CLA-2-82:OT:RR:NC:N1:118
Kevin Williams
Clark Hill PLC
130 E Randolph Street
Chicago, IL 60601
RE: The country of origin of tire and wheel assemblies
Dear Mr. Williams:
In your letter dated February 26, 2021, you requested a country of origin ruling on behalf of your client, Kubota Manufacturing of America Corporation.
Your request concerns the following five pneumatic tire and steel wheel assemblies:
11 x 4-5 pneumatic tire mounted on 5 x 2.5 steel wheel (front assembly)
22 x 10-14 pneumatic tire mounted on 14 x 8 steel wheel (rear assembly)
23 x 10-14 pneumatic tire mounted on 14 x 8 steel wheel (rear assembly)
24 x 10-14 pneumatic tire mounted on 14 x 8 steel wheel (rear assembly)
25 x 10-14 pneumatic tire mounted on 14 x 8 steel wheel (rear assembly)
You have stated that the steel wheels will be made in China and shipped to Taiwan. In Taiwan, the rear steel wheels will be assembled with a tire and valve of Taiwanese origin. The front steel wheels will be assembled in Taiwan using a tire and valve of Taiwanese origin, and a bearing from Japan. The fully constructed tire and wheel assemblies will then be shipped to the United States for installation on four models of Kubota zero-turn mowers. The assembly process in Taiwan involves the following steps:
Inspect the wheel upon arrival in Taiwan
Press the bearing into the center hub of the front wheel
Assemble the air valve to the wheel
Lubricate the bead of the rubber tire
Mount the tire on the wheel
Inflate the tire to the correct pressure
Conduct bubble check to confirm that tire bead is fully seated
Check the tire pressure after 48 hours to confirm that there are no leaks
With regard to your request for the appropriate country of origin of the tire and wheel assemblies, 19 C.F.R. § 134.1(b) provides in pertinent part as follows:
Country of origin means 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 and 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 order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors are considered in order to conclude whether a product with a new name, character, and use has been produced. These factors include the components used to create the product and manufacturing processes that these components undergo. No one factor is decisive, and minimal processing and/or assembly operations will generally not result in a substantial transformation.
Regarding the country of origin of the subject tire and wheel assemblies, we note that the assembly operations performed in Taiwan are not complex. Further, it is the opinion of this office that neither the pneumatic tire nor the steel wheel described herein is dispositive in determining the essence of a fully constructed tire and wheel assemble. In our view, the pneumatic tire and steel wheel merit equal consideration, yet neither stands out predominantly over the other.
However, we do note that the assembly operation, irrespective of complexity, occurs in Taiwan and constitutes the bulk of the work process as well as the majority of the manufacturing costs. Consideration must also be given to the fact that the pneumatic tires in all five assemblies are of Taiwanese origin. As a result, we find that the five pneumatic tire and steel wheel assemblies described in your request are considered products of Taiwan for origin and marking purposes at the time of importation into the United States.
This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division