OT:RR:NC:N1:121
Sydney Mintzer
Mayer Brown LLP
1999 K Street, NW
Washington, DC 20006
RE: The country of origin of engine and transmission mounts and the marking requirements and applicability of certain trade remedies under Section 301
Dear Mr. Mintzer:
In your letter dated December 9, 2021, you requested a country of origin ruling on behalf of your client, Perfection Hy-Test.
The articles under consideration are identified as motor vehicle engine or transmission mounts. These mounts function to form a connection between the engine or transmission unit and the frame of the vehicle via the mount centering pin. The mounts also function to isolate or dampen the vibrations of the engine or transmission unit.
The mounts typically consist of a centering pin, a rubber interface, and a metal bracket.
The centering pin functions to connect the engine or transmission unit to the frame bracket. You state, “the mount centering pin is the component that imparts the ultimate use, shape, form, and function to the completed product, typically is designed to connect to the engine-transmission unit, undergoes the most complex manufacturing process, and typically reflects the largest share of the component cost.” The centering pin is cast from aluminum, cast iron or forged steel. It then undergoes various forming, machining, grinding, coating, heat treating, welding, coating, and other finishing operations. The centering pin is manufactured primarily in Taiwan or Malaysia.
The rubber interface provides an insulating function. It is made of rubber of Malaysian origin that is then cut, heated, and molded to the specific shape in China.
The frame bracket functions to provide “the attachment geometry to bolt the mount to the vehicle frame.” It is either stamped from steel or molded from aluminum or cast iron. Thru-holes are created and other metal tubing or stamped metal may be welded or bolted to the bracket. You state the frame bracket is usually sourced in China with basic steel stampings, but in some cases, it is also manufactured in Taiwan or Malaysia.
The mount is assembled by press forcing the components together and bonding the centering pin and rubber interface together either by an adhesive or by mechanically pressing, snapping into, or bolting them into the frame bracket. The assembly process takes place in China. You indicate that in some instances the mount will also include additional low value and/or general use components such as gaskets, rivets, and plastic inserts.
You state in your request that the finished mount is classified in subheading 8302.30.3060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for base metal mountings suitable for motor vehicles; and parts thereof. You further state that the centering pin is also classified in subheading 8302.30.3060, HTSUS; the frame bracket is classified in either heading 8302.30.3060 or 8302.10.3000, which provides for hinges designed for motor vehicles; and the rubber molding is classified in subheading 4016.99.3000, HTSUS, which provides for other articles of vulcanized rubber other than hard rubber…vibration control goods of a kind used in the vehicles of headings 8701 through 8705.
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), in pertinent part, 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, 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, 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. However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article.
Regarding the country of origin and applicability of Section 301 remedies for the subject engine or transmission mounts, it is this office’s opinion that the centering pin is the dominant component of the finished engine or transmission mount. CBP has previously held that the centering pin imparts the essential character of an engine mount. See NY Ruling N304882, dated July 16, 2019. In this instance, the centering pin will be manufactured in either Taiwan or Malaysia. In China, the centering pin will be combined via press forcing with the rubber interface of Chinese origin, and frame bracket of Chinese, Taiwanese, or Malaysian origin. The centering pin and rubber interface will also be bonded together in China. The assembly of the components in China is a simple assembly and does not constitute a substantial transformation. Thus, we look to the component which is the essence of the good, which in this case we believe is the centering pin. In view of these facts, the country of origin of the subject engine or transmission mounts is the country in which the centering pin is manufactured and should be marked accordingly. In this case the country of origin would be either Taiwan or Malaysia. As a result, the subject engine and transmission mounts are not subject to the additional duties applicable to products of China under Section 301 of the Trade Act of 1974, as amended, upon 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 Jennifer Jameson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division