OT:RR:NC:N2:206
Heather Litman
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
707 Wilshire Blvd., Suite 4150 Los Angeles, CA 90017
RE: The country of origin of automotive radiators
Dear Ms. Litman:
In your letter dated January 6, 2025, you requested a country of origin ruling for purposes of applying trade remedies under Section 301, as amended, from China, on two lines of radiators, which you filed on behalf of REACH International, Inc.
The articles under consideration are Radiators With Oil Cooler, Model Numbers 1.41.13062.126 and 1.41.13204.126, Radiators Without Oil Cooler, Model Numbers 1.41.2370.126, 1.41.2423.126, and 1.41.2791.126, which are essential parts of a car’s cooling system. The radiators help regulate the engine's temperature and prevent damage. Radiators work by venting excess heat away from the engine through a process of releasing coolant and water, absorbing heat and then cooling it down with air from outside the vehicle. An automotive radiator is located under the hood and in front of the engine, with the coolant reservoir located nearby.
You state that the main parts of a radiator include the core, inlet and outlet tanks, and pressure cap. The core is the largest part of the radiator. It features the metal cooling fins that help vent the air. The core is where hot liquid releases heat and gets cooled before being sent through the process again. The inlet and outlet tanks are where coolant flows in and out of the radiator and are located in the radiator head. Hot liquid flows from the engine through the inlet tank, and once it is cooled, goes out through the outlet tank and back into the engine. The pressure cap works to help seal the cooling system so it can remain pressurized. Coolant in the radiator is pressurized to prevent the coolant from boiling. It also keeps the system more efficient.
According to the information you provided, the tank, gasket, head plate, flat aluminum material, side plate, other accessories, and the oil coolant, when applicable, are imported into Thailand from China. In Thailand, the Chinese-origin raw aluminum is folded, rolled, and cut to length to form welded flat tubes in a special welding tube machine. To manufacture the fins, the Chinese origin raw aluminum is sent through another machine where it is formed, compressed, and cut to length to create the fins. The radiator core is fabricated by assembling the welded flat tubes and cooling fins in alternating layers. Once the desired length of the core is achieved, header plates and side plates are joined tightly to the core. After fabrication, the radiator core must undergo a brazing process to ensure that all joints and spaces are tightened together and sealed to prevent any fluid leaks.
Aluminum brazing is a process of joining two or more aluminum pieces together using a filler metal that melts at a lower temperature than the base metal. The filler metal is typically made of aluminum-silicon alloys, which have a lower melting point than the base metal. The process involves heating the aluminum pieces to a temperature above the melting point of the filler metal but below the melting point of the base metal. The molten filler metal flows into the joint and forms a bond between the two pieces of aluminum. Once the radiator core is assembled and brazed, an initial leak test is conducted. Once the radiator core is manufactured, inlet/outlet tanks, gaskets, oil coolers (if applicable), washers, and other components are permanently joined to the radiator core through a complex “crimping” process that is akin to soldering/welding and requires specialized machinery. “Crimping,” sometimes referred to as a “cold weld,” creates an air-tight seal between the parts being connected, resulting in long-lasting, reliable connections that are protected from environmental conditions such as moisture, sand, dust, and dirt. When done correctly, “crimping” is more consistent than soldering/welding. Once all of these other components are joined to the radiator core, a final leak test is performed. Thereafter, accessories, such as the pressure cap, and labeling are added and the finished radiators are packed for shipping.
When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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).
It appears that CBP has already ruled on a similar scenario in ruling N338204, dated March 1, 2024, where Chinese origin raw materials were imported into Mexico to produce an automotive radiator. In that ruling we stated, “…the main components of the radiator are the aluminum core and the up/bottom tanks. Although the processes in Mexico may appear to not be overly complex, the raw aluminum from China is nonetheless substantially transformed into identifiable components of a radiator in Mexico. As a result, we have a Mexican radiator core and Chinese up/bottom tanks. Since the final assembly of all components into a complete aluminum radiator occurs in Mexico, it is the opinion of this office that the country of origin of the aluminum radiator will be Mexico…”
In the instant case, the substantial transformation of the flat raw aluminum from China into radiator cores occurs in Thailand and the final assembly of all components is also done in Thailand. As a result, the country of origin for the Radiators With Oil Cooler, Model Numbers 1.41.13062.126 and 1.41.13204.126, Radiators Without Oil Cooler, Model Numbers 1.41.2370.126, 1.41.2423.126, and 1.41.2791.126, will be Thailand and trade remedies under Section 301, as amended, from China will not apply.
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