OT:RR:NC:N2:206

David Olave
Sandler, Travis & Rosenberg P.A.
1300 Pennsylvania Ave. NW.
Washington, DC 20004

RE: The country of origin of a brake pad

Dear Mr. Olave:

In your letter dated March 4, 2025, you requested a country of origin ruling on a brake pad, which you filed on behalf of your client, Jinli Friction Material (Cambodia).

The product under consideration is an aftermarket disc brake pad set (part no. FMSI: D1504-8705), which is used in passenger and heavy-duty motor vehicles. The set consists of two brake pads. Each brake pad includes an inner and an outer pad. The components of the brake pads include friction blocks made from friction material, backing plates, retainer/clips, which are a fixing device, and buffer layer/shims, which reduce noise /vibration and are attached to the back of the backing plate.

You state that the friction material, clips, shims, and backing plates are made in China and imported to Cambodia for further processing. In Cambodia, the backing plates are shot blasted and glue is applied on one side to prepare for the friction block. Next, the friction mixture is made by combining ingredients, such as barium sulfate, titanate, and graphite. The friction layer powder and under layer powder then undergo a cold mold, flattening and pressing process to complete the preforming process. Then, the preformed friction block and the backing plate are placed unto a hot mold to initiate the brake pad hot-pressing process, which combines the backing plate with the friction mold. The pad then undergoes a heat treatment, grinding process to flatten the surface of the friction material, then slotting and chamfering of the brake pads. Next, the pads are coated with a precise layer of plastic powder to the surface which, following baking, adheres to the brake pad surface to form a corrosion-resistant layer. Finally, the riveting/clip and shims are incorporated to the brake pads, inspected, shrink wrapped, and packaged for shipment to the United States.

When determining the country of origin, 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). In the instant case, the clips, shims, and backing plates from China are imported into Cambodia in their finished state and do not undergo a substantial transformation in Cambodia when assembled together into a brake pad set. However, the friction material undergoes mixing, molding, and pressing processes.

In ruling HQ 563486, we stated "we find that the finished ceiling tiles emerge as new and different articles in comparison to the non-NAFTA originating raw mineral wool from which they are made. The raw mineral wool loses its separate identity when subjected to operations such as dispersion in water, mixing with the other inputs, forming, drying, cutting, fissuring, punching and painting to produce the ceiling tiles. The tile manufacturing operations change the name, character and use of the imported mineral wool. The non-NAFTA originating dry mineral wool bales used in the manufacturing of the tiles lose their separate identity and become an integral part of a new article...The finished ceiling tiles are visibly different from the mineral wool raw material, acquiring new properties, a new name and use., i.e., acoustical ceiling tiles."

The friction material in the current merchandise is similarly transformed in Cambodia, as raw materials are mixed, molded, and pressed into friction material. As per the above, the raw materials lose their separate identity and become integral parts of a new article. We previously ruled that it is the friction material that imparts the character of the entire brake pad (see HQ 733979, dated June 17, 1991, NY J84298, dated May 22, 2003, N322988, dated December 29, 2021, N334204, and dated August 21, 2023.) Since the friction block is substantially transformed in Cambodia, we are of the opinion that the country of origin of the entire brake pad set (part no. FMSI: D1504-8705) will be Cambodia.

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