OT:RR:NC:N1:103
Corey Butler
Warn Industries, Inc.
12900 SE Capps Road Clackamas, OR 97015
RE: The country of origin of an electric winch
Dear Mr. Butler:
In your letter dated February 26, 2025, you requested a country of origin ruling on a winch.
The subject winch is electrically powered and will be imported under model numbers EVO 8 and EVO 8-S. The EVO 8 is equipped with a stainless-steel rope while the EVO 8-S uses a synthetic rope. Both model numbers share the same specifications, including a maximum speed of 6 feet per minute at an 8000 pound capacity, and both are designed to be mounted on vehicles.
The electric winch is assembled in Thailand and requires three primary subassemblies. They are identified as a Chinese-origin gearbox subassembly, a Thai-origin electric motor assembly, and a Thai-origin drum assembly. While the subject winch is currently manufactured in China, you state that the manufacturing operations will move to Thailand by June of 2025 and that both the EVO 8 and EVO 8-S will be assembled using the same operational production steps.
The final assembly begins with preparing the motor assembly, a process that adds a waterproof ring, bearing, brake assembly, and brace shaft to the motor assembly. Following this, a worker seats a seal ring onto the Chinese gearbox before combining and fastening the gearbox to the motor assembly and drum assembly. The next series of steps are described as mounting a control box, connecting its wire harness, securing a rope to the barrel of the drum assembly, winding the rope around its circumference, and testing. Once the winch passes testing and inspection, it is packaged with various accessories including a handle remote, fairlead roller, and hook.
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 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).
CBP has held that whether an assembly process is sufficiently complex to rise to the level of a substantial transformation is determined upon consideration of all the operations that occur within that country. Based upon your description of the manufacturing operations, the operational steps do not appear particularly complex. They consist of assembling a Chinese gearbox and other accompanying components with the core subassemblies (i.e., electric motor assembly and drum assembly) that are produced entirely in Thailand. Thus, based on the totality of the circumstances, the country of origin of the electric winch (model numbers EVO 8 and EVO 8-S) as described above, will be 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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division