OT:RR:NC:N2:206
Matthew Fields
Autolin Inc
16650 NE 79th St, Suite 103 Redmond, WA 98052
RE: The country of origin of a single flange wheel hub unit
Dear Mr. Fields:
In your letter dated October 14, 2024, you requested a country of origin ruling on a single flange wheel hub unit, which you filed on behalf of your client, New Torch Technology Thailand Company Limited.
The item under consideration is a Single Flanged Wheel Hub Assembly, Without Anti-Lock Braking System (ABS) Components (G1-151), which is used in automotive applications. It consists of an inner flange and bolts. At one end the wheel hub connects the brake disc through bolts. The other end of the inner flange connects the bearing, steering knuckle, and CV joints, and thereby cooperates with the drive shaft through internal splines to drive the tire. It is also convenient for fixing the brake disc and removing the wheel. The flange’s structure enhances the structural strength of the bearing, provides axial support and prevents the bearing from axial movement during use. This type of single flanged wheel hub bearing is mostly used on non-driving wheels of vehicles.
You state that the inner flange is made entirely in Thailand, while the bolts and packaging are imported from China to Thailand for further processing.
Prior to the final assembly, the flange undergoes various processes. The inner flange is subject to fine turning, followed by the drilling, chamfering and tapping, heat treatment and quenching, fine turning after quenching, splining, rough grinding and overall diameter, and super fining raceway. Then, the inner flange is demagnetized and cleaned, the bolts are press fit, the anti-rust oil is applied on the product, and the wheel hub assembly is packaged and stored ready for import.
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).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) (Uniroyal). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, dated January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). In the Uniroyal case, the court held that an upper was not substantially transformed when attached to an outsole to form a shoe and that the upper was "the very essence of the completed shoe." 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 present case, this office finds that the press fitting of the bolts into the flange is a minor process. As a result, no substantial transformation occurs in Thailand and we need to determine the character of the wheel hub assembly. In our opinion, the character of this product is the Thai flange. Therefore, the country of origin of the single flanged wheel hub assembly, without ABS components (G1-151) is 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