CLA-2-84:OT:RR:NC:N1:102
Jeffrey Hopkins
Bray International Inc.
13333 Westland East Blvd.
Houston, TX 77041
RE: The classification and country of origin of worm gear operators
Dear Mr. Hopkins:
In your letter dated May 12, 2025, you requested a classification and country of origin ruling for worm gear
operators.
The items under consideration are referred to as S05 worm gear operators. The operators consist of a
handwheel joined to a housing that encases a worm gear, a segment, bearings, O-rings, a cover plate, and a
declutch cam and lever. Once a worm gear operator is joined to a valve, the user engages the declutch lever
to connect the worm gear to the segment. The handwheel is then rotated, which causes the teeth of the worm
and the segment to mesh, allowing the torque needed to open and close the valve to be amplified.
The applicable subheading for the S05 worm gear operators will be 8483.40.9000, Harmonized Tariff
Schedule of the United States (HTSUS), which provides for Transmission shafts (including camshafts and
crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball
or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys,
including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: Gears and
gearing, other than toothed wheels, chain sprockets and other transmission elements entered separately; ball
or roller screws; gear boxes and other speed changers, including torque converters: Gears and gearing, other
than toothed wheels, chain sprockets and other transmission elements entered separately. The general rate of
duty is 2.5 percent ad valorem.
With respect to the origin of the worm gear operators, the final assembly for the three scenarios occurs in
Malaysia. The components in the three scenarios are sourced from China, except for the worm gear in
scenario two and the segment in scenario three. These components are sourced from Malaysia.
The final assembly, which consists of the same processes for the three scenarios, begins by applying grease to
O-rings used on a segment, a worm gear and a shaft. A segment is then inserted into a worm gear operator,
and afterwards, the O-rings used with the shaft are installed. Next, the bearings and the O-rings are installed
into the handle housings, which are subsequently installed into the housing using retainer clips. The input
shaft is then inserted into the worm gear operator housing and through the worm gear. After the input shaft
hole is aligned to the worm gear hole, a spring pin is hammered through the aligned holes of the worm gear
and the input shaft. Next, a handle housing is connected to the handle grip using fasteners and two handle
stops are installed onto the housing. Lastly, a gasket and a cover plate are installed, and bolts are used to
secure the components in place. Afterwards, grease is applied, and the input shaft is turned back and forth. As
the worm gear is positioned open, adjustments are made.
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 (“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).
CBP has held that whether an assembly process is sufficiently complex to rise to the level of a substantial
transformation is determined upon consideration of all the operations that occur within that country. Based
upon your description of the final assembly operations that occur in Malaysia, the steps do not appear
particularly complex. The steps mainly consist of inserting, placing and aligning a worm gear and a segment
that are either of Chinese or Malaysian origin to a handwheel, a shaft and additional components that are of
Chinese origin. Thus, based on the totality of the circumstances, the country of origin of the worm gear
operators, as described above for scenarios one, two, and three, will be China.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 8483.40.9000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad
valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01,
in addition to subheading 8483.40.9000, 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 8483.40.9000, 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
8483.40.9000, 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,
(for)
Steven A. Mack
Director
National Commodity Specialist Division