CLA-2-94:OT:RR:NC:N4:433
Steven Zisser
Zisser Customs Law Group
9355 Airway Road
San Diego, CA 92154
RE: The country of origin of aircraft seats.
Dear Mr. Zisser:
In your letter dated March 10, 2022, you requested a country of origin ruling on behalf of Recaro Aircraft Seating Americas, LLC. In lieu of samples, illustrative literature, product descriptions, and manufacturing processes were provided.
The items subject of this ruling request are constructed of foreign and domestically sourced raw materials. A description of the items follows.
Item 1, the “Model BL3710 Economy Short Range Seat,” is an upholstered, metal frame, single row 3 passenger economy class aircraft seat. The row of seats consists of four primary component groups that includes: the ultra structural parts and components, the structural parts and components, the cosmetic and comfort components, and the parts of general use.
Item 2, the “Model SL3710 Economy Short Range Seat,” is an upholstered, metal frame, single row 3 passenger economy class aircraft seat. The row of seats consists of four primary component groups that includes: the ultra structural parts and components, the structural parts and components, the cosmetic and comfort components, and the parts of general use.
The applicable subheading for the subject merchandise will be 9401.10.8000, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Seats of a kind used for aircraft: Other.” The rate of duty will be free.
Sourcing Scenario:
You request an origin determination of Germany for the BL3710 and the SL3710 single row 3 passenger economy class aircraft seats.
You state, “It is clear that the most important feature of an aircraft seat is the structural frame and its ability to withstand significant inertia forces. The frame represents the most significant portion of the technology, and it is the one single area where we find the most advancements, changes, and regulatory requirements set by the Federal Aviation Administration (FAA) and other equivalent aviation authorities. It also represents the most important factor for aircraft manufacturers as it must achieve both the lowest possible weight and passenger safety.” The subject aircraft seat components follows.
The “ultra-structural parts and components” are identified as “parts that provides the most structural support, primarily responsible for the strength and integrity of the seats, represent the largest surface area, the most value, and involve the most technology, research and development as well as representing a level of permanency.” A few of these components include: the cross strut, seat divider assembly, seat leg front, seat leg rear, structure armrest, structure backrest, and table arm assembly. For the BL3710 model, of the 98 ultra-structural components, 34 (47.32%) are domestically sourced in Germany. For the SL3710 model, of the 88 ultra-structural components, 17 (26.85%) are domestically sourced in Germany.
The “structural parts and components” are identified as “those parts that are generic, simple in nature, and are needed to meet durability, strength, and longevity criteria.” A few of these components include: the baggage sidebar, steward step assembly, headrest assembly, diaphragm backrest, and seat belt support. For the BL3710 model, of the 60 structural components, 32 (9.50%) are domestically sourced in Germany. For the SL3710 model, of the 82 structural components, 46 (8.62%) are domestically sourced in Germany.
The “cosmetic and comfort components” are identified as “those parts that deal with the physical or visual appearance of the product or deliver passenger comfort.” For the BL3710 model, of the 63 cosmetic and comfort components, 37 (7.43%) are domestically sourced in Germany. For the SL3710 model, of the 80 cosmetic and comfort components, 59 (16.15%) are domestically sourced in Germany.
The “parts of general use” are identified as “shelf type parts such as screws, nuts, washers, brackets, plugs.” For the BL3710 model, of the 99 general use components, 90 (3.04%) are domestically sourced in Germany. For the SL3710 model, of the 152 general use components, 69 (3.45%) are domestically sourced in Germany.
For seat model BL3710, of the 320 discrete material component parts 192 (67.3%) are of German origin. Additional components having a pre-determined end use and of Czech Republic, Thailand, France, Poland, Latvia, United Kingdom and United States foreign origin are shipped and exported to China. In China, the foreign components are assembled with additional Chinese domestic components to make a complete single row 3 passenger seat.
For seat model SL3710, of the 402 discrete material component parts 191 (55.07%) are of German origin. Additional components having a pre-determined end use and of Poland, Latvia, Romania, Thailand and United States foreign origin are shipped and exported to China. In China, the foreign components are assembled with additional Chinese domestic components to make a complete single row 3 passenger seat.
Country of Origin:
Section 134.1(b), Customs Regulations (19 C.F.R. § 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.” A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use. No one factor is decisive.
Per your submission, aircraft seat components are sourced from the Czech Republic, France, Germany, Latvia, Poland, Romania, Thailand, United Kingdom, and the United States. The components are shipped and exported to China. In China, additional domestic raw material components are locally sourced. In China, assembly of the single row 3 passenger seats involves the use of screwdrivers, jigs, and wrenches to perform attaching, connecting, screwing, and fastening operations. Workers assemble and torque to German design specification the seats as follows: 1.) the seat base assembly; 2.) the seat backrest assembly; 3.) the seat divider assembly; 4.) the armrest assembly; 5.) the rear cover assembly; 6.) the electronic component assembly; 7.) install grounding harnesses and USB cables; 8.) combine the seat base and backrest assemblies; 9.) install the table arm and backrest; 10.) assemble the foam seat base, seat backrest, and headrest; 11.) inspection, packaging, and exportation.
A predominant number of the German origin components are engineered, cast, and manufactured to shape according to the FAA and other equivalent aviation authorities prior to importation into China. The post-importation processing consisting primarily of assembly operations do not change the basic nature of the article; it represents different stages of the same product. The foreign components are clearly dedicated for use in making single row 3 passenger aircraft seats and cannot be used for any other purpose. In the instant case, the German origin components comprise the indispensable attribute that strongly marks or serves to distinguish the structure, core or condition of the assembled articles. In view of these facts, the country of origin for the BL3710 single row 3 passenger aircraft seat and the SL3710 single row 3 passenger aircraft seat is Germany.
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 on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. § 177).
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 19 C.F.R. § 177.9(b)(1). In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and you should resubmit for a new ruling in accordance with 19 C.F.R. § 177.2.
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, contact National Import Specialist Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division