CLA-2-87:OT:RR:NC:N2:206

John Kenkel
International Trade Law Counselors, PLLC
8647 Richmond Hwy, Suite 623
Alexandria, VA 22309

RE: The tariff classification and country of origin of wheel hub assemblies

Dear Mr. Kenkel:

In your letter dated May 8, 2025, you requested a tariff classification and country of origin determination ruling, which you filed on behalf of your client, Viet Nam Haiya Technology Co., Ltd.

The items under consideration are 2nd Generation wheel hub assemblies containing ball or tapered roller bearings (Model Number F-616113-S and Model Number J-616046-S, respectively). The wheel hub assemblies are used in passenger vehicles. There are holes or bolts on the flange end face, which can be directly connected to the wheel rim and support the weight of the vehicle while enabling smooth rotation of the wheels. The assemblies are equipped with anti-lock braking system (ABS) rings. They are often integrated with ABS sensors in modern vehicles, which enhance braking precision and safety. The wheel hub assemblies reduce friction between moving parts of a vehicle, helping to improve fuel efficiency, reduce noise and extend the life of other components, ensuring optimal performance, safety, and comfort on the road.

The assemblies consist of an outer flange, inner rings, balls or rollers, cages, magnetic ring (ABS ring), and a seal ring. You state that the outer flanges and inner rings are imported from China and machined in Vietnam. The flanges are imported from China in an unfinished state and then fully processed by multiple precision turning operations, drilling or tapping, grinding, and super-finishing, to create a finished product. The inner rings also are fully processed from an unfinished state through multiple grinding, super-finishing, and other manufacturing processes to produce the precision raceways. The balls, rollers, cages, seals, and ABS rings are all made in China and imported to Vietnam for inspection and final assembly. In Vietnam, the components are assembled together using ball automatic assembly machines and hydraulic presses. After that, the wheel hub assemblies are inspected, laser marked, rust-proofed, tested, and packaged for shipment.

The applicable subheading for the 2nd Generation wheel hub assemblies, containing ball bearings (Model Number F-616113-S) and tapered roller bearings (Model Number J-616046-S) will be 8708.99.8180, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other: Other.” The general rate of duty will be 2.5 percent ad valorem.

Effective May 3, 2025, Presidential proclamation 10908 imposed additional tariffs on certain automobile parts. Additional duties on automobile parts of 25 percent are reflected in Chapter 99, heading 9903.94.05, as provided in subdivision (g) of U.S. note 33 to this subchapter. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.94.05, in addition to subheading 8708.99.8180, HTSUS, listed above.

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 8708.99.8180, HTSUS, listed above.

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/.

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).

Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. 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 in order to render such other country the “country of origin” within the meaning of the marking laws and regulations.

A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).

The final assembly of the Chinese components in the present case does not appear to be complex; however, the outer flange and inner ring become races with precision raceways in Vietnam. Pursuant to decisions in Headquarters Ruling Letters 731968, dated March 19, 1990, 731969, dated March 19, 1990, and 562528, dated December 10, 2002, a bearing undergoes substantial transformation in the country where rings become races with precision raceways. Although the wheel hub assemblies in the instant scenario are not mere bearings, their function is to reduce friction and to allow the wheel to be mounted on the axle. Since the outer flange and inner ring become races with precision raceways in Vietnam and drilling of the bolt holes also occurs in Vietnam, the country of origin of the wheel hub assemblies (Model Number F-616113-S and Model Number J-616046-S) will also be Vietnam for 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 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,

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