OT:RR:NC:N1:102
Mr. Jonathan M. Freed Trade Pacific PLLC 700 Pennsylvania Ave SE, Suite 500 Washington, DC 20003
RE: The country of origin of wheel bearings
Dear Mr. Freed:
In your letter dated March 20, 2024, you requested a country of origin ruling on wheel bearings on behalf of your client, Sling Automobile Bearing (Thailand) Co., Ltd. Descriptive information was provided with your submission.
The wheel bearings under consideration are double row ball bearings and tapered roller bearings. The anti-friction bearings are angular contact bearings used in the suspension and braking systems of motor vehicles. The bearings consist of inner and outer rings, roller elements, a cage, a seal ring, and dust covers.
The item numbers for the ball bearings are 5100#, 5110#, 5130#, 5140#, 5170#, B35, B38, B39, FW122, LM102910, VKBA6530, WB000043, WB000050, WB000053, WB000054, and WB000058.
The item numbers for the roller bearings are 511#, 513#, 516#, and 517#.
In your request for an origin determination, you state the process begins in Thailand by cutting pipe. The resulting pieces are then turned and afterwards treated using a heat treatment process. The rings then undergo grinding and super-fine grinding processes using a Computer Numerical Control (CNC) grinding machine. The inner diameter of the inner ring undergoes an additional grinding process. The grinding processes form the raceways of the inner and outer races. The completed races are cleaned and inspected.
The assembly process of the bearings occurs in Thailand with the installation of roller elements into two cages, which are of Chinese origin. The cages with the roller elements are then installed into one outer ring and two inner rings. Each bearing is then cleaned, inspected, and grease is applied. Next, Chinese seal rings and a dust cover are installed. Afterwards, the bearings are laser marked and anti-rust spray is applied. Inspections are conducted as required.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article.
The "country of origin" is defined in 19 CFR 134.1(b) 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 this part."
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, 69 C.C.P.A. 151 (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).
In the subject scenario, the assembly of the inner and outer races, the retaining cages, and balls or rollers in Thailand would not entail the type of processing required to meet the substantial transformation test. The assembly of the ball and roller bearings is considered simple assembly, and the Chinese components are not substantially transformed by the assembly operations that occur in Thailand. Instead, the country of origin of the races, which are the essence of anti-friction bearings, are considered when determining the country of origin of the ball and roller bearings. In this instance, the inner and outer races of both types of bearings are formed in Thailand. Accordingly, the country of origin of the subject bearings for marking purposes is Thailand. As the country of origin of the wheel bearings is Thailand, the Section 301 Trade Remedy duties are not applicable to the wheel bearings under consideration.
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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division