OT:RR:CTF:VS H347172 RRB

Mr. Cheng Chao Desmond Lee
Everspark Industries SDN BHD
PTD114234, Jalan Murni 15, Taman Perindustrian Murni
81400 Senai, Johor, Malaysia

RE: Country of Origin of a Starter Assembly

Dear Mr. Lee:

This is in response to your request, dated March 20, 2025, filed on behalf of Everspark Industries SDN BHD (“Everspark”), regarding the country of origin of an alternator assembly and starter assembly. This ruling addresses the country of origin of the starter assembly only. We will address the country of origin of the alternator assembly in a separate ruling.

FACTS:

The item under consideration is identified as a starter assembly that is used in spark-ignition internal combustion automotive engines.

You explain that the purpose of the starter is to crank the engine in order to initiate the combustion process. To do so, the starter needs to spin a flywheel and generate the spark needed to initiate the internal combustion. Hence, the armature and field coil work together to convert electrical energy from the battery into mechanical energy to crank the engine. When the ignition switch is turned on, a small current is sent to the field coil, creating the initial magnetic field. When the starter switch is activated, a larger current is sent to the armature, causing it to rotate rapidly. This rotational motion is transferred to the engine's flywheel, which starts the engine. The interaction between the armature's magnetic field and the field coil's magnetic field causes the armature to rotate, and the current flow through the field coil generates the torque required to crank the engine. Starter Assembly Manufacturing Operations

The starter assembly consists of the following components:

• Armature from Malaysia • Field coil from Malaysia • Solenoid switch from Malaysia • Starter casing from Taiwan • Clutch and gears from China • Carbon brush from Thailand • Bearing from China • Bolts and screws from Malaysia

Based upon the submitted documentation, the most expensive component of the starter is the armature that is produced in Malaysia, followed by the field coil and solenoid, which are also produced in Malaysia.

You further state that all of the manufacturing processes to produce the subject starter assembly take place in Malaysia. This includes wire wrapping to create the armature and field coil, which are similar in construction and function to the stator and rotor used in an alternator assembly. In support, you describe the entire manufacturing operations to produce the starter assembly, which consists of 43 separate steps. This includes placing a bearing on a jig, installing the clutch sets and gear lever into the housing, placing the armature on a jig, placing the yoke on a plate, and installing the solenoid switch, and final assembly.

ISSUE:

What is the country of origin of the subject starter assembly for purposes of trade remedies?

LAW AND ANALYSIS:

When determining the country of origin for purposes of applying trade remedies, 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

2 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. 85-25, C.S.D. 89-110, C.S.D. 89-118, C.S.D. 90- 51, and C.S.D. 90-97. If the 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).

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 components contained in the end product. Id. 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.

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 HQ H337371, dated April 24, 2025, CBP determined that the country of origin of an automotive fuel pump that extracts fuel from the tank and supplies fuel to the engine at a constant pressure and output power was Thailand. There, various parts from Thailand, China, and Japan were used to manufacture the key pump core/motor subassembly, as well as the reservoir, inner support and other constituent parts in Thailand. CBP determined that through 28 discrete manufacturing steps, which included welding, soldering, magnetization, machining, plastic injection molding, and crimping, various separate parts were substantially transformed into the pump core/motor subassembly in Thailand. In addition, a series of plastic mold injection operations were also performed in Thailand, along with soldering and press-fitting, to produce other key components, including the inner support and reservoir. These

3 subassemblies and other components were then combined to assemble the finished automotive fuel pump through a series of 18 additional steps in Thailand. Accordingly, CBP found that the various non-Thai components lost their individual identities and became an integral part of a new article, with a new name, character, and use.

With respect to the subject starter, many of the key subassemblies—namely, the armature, the field coil, and the solenoid—as well as assembly of the subassemblies into the final starter, occur in Malaysia. The armature and field coil, which are the most expensive components, are both key subassemblies of the starter, as these are the components that work together to power the starter motor by generating the necessary torque to turn the engine’s flywheel. Aside from the production of the of the armature, field coil, and solenoid in Malaysia, the assembly of the final starter consists of 43 discrete manufacturing steps. Moreover, the non-Malaysian components are insufficient on their own in providing functionality to the starter while the key subassemblies that are essential to the functionality of the starter are of Malaysian origin. When combined with the Malaysian origin subassemblies in Malaysia, the non-Malaysian components will lose their individual identities and become an integral part of the starter. Therefore, we find that the non-Malaysian components will be substantially transformed by the processing in Malaysia such that the country of origin of the finished starter will be Malaysia for duty purposes.

HOLDING:

The country of origin of the starter for duty purposes will be Malaysia.

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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