OT:RR:NC:N2:220
Robbie Dickson
Firgelli Automation Inc.
1350 Slater Road, Whatcom County
Ferndale, Washington 98248
RE: The country of origin of an electrical actuator
Dear Mr. Dickson:
In your letter dated April 30, 2025, you requested a country of origin and marking ruling.
The merchandise under consideration is identified as a 12 VDC brushed electric actuator that consists of the
DC motor, the gearbox assembly, the screw drive, the housings, the sensor printed circuit board assembly
(PCBA), and various electrical apparatus, such as limit switches, wire harnesses, a potentiometer, etc.
In your submission, you state that all the components that make up the actuator, apart from the electrical
apparatus, are produced in China. You describe the actuator as being assembled in Canada by fastening the
12 VDC motor to the gearbox assembly, installing and/or inserting the various components together and
fastening with screws. The electrical apparatus is soldered, and wires are secured to the motor actuator.
Lastly, the motors are tested, lubricated, and packaged for shipping.
We note that the country of origin marking analyses for goods produced in Canada require the classification
of the subject actuator at the 4-digit level. Based on the information provided, the applicable heading for the
electric actuator will be 8501, Harmonized Tariff Schedule of the United States (HTSUS), which provides
for: “Electric motors and generators”.
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) (Texas Instruments). 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) (National Hand Tool).
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).
Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” 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 to render such other
country the “country of origin” within the meaning of the marking laws and regulations.
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other
USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in
sections 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect
to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining
the country of origin of a good for marking purposes, apart from textile and apparel goods which are subject
to the provisions of 19 CFR 102.21. See 19 CFR 102.11.
Applied in sequential order, 19 CFR 102.11(a) provides that the country of origin of a good is the country in
which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff
classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and
all other applicable requirements of these rules are satisfied.
Since the subject merchandise is neither “wholly obtained or produced” nor “produced exclusively from
domestic materials”, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the
motor actuator, and paragraph (a)(3) must be applied to determine the origin of the finished article. As the
motor is classified under heading 8501, HTSUS, the applicable tariff shift requirement in Part 102.20 for the
assemblies under consideration states, in pertinent part:
A change to heading 8501 from any other heading.
The motor actuator under consideration herein is primarily made up of a foreign components. Of
significance here is the Chinese electric motor that is classifiable under heading 8501, HTSUS. As a result of
the foreign status of the electric motor, the Part 102.20 tariff shift requirement is not met and the origin of the
motor actuator will be determined under Part 102.11(c), which states, in pertinent part:
[T]he country of origin of the good is the country or countries of origin of all materials that merit
equal consideration for determining the essential character of the good.
It is the decision of this office that the electric motor is the principal component of the subject motor actuator
assembly, while the gearbox and actuator do not merit equal consideration in determining the country of
origin of the good.
Furthermore, the attaching of a gearbox to the motor’s output by inserting screw drive components, etc.,
which is largely described as “inserting”, “attaching”, and “fastening”, is minor assembly where the electric
motor is not substantially transformed as a result of the work performed in Canada. See Texas Instruments
and National Hand Tool. As a result, at the time of importation into the United States the country of origin of
the 12 VDC brushed electric actuator will be China for origin and marking purposes.
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 the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. If 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 Karl Moosbrugger at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division