OT:RR:NC:N1:102
TARIFF NO: 8414.90.4190; 9903.01.25
Josefina Fustuq
Dearborn Tool & Mfg.
7749 S Grant St.
Burr Ridge, IL 60527
RE: The classification and country of origin of unfinished shafts
Dear Ms. Fustuq:
In your letter dated May 2, 2025, you requested a classification and country of origin ruling on unfinished
shafts.
The unfinished shaft is used in turbochargers, which are referred to as compressors. The aluminum alloy
shaft, which is powered by a linkage assembly, transfers torque and establishes the position between the
actuator and the adjustment ring, which adjusts the speed of the turbine wheel, and subsequently the
compressor wheel.
The applicable subheading for the unfinished shaft will be 8414.90.4190, Harmonized Tariff Schedule of the
United States (HTSUS), which provides for Air or vacuum pumps, air or other gas compressors and fans;
ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; gas-tight biological
safety cabinets, whether or not fitted with filters; parts thereof: Parts: Of compressors: Other: Other: Other:
Other. The general rate of duty is Free.
With respect to origin, raw material sourced from the United States is shipped to Brazil to be cast into shafts.
Once formed, the shaft castings are returned to the United States to be machined. Such machining processes
include the grinding of a slot, the grinding of the diameters, the turning of the individual shaft’s grooves and
shoulders, and tumbling. The machining processes will remove approximately 13 percent of each shaft’s
material.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional duties, 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, the unfinished shafts will have the shape and size of the finished shafts
prior to being exported from Brazil. In this condition, the unfinished shafts are recognizable as finished shafts
that will be used within a turbocharger. The shafts clearly have a pre-determined end use subsequent to the
casting process. As such, the U.S. ingots are substantially transformed into a new and different article of
commerce with a name, character, and use distinct from the ingots exported to Brazil. Accordingly, the
county of origin of the shafts is Brazil.
Effective April 5, 2025, Executive Orders implemented ?Reciprocal Tariffs. All imported merchandise must
be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading
8414.90.4190, HTSUS, listed above.
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