CLA-2-94:OT:RR:NC:N5:433

Matthew Fields
Autolin
16650 Northeast 79th Street
Redmond, WA 98052

RE: The tariff classification and country of origin of a seat component.

Dear Mr. Fields:

In your letter dated May 7, 2025, you requested a binding tariff classification and country of origin ruling on behalf of Shuanglin Automotive (Thailand) Co. In lieu of samples, technical and illustrative literature, a product description, and manufacturing processes were provided.

The item that is the subject of this ruling request is constructed of foreign sourced raw materials. A description of the item immediately follows.

The “HDM-Horizontal Driving Mechanism (HDM)” is a seat component constructed of metal and plastic that will be permanently affixed to the metal frame of a motor vehicle seat. Documentation provided states “[T]he HDM work with a motor to drive gears or screw mechanisms, enabling horizontal adjustment of the seat position for optimal legroom and driving posture” and “[L]ow-noise design (e.g., nylon gears or damping materials) ensures smooth and quiet operation.” The assembly contains no upholstery, no cushions, no seat foundation, backrest, legs, or armrests. The assembly will be incorporated into the front driver and front passenger seats of motor vehicles according to Original Equipment Manufacturer (OEM) specifications.

The applicable subheading for the subject merchandise will be 9401.99.1085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Parts: Other: Of seats of a kind used for motor vehicles: Other.” The rate of duty will be free.

Sourcing Scenario:

The ruling request outlines an operation wherein the metal components (leadscrews, floating nuts, floating nut supports, lear nut supports, stop disks, metal worms) and the plastic components (nylon gears and damping materials) will be sourced in China. The seating components will be shipped to Thailand and no additional materials will be locally sourced. In Thailand, the metal and plastic components will be cleaned, inspected, assembled, measured, oiled, adjusted, tested, and laser marked. The seating components will then be packed, labeled, and exported to the United States.

In view of the documentation provided, the metal and plastic seat components will undergo cutting, grinding, riveting, knurling, threading, grooving, hole punching, and deburring using metal circular saw cutting machines, centerless grinding machines, thread rollers, precision numerically controlled lathes, steel ball riveting equipment, thread rollers, hydrocarbon cleaning equipment, automatic straightening machines, polishing machines, high speed thread processing equipment, and worm milling machines in China. The manufacturing operations for the HDM seat components that will occur in Thailand do not entail a physical change such as sand blasting, grinding, polishing, coating with anti-rust agents, heat treatment, die-cutting, bending, painting, powder coating, welding, soldering, fusing, machining, knurling, or crimping.

Country of Origin:

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).

The operations that will occur in Thailand consists primarily of assembly and do not change the basic nature of the article; it represents different stages of the same product. The assembly operations that will occur in Thailand do not result in a substantial transformation of a product having a new name, character or use. In view of these facts, the country of origin for the HDM will be China.

Trade Remedy:

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 9401.99.1085, HTSUS, listed above.

Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 9401.99.1085, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9401.99.1085, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 9401.99.1085, HTSUS, listed above.

The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/programs-administration/trade-remedies, respectively.

The tariffs and additional duties cited above are current as of this ruling’s issuance. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/.

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 Dharmendra Lilia at [email protected].
Sincerely,

(for)
Steven A. Mack
Director
National Commodity Specialist Division