OT:RR:NC:N1:102

Neil McIrvin
CSC Bearing North America
47800 Halyard Drive
Plymouth, MI 48170

RE: The country of origin of bearings

Dear Mr. McIrvin:

In your letter dated February 25, 2025, you requested a country of origin ruling on mechanical bearings for the purpose of marking and Section 301 Trade Remedies.

The bearings in question are referred to as tapered roller bearings and deep grooved ball bearings. The tapered roller bearings consist of tapered outer and inner races (cup and cone assembly) and tapered rollers that allow the bearing to withstand radial and axial loads. Part numbers for the tapered roller bearings are 32910, 32911, 32912, 32914, KLM503349/310, KLM501349/310, KLM301349/314, KM802048/011, KM86649/610, 32207, 32007, 32008, 32010, 30206, KHM518445/410, KHM212049/011, and KHM218248/210.

The deep grooved ball bearings consist of an inner and outer ring, and balls placed in a cage. These bearings facilitate motion, carry loads and reduce friction. Part numbers for the ball bearings are 6006, 6007, 6008, 61907, 61908, 61910, 61809, 6207, 62907, 6309, and QJ207.

You explain that prior to the final assembly of the tapered roller bearings, the inner and outer rings are forged from a steel rod in China. The forging process consists of cold-rolling and rough grinding processes. The forged rings are then turned and heat treated in either China or Japan. The rings are exported to Thailand, where the end faces and raceways of the inner and outer rings undergo grinding, honing and superfinishing processes, converting the rings into races. Automatic machines with computer numerical controls (CNC) complete the grinding and superfinishing processes.

During the final assembly of the tapered roller bearings, which occurs in Thailand, the inner and outer races are assembled to a cage with rollers to produce complete tapered roller bearings. For the ball bearings, you explain that all the processes occur in Thailand. The inner and outer rings are cut from raw material tube stock, turned and then heat treated in Thailand. Afterwards, the rings undergo grinding, honing, and superfinishing processes in Thailand. Automatic machines with CNC controls complete the grinding and superfinishing processes.

During the final assembly of the ball bearings, steel balls sourced from either Korea or China are inserted into a cage from India or China. The caged rollers are then pressed into the races to produce a finished ball bearing.

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 (HQ) ruling letter 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).

Additionally, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).

In this instance, the final assembly processes that occur for both bearings are rather simple and do not constitute a substantial transformation. Inserting and pressing components to each other is not considered to be complex. The final assembly processes performed in Thailand do not change the shape, character or predetermined use of the inputs. Instead, the country of origin of the races, which are the essence of anti-friction bearings, are considered when determining the country of origin of the ball and tapered roller bearings.

Headquarters ruling letter 562528, dated December 10, 2002, discusses the country of origin of a bearing, and states that the fundamental character and use of the bearings is determined after the steel rings are ground and finished into races with precision raceways and they are no longer considered steel rings. This rationale is also discussed in HQ rulings 731968, dated March 19, 1990, and 731969, dated March 19, 1990, where rings are heat treated and polished in one country and the races are created, and superfinishing occurs in the second country. In these rulings, the country of origin of the bearings was determined to be the country in which the rings become races with precision raceways.

Here, the inner and outer races of both types of bearings are formed in Thailand. Accordingly, the country of origin of the tapered roller bearings and the deep grooved ball bearings for the purpose of marking and Section 301 Trade Remedies 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 Sandra Martinez at [email protected].
Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division