OT:RR:NC:N1:102
Jeffrey Richardson Miller
Miller, Canfield, Paddock and Stone, P.L.C.
840 W. Long Lake Road, Suite 150
Troy, MI 48098
RE: The country of origin of a first-generation wheel hub bearing
Dear Mr. Richardson:
In your letter dated May 16, 2025, on behalf of your client, APT Automotive Co., Ltd., you requested a
country of origin ruling on a first generation wheel hub bearing to apply current trade remedies and for
marking purposes.
The article under consideration is referred to as a first-generation wheel hub bearing, part number 970613.
The steel bearing consists of inner and outer races and two rows of caged balls. Once pressed into a housing
or a steering knuckle, the angular contact bearing minimizes friction within the suspension system of motor
vehicles.
With respect to origin, the final assembly occurs in Vietnam and consists of components sourced from China
and Vietnam. Prior to the final assembly, the end faces and outside diameters of the Chinese sourced inner
rings and the Vietnamese sourced outer rings undergo various grinding processes and superfinishing
processes, converting the rings into races. Throughout the grinding processes, the rings are turned,
demagnetized, and heat-treated.
During the final assembly, balls sourced from China are machine pressed into cages sourced from China and
then pressed into inner and outer races. Afterwards, seals sourced from Vietnam are machined into the
bearing and grease from Japan is incorporated into the bearing. Inspections are completed as required.
When determining the country of origin for purposes of applying current trade remedies and additional
duties, the substantial transformation analysis is applicable. See, e.g., Headquarters (HQ) 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).
Additionally, 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.
In this instance, the final assembly processes that occur in Vietnam would not entail the type of processing
required to meet the substantial transformation test. The assembly of the ball bearing is rather simple.
Pressing components to each other does not substantially transform the Chinese components. Instead, we
look to the country of origin of the inner and outer races, which CBP has concluded are the essence of
anti-friction bearings in HQ Ruling Letters 562528, dated December 10, 2002, 731968, dated March 19,
1990, and 731969, dated March 19, 1990. In these rulings, CBP explains that the fundamental character and
use of ball bearings is determined after the rings are ground and finished into races with precision raceways
and they are no longer considered rings. Here, the inner and the outer races with precision raceways are
formed in Vietnam. Accordingly, the country of origin of the first-generation wheel hub bearing is Vietnam
for the purpose of current trade remedies and marking.
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)
James Forkan
Acting Director
National Commodity Specialist Division