OT:RR:NC:N1:102
Leo Hu
Shanghai TeDu Mechanical and Electrical Co., Ltd.
No. 36, Wujiang Road
Wuyi County, Wuyi 321200
China
RE: The country of origin of an end housing (gearbox)
Dear Mr. Hu:
In your letter dated March 18, 2025, you request a country of origin ruling on an article previously ruled upon
in New York Ruling Letter (NY) N342131, dated September 16, 2024. You explain that certain details
regarding the assembly process have changed. Pictures and a description of the manufacturing processes were
provided with your submission.
The article at issue is an aluminum end housing, part number 99524, also described in NY N342131 as a part
of a gearbox. The end housing, which features teeth, is a component of a gearbox that transmits rotary
movement. The gearbox allows a drum to turn in a forward or reverse motion, which in turn allows a cable
that is wrapped around a drum to be extended and retracted.
In regard to origin, you explain the end housing is cast in Thailand. Afterwards, the aluminum housing
featuring teeth is exported to China, where it is subject to polishing, lathing, painting, drilling and tapping
processes. The drilling process enlarges the two mounting holes, which were established during the casting
process. The tapping process creates the threading within the mounting holes.
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).
In viewing the illustrations submitted for the end housing, the inner profile of the housing features teeth that
will mesh with the teeth of other gearing prior to being exported from Thailand. In this condition, the end
housing casting is recognizable as an end housing for a gearbox. It has a pre-determined end use prior to
being subjected to the described finishing processes in China. As such, the processes completed in China do
not substantially transform the Thai produced casting. The end housing casting is not transformed in China
into a new and different article of commerce with a name, character, and use distinct from the article
exported from Thailand. Accordingly, the county of origin for the finished end housing, part number 99524,
is Thailand for the purpose of Section 301 Trade Remedies.
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