OT:RR:NC:N2:206
Nora Zeng
Vietnam Four Season Machinery Manufactory Company, Limited
Lot CN3D, Deep C 2B Industrial Park, Dinh Vu - Cat Hai Economic Zone
Hai Phong 180000
Vietnam
RE: The country of origin of CV axles
Dear Ms. Zeng:
In your letter dated June 25, 2025, you requested a country of origin ruling on constant velocity (CV) axles
for marking purposes.
The articles under consideration are CV Axles (Model Numbers FD-8095, HO-8243, GM-86033, and
TO-8240), which are used in passenger vehicles. The axles are components of a drivetrain, connecting the
differential and the wheels. It is responsible for power transfer from the transmission to the wheels while
allowing smooth rotation and flexibility during steering. The CV axles are built with CV joints with a
connecting center bar to connect both end joints. The joints make it possible to move the front wheels.
According to the bill of materials (BOM) submitted for all four models, each CV axle consists mainly of a
tripod, outboard CV joint (OBJ) assembly, lubricant, and CV boots from Vietnam, and inner ball joint (IBJ)
housing, center bar, clamps and circlips from China. The origin of other miscellaneous components varies in
each model.
You state that the production process of CV axles involves multiple stages of precision machining and
assembly in Vietnam. It begins with machining steps that require precision and advanced equipment. The
initial stage of hard turning and hard milling for both the ball cage and inner race involves machining
hardened materials while maintaining strict tolerances. Tool wear and stability are critical factors in ensuring
efficiency and accuracy, requiring CNC hard turning lathes and highspeed hard milling machines. Spherical
surface grinding for both the inner housing and inner ring require high level of precision due to the technical
design of the product. Similarly, ball track grinding for both components is crucial for proper ball movement
and overall CV axle performance. The process requires profile grinding machines.
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).
In the instant case, the processes in Vietnam described in your submission are only finishing operations.
Although some may appear complex, they do not physically alter the components rendering them a new
name, character, or use. As a result, no substantial transformation occurs in Vietnam. In ruling N336861,
dated December 18, 2023, CBP stated that the main components of the CV axle were the intermediate shaft
and CV joints. Here, we have the intermediate shaft (center bar) from China and OBJ from Vietnam.
Although the final assembly of components does not result in a substantial transformation, when considering
that the OBJ, which is one of the main components, is of Vietnamese origin and the cost of the Vietnamese
components and labor is over sixty (60) percent of the total cost of each axle, the country of origin of the CV
Axles (Model Numbers FD-8095, HO-8243, GM-86033, and TO-8240) will 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,
James Forkan
Acting Director
National Commodity Specialist Division