Japanese seal was installed in the bottom housing. The stator assembly then
underwent a curing process. Next, the rotor assembly was created by installing a
retaining ring on a Chinese shaft to form a shaft assembly. Washers from Mexico or the
United States were then installed onto the shaft, and ball bearings were bonded to
bearing housings and the shaft using adhesive. During the rotor assembly curing
process, a magnet yoke assembly was created by bonding a magnet to the rotor yoke
using adhesive, and then magnetizing the magnet using specialized equipment. The
magnetic yoke assembly was then bonded to the rotor assembly. Finally, once the
completed rotor assembly was cured, a Chinese impeller was press fitted and bonded
onto the rotor assembly with adhesive and cured. Then, the fan assembly and the rotor
assembly were fastened to the stator assembly and a Chinese top housing was fitted
and screwed onto the impeller attached to the completed rotor and stator assemblies,
thus completing the fan blower. Each complete fan blower assembly was then tested.
CBP found that the various manufacturing and assembly processes in Mexico created a
new and different article of commerce, as the air circulating and motor components of
each unit, to include the Chinese and Japanese components, were subjected to
operations resulting in the individual parts losing their separate identities to become a
new article, i.e., a fan blower assembly that consisted of an impeller and a motor.
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In HQ H318255, dated November 3, 2021, CBP considered the country of origin
of a fan blower for CPAP machines that was assembled in Mexico from subassemblies
that were also assembled in Mexico. Many of the components that form the
subassemblies were sourced from various countries, including China, Japan, Mexico,
and the United States. A stator core, rotor yoke and impeller were assembled into four
subassemblies, namely, a rotor assembly, stator assembly, fan assembly, and magnet
yoke assembly, using a variety of processes, including bonding and curing, soldering,
winding, screwing, magnetization, and press-fitting, which included joining the impeller
to the motor. Where various components were assembled into four subassemblies in
Mexico using a variety of processes including bonding and curing, soldering, winding,
screwing, press-fitting and magnetization, and where such subassemblies were then
assembled together to form the fan blower in Mexico, CBP found that the various
components of the fan blower assembly were substantially transformed as a result of
these processes.
In HQ H303866, dated February 13, 2020, CBP considered the country of origin
of automobile windshield washer pumps. Here, approximately half of the discrete parts
were shipped to Mexico to be combined with components from Mexico to form
subassemblies. These subassemblies were combined to create a motor assembly. The
processing of the subassemblies that comprised the finished pump assembly was
complex and involved soldering, fusing, machining, plastic injection molding, and
crimping, as well as press-fitting. Accordingly, CBP found that the discrete parts were
substantially transformed when combined to form a finished centrifugal pump in Mexico.
In the instant case, over 35 discrete parts from Thailand, China, and Japan are
used to manufacture the pump core/motor subassembly, reservoir, inner support and
other constituent parts at Joinhands-Thailand’s manufacturing facility in Thailand. The
various subassembly and assembly processes are complex. In particular, there are 28
separate steps required just to manufacture the pump core/motor subassembly (11
steps for the armature component and 17 steps for the rest of the pump core/motor
subassembly). As described in more detail above, the manufacturing process for the
pump core/motor subassembly, includes the electric motor and the armature within the
motor, which is responsible for turning the turbine blade at a high speed to create and
maintain the pressure needed for the Automotive Fuel Pump to correctly function.
Through 28 discrete manufacturing steps, which include welding, soldering,
magnetization, machining, plastic injection molding, and crimping, the various separate
parts are substantially transformed into the pump core/motor subassembly in Thailand.
A series of plastic mold injection operations are also performed at Joinhands-Thailand’s
manufacturing facility in Thailand, along with soldering and press-fitting, to produce
other key components, including the inner support and reservoir. These subassemblies
and other components are then combined to assemble the finished Automotive Fuel
Pump through a series of 18 additional steps, also in Thailand. Accordingly, the various
components will lose their individual identities and will become an integral part of a new
article, the Automotive Fuel Pump, with a new name, character, and use. Therefore, we
find that the discrete parts are substantially transformed in Thailand when they are
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combined to form a finished Automotive Fuel Pump, and the country of origin will be
Thailand.
HOLDING:
The country of origin of the Automotive Fuel Pump for duty purposes will be
Thailand.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is
issued on the assumption that all of the information furnished in connection with the
ruling request and incorporated in the ruling letter, either directly, by reference, or by
implication, is accurate and complete in every material respect. The application of a
ruling letter by [CBP] field office to the transaction to which it is purported to relate is
subject to the verification of the facts incorporated in the ruling letter, a comparison of
the transaction described therein to the actual transaction, and the satisfaction of any
conditions on which the ruling was based.”
A copy of this ruling letter should be attached to the entry documents filed at the
time this merchandise is entered. If the documents have been filed without a copy, this
ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch
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