OT: RR: NC: N4:424
Mr. George Tuttle
Tuttle Law
3950 Civic Center Drive, Suite 310
San Rafael, CA 94901
RE: The Country of Origin of Skateboards assembled in China
Dear Mr. Tuttle:
This is in response to your letter dated December 3, 2021, requesting a country of origin determination on behalf of your client, Absolute Board Co. (ABC), of Oceanside, California. A description of the manufacturing processes was submitted for our review.
The merchandise under consideration concerns the Ookkie model skateboard imported by the ABC. The Ookkie skateboard has been specifically designed for children as young as 2 years old who are learning to skateboard. The product features removable parent-child handlebars which are designed to easily transform between 4 configurations and allow a young child to use the skateboard with or without assistance from an adult.
As stated in your submission, the components for the skateboard originate in various countries, primarily China and Taiwan. The processing steps involve the following: (1) skateboard deck, (2) trucks, which connect the wheels to the deck, (3) wheels, (4) handles, and (5) assembly of the components.
The Ookkie model features a deck made of polypropylene (plastic) and glass fiber. As noted in your request, the production of the Ookkie polypropylene skateboard deck takes place in Taiwan. You state the polypropylene and glass fiber raw materials will be imported from South Korea. The production process in Taiwan includes mixing the resin together with a pigment to form the polymer, which is then heated and injected into an injection mold made of steel. The polypropylene and glass fiber deck material are partially cooled, allowing the deck to be bent into the desired shape. To complete the solidifying step, the deck is immersed in water. With this model, it is not necessary to drill holes, as the holes are manufactured into the injection mold.
It is further noted that the manufacture of the skateboard trucks for the Ookkie model skateboard takes place in Taiwan. The hangers (axles) and baseplates for the trucks that connect the wheels to the skateboard deck will be made/cast in Taiwan. The production process includes casting aluminum ingots sourced from Taiwan and Dubai into steel molds to form the hangers (axles) and baseplates for the trucks that connect the wheels to the skateboard deck. A stub bolt is used as the “axle”, which is not part of the casting. The stub bolt axle is placed inside the hanger mold securely before the melted aluminum alloy is poured into the mold. The steel axle is then cast in place in the hanger. The cast truck parts are allowed to cool. Once cooled, the parts will be separated from the casting. Each part is heated to 896°F, held for one hour, then quenched. Then each part is ground, polished, and holes are drilled where needed.
You state that the skateboard wheels for the Ookkie skateboard are manufactured in China. The wheels are composed of two polyurethane components, isocyanate and resin, sourced from Taiwan or Japan. The materials are mixed with the appropriate pigment in metering machines. The polyurethane is then poured into the wheel molds and allowed to cure. Once cooled, the wheel surfaces and sides are shaped by lathe. The wheels are then fitted with bearings, bearing shields, rubber seals and retainer clips, which are sourced from China.
The child handlebar consists of two plastic components, the front handle piece, and the back piece which are joined together with 4 bolts. The child handlebar is composed of polypropylene and glass fiber materials, which are sourced from South Korea, and produced by injection molding. The production and assembly processes of the child handlebar components takes place in South Korea.
The parent handle shaft and T-bar are made of aluminum, the handle grip is made of polyurethane and all materials are sourced from China. The handle shaft is extruded, cut to length, and machined flush. The T-bar is also extruded, cut to length, machined flushed, and then welded to form a T shaped bar. The handle grip is injection molded in polyurethane and assembled with the T-bar. The production process of the parent handle shaft and T-bar takes place in China.
The final assembly of the skateboard deck with the finished wheel trucks and parent child handlebar will be performed in China. The assembly process includes mounting the completed wheel assemblies onto the hangers. The child handle is mounted to the parent handle, which is then mounted to the skateboard deck. The baseplate of the truck assembly is then attached to the deck with eight mounting bolts which are inserted through the skateboard deck, trucks, and secured in place with locknuts to complete the assembly.
With regard to your request for the appropriate country of origin of the aforementioned skateboards, 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.” A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use.
A “complex or meaningful” assembly operation may result in a substantial transformation while a “minimal, simple, assembly-type operation” ordinarily will not. In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character and use has been produced. No one factor is decisive, and assembly operations that are minimal will generally not result in a substantial transformation.
In this instance, it is this office’s opinion that the manufacturing operations of the skateboard components, specifically the skateboard decks and skateboard trucks, in Taiwan that provide the essence of these articles. These items are not substantially changed by either the addition of the Chinese components, or the minor assembly operations performed in China. Therefore, based on the facts presented in this case, the country of origin of the Ookkie skateboard is Taiwan for origin and marking purposes at time of importation into the United States.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 CFR 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 CFR 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 Roseanne Murphy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division