CLA-2-94:OT:RR:NC:N4:433
HwaJeong Song
Global Concepts Korea, Inc.
68, Mayu-Ro
Siheung Si, 15111
South Korea
RE: The country of origin of seat components.
Dear Ms. Song:
In your letter dated August 11, 2022, you requested a binding country of origin ruling. 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. Descriptions of the items immediately follows.
Item 1, Model 1AG400, the “High Performance Assembly,” is a seat component comprised of a padded armrest affixed to a metal frame.
Item 2, Model 1AG4001, the “Height Adjustable Assembly,” is a seat component comprised of a padded armrest affixed to a metal frame.
Item 3, Model 1AG4002, the “Fixed Arm Assembly,” is a seat component comprised of a padded armrest affixed to a metal frame.
Models 1AG400, 1AG4001, and 1AG4002 will consist of both Left Hand (LH) and Right Hand (RH) units. When mounted to a seat frame, the metal shafts allows the armrest assemblies to extend and retract. Documentation provided states the armrest assemblies are for seats other than aircraft or motor vehicles. For each model of armrest, the dimensions approximate 16.69” in width, 13.54” in depth, and 2.76” in height.
The applicable subheading for the subject merchandise will be 9401.99.9081, 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: Parts: Other: Other: Other.” The rate of duty will be free.
Sourcing Scenario:
The ruling request outlines an operation where components for each armrest assembly are sourced from China. The components are shipped and exported to South Korea. In South Korea, plastic injection molded components, welded steel components, and pressed steel components are locally sourced. In South Korea, the domestic and foreign components are assembled to make LH and RH armrest assembly units.
For Model 1AG400, a single LH and RH armrest assembly unit is constructed of 55 total material build components that include: the arm post, structural stem, actuator link, wear plate, bearing wheel, arm cap, arm pad, friction plate, screws and additional assembly hardware. Of the 55 components, 53 (96.36%) are of South Korean origin. The Chinese components consists of 2 plastic injection molded parts.
For Model 1AG4001, a single LH and RH armrest assembly unit is constructed of 37 total material build components that include: the arm post, bracket carriage, structural stem, bearing wheel, arm cap, height adjustment lever, actuator link, compression post, and additional assembly hardware. Of the 37 components, 35 (94.59%) are of South Korean origin. The Chinese components consists of 2 plastic injection molded parts.
For Model 1AG4002, a single LH and RH armrest assembly unit is constructed of 25 total material build components that include: the arm post, bracket carriage, plug structural stem, carriage liner, bearing wheel, arm cap, and additional assembly hardware. Of the 25 components, 22 (88%) are of South Korean origin. The Chinese components consists of 2 plastic injection molded parts and 1 diecast aluminum part.
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.
In South Korea, assembly of each armrest assembly unit involves the use of screws, pop rivets, bolts, and air torque guns. Workers perform attaching, connecting, screwing, and fastening operations. Workers assemble and torque to design specification each unit as follows: 1.) for item 1, assembly occurs in 16 steps, a single unit is assembled in 6 minutes; 2.) for item 2, assembly occurs in 9 steps, a single unit is assembled in 3 minutes; 3.) for item 3, assembly occurs in 4 steps, a single unit is assembled in 3 minutes; 4.) inspection, packaging, and exportation.
While most of the armrest subassembly components are researched and designed in the United States, a predominant number of the armrest subassembly components are welded, pressed, injection molded, and pre-assembled in South Korea. Further, we find that the foreign Chinese material components and the domestic South Korean material components lose their identity during manufacture in South Korea and undergo a substantial transformation, thereby, taking on a new name, character, and identity. In the instant case, the South Korean 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 each armrest assembly unit is South Korea.
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