CLA-2:84:OT:RR:NC:N1:102
Matthew L. Fields
Autolin
16650 Northeast 79th Street Redmond, WA 98052
RE: The country of origin of a wheel hub assembly
Dear Mr. Fields:
In your letter dated March 25, 2024, you requested a country of origin ruling on behalf of New Torch Technology Thailand. Technical information was provided with your submission.
The product under consideration is a Double Flanged Wheel Hub Assembly with Ball Bearing, item number G3-132. The ball bearing wheel hub assembly will be entered without any additional features, such as anti-lock braking components and splining. The wheel hub bearing assembly primarily consists of caged balls, an inner ring and inner and outer flanges. The flanges directly mate with the suspension and other vehicle components.
In your letter you suggest the wheel hub assembly is classified within subheading 8482.10.5016, Harmonized Tariff Schedule of the United States, HTSUS, which provides for Ball or roller bearings, and parts thereof: Other: Other: Angular Contact Bearings: Wheel Hub Bearing Units: Flanged. We agree. The rate of duty is 9 percent ad valorem.
Prior to the final assembly, which occurs in Thailand, the inner ring, and the inner and outer flanges undergo various processes.
In Thailand, the raceway and inner diameter of the inner ring, which is of Thai origin, are finely grinded. Afterwards, the raceway is grinded super finely.
In Thailand, the inner flange, which is of Thai origin, is subject to fine turning, drilling, chamfering and tapping of drill holes, heat treatment processes (quenching and tempering), fine turning, and rough grinding of the raceway and outer diameter. Afterwards, the raceway is subject to super fine grinding.
In Thailand, the outer flange, which is of Thai origin, is subject to fine turning of the inner and outer diameters. Followed by the drilling, chamfering and tapping of drill holes. The outer flange then undergoes heat treatment processes (quenching and tempering) and the raceway and inner diameter are fine turned. The flange undergoes additional drilling, chamfering, and tapping. The raceway and inner diameter are then finely grinded. Afterwards, the raceway is subject to super fine grinding.
The final assembly, which occurs in Thailand, begins by demagnetizing and cleaning the components using an ultrasonic cleaner. The inner flange bolts are press fit into the inner flange. Grease is applied. Steel balls of Chinese origin are manually placed into two Chinese cages and a Chinese seal ring is pressed onto the inner diameter of the outer flange using a booster. Using a press-fitting machine, the inner and outer flanges and the caged rolling elements are combined, followed with the inner ring being pressed and locked in place. The upper end of the inner flange's shaft diameter is rotated. Next, the sealing ring is pressed into the inner diameter of the outer flange using a boost machine. Five bolts are then added. Afterwards, the wheel hub assembly is laser marked and anti-rust oil is manually 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 flanges, the inner ring and the balls to the cages in Thailand would not entail the type of processing required to meet the substantial transformation test. The assembly of the ball bearing and the ball bearing to the inner and outer flange 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 inner ring and the outer flange, which are the races with precision raceways, the essence of anti-friction bearings, are considered when determining the country of origin of the ball bearing.
This rationale is noted in Headquarters (HQ) ruling 562528, dated December 10, 2002, which discusses the country of origin of a ball bearing. These rulings state that the fundamental character and use of the bearings is determined after the steel rings are ground and finished into races with precision raceways and they are no longer considered steel rings. This rational is also discussed in HQ rulings 731968, March 19, 1990, and 731969, dated March 19, 1900, where rings are heat treated and polished in one country and the races are created, and superfinishing occurs in the second country. In these rulings, the country of origin of the bearings was determined to be the country in which the rings become races with precision raceways.
Here, the inner ring, which is the inner race of the bearing, and the outer flange, which is the outer race of the bearing, are formed in Thailand. Accordingly, the country of origin of the Double Flanged Wheel Hub Assembly with Ball Bearing, item number G3-132, for marking purposes is Thailand. As the country of origin of the Double Flanged Wheel Hub Assembly with Ball Bearing, item number G3-132, is Thailand, the Section 301 Trade Remedy duties are not applicable to the wheel hub assembly 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