OT:RR:NC:N2:206
Matthew Fields
Autolin
16650 Northeast 79th Street Redmond, WA 98052
RE: The country of origin of a wheel hub unit
Dear Mr. Fields:
In your letter dated March 25, 2024, you requested a country of origin ruling on behalf of New Torch Technology Thailand.
The article under consideration is a Double Flanged Wheel Hub Assembly with Tapered Bearings and ABS Components Without Splining (Item Number G3-803). The wheel hub bearing unit consists of the inner and outer flanges, the gear ring rotating body, the ABS sensor components, and the sealing assembly. The magnetic steel suit of the ABS sensor is mounted on the gear ring rotary body. The rotating body of the gear rings are press fitted into the flanges along with the outer ring and seal. The flange end face has a drilled/machined hole where a bolt is inserted, allowing the entire assembly to be directly connected with the suspension, braking system, and hub. You state that the structure forms a new product: a long life, high reliability car hub bearing unit. It replaces the original car steering knuckles, hub, and bearing combination, integrating the three functions into one, reducing the volume and weight of the original structure, while also improving reliability.
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).
According to the cost breakdown document submitted with your request, the inner and outer flanges originate from Thailand, while the inner ring, dust cover, cage, gear ring, ABS speed sensor, ball, seal ring, bolt, grease, and packaging are of Chinese origin and imported to Thailand for further processing.
In Thailand, the Thai components and the Chinese inner ring undergo turning, grinding, and heat treatment. The rest of the Chinese components are assembled together with the inner and outer flanges and the inner ring without further processing. The assembly process does not appear to be complex. As a result, we must determine the character of the wheel hub assembly. Generally, the main function of a wheel hub assembly is to mount the wheel onto the axle and provide anti-friction. As such, this office finds that the character of the unit is the combination of the flanges and the inner race. It is our opinion that the Chinese inner ring is substantially transformed in Thailand based on the processes performed in Thailand. Consequently, the character of the wheel hub assembly is of Thai origin. As a result, the country of origin for the entire wheel hub assembly will be Thailand.
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 Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division