OT:RR:NC:N4:462
Robert Calandra
Attorney at Law
4 Henning Drive Fairfield, NJ 07004
RE: The country of origin of belt driven bicycles
Dear Mr. Calandra:
In your letter dated January 10, 2025, you requested a country of origin ruling on belt-driven bicycles, on behalf of your client, Priority Outdoor Products LLC.
The item under consideration has been identified as “Gates Carbon Drive belt-driven bicycles.” In your letter, you state that the bicycle frames will be made in Taiwan. The belt drive and transmission system will be made in the United States, the United Kingdom, Singapore, Japan or Malaysia. Lastly, the majority of small parts will be made in China, and China is where the final assembly will take place.
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 courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (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).
CBP has consistently found that the essence of a bicycle is its frame. For example, in HQ H302358, dated January 23, 2020, CBP determined that a bicycle manufactured in Taiwan with its frame sourced from China, and the remaining components sourced from Taiwan, China, Japan, and the United States, was a product of China. CBP stated that the frame was the most essential component of the bicycle as it imparts the overall shape, size, and character of the product. CBP further stated that the other parts of the bicycle lose their separate identity once they are attached to the frame and become a new article of commerce, the finished bicycle, with a new name, character, and use. See also New York Ruling Letter (“NY”) N302992, dated March 27, 2019; NY N295820, dated May 3, 2018; NY N292674, dated December 26, 2017; HQ H253522, dated February 5, 2015; and HQ 735368, dated June 30, 1994 (determining that the frame is the essence, essential character, or most significant or essential component of a bicycle).
In the instant case, we also find that the essence of the Gates Carbon Drive belt-driven bicycles is its frame. The bicycle does not lose its essential character when the frame is assembled together with the other parts from other countries. The frame gives the bike is overall shape, size, and character. In view of these facts, we find that the frame sourced from Tawan is the essence of the Gates Carbon Drive belt-driven bicycles, and the assembly operations of the various components in China does not result in a substantial transformation of the bicycle frames. Therefore, the country of origin of the subject bicycles is Taiwan.
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 Sandra Sary at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division