OT:RR:NC:N2:206
Kyl Kirby
Kyl J. Kirby, Attorney and Counselor at Law, P.C.
1400 Lipscomb Street
Fort Worth, TX 76104
RE: The country of origin of brake calipers
Dear Mr. Kirby:
In your letter dated July 14, 2025, you requested a country of origin ruling on brake calipers for marking
purposes and for purposes of applying current trade remedies, which you filed on behalf of your client, Brake
Parts Inc. LLC.
The articles under consideration have been identified as brake calipers, part numbers RC12363P,
FRC11022NP, and FRC11021NP. The brake calipers are crucial components of a disc brake system in a
vehicle. Their primary function is to apply pressure to the brake pads, which in turn creates friction against
the brake rotor or disc. This friction slows down or stops the rotation of the wheel, allowing the vehicle to
come to a controlled stop. The brake calipers fit over the rotors like a clamp. The brake calipers houses the
brake pads (metal plates bonded with friction material) and contain pistons or cylinders that push the pads
against the rotor when the brakes are applied. When the driver presses the brake pedal, hydraulic pressure is
generated, which is transmitted to the calipers through brake lines or hoses. This pressure causes the pistons
inside the calipers to move, pushing the brake pads against the rotor.
You presented three scenarios for each brake caliper at issue. In the first scenario, brake caliper RC12363P is
assembled in Mexico using a brake caliper core of the United States origin that was remanufactured in
Mexico, and brake pads from Mexico.
In the second scenario, brake caliper FRC11022NP is assembled in Mexico using a new caliper core from
China and brake pads from Mexico.
In the third scenario, brake caliper FRC11021NP is assembled in Mexico using a new caliper from China and
brake pads from India.
Marking:
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.; however, for a good of a NAFTA or
USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102
Rules) will determine the country of origin.
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other
USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in
sections 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect
to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining
the country of origin of a good for marking purposes, with the exception of textile and apparel goods which
are subject to the provisions of 19 CFR 102.21. See 19 CFR 102.11.
Applied in sequential order, 19 CFR 102.11(a) provides that the country of origin of a good is the country in
which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff
classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and
all other applicable requirements of these rules are satisfied.
The brake calipers in all three scenarios are neither “wholly obtained or produced” nor “produced exclusively
from domestic materials.” Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of
origin of the brake calipers, and paragraph (a)(3) must be applied next to determine the origin of the finished
article. The brake caliper is classified in subheading 8708.30, Harmonized Tariff Schedule of the United
States (HTSUS). The tariff shift requirement in Part 102.20 for the brake calipers at issue states:
A change to mounted brake linings and pads from any other heading, except from brake linings and
pads of subheading 6813.20 or 6813.81; or
A change to other brakes or servo-brakes or parts thereof from any other heading.
Both, caliper cores and brake pads are classified in heading 8708. Thus, the tariff shift is not met. As a result,
Part 102.11(a) does not apply.
Section 102.11(b) states, in relevant part:
Except for a good that is specifically described in the Harmonized System as a set, or is classified as a
set pursuant to General Rule of Interpretation [("GRI")] 3, where the country of origin cannot be
determined under paragraph (a) of this section:
The country of origin of the good is the country or countries of origin of the single material
that imparts the essential character to the good….
In determining the "essential character" of the finished good, Section 102.18(b)(1) provides, in relevant part:
(b) (1) For purposes of identifying the material that imparts the essential character to a good under
Part 102.11, the only materials that shall be taken into consideration are those domestic or foreign
materials that are classified in a tariff provision from which a change in tariff classification is not
allowed under Part 102.20 specific rule or other requirements applicable to the good … (ii) Materials
that may be considered include materials produced by the producer of the good and incorporated in
the good. For example, if a producer of a good purchases raw materials and converts those raw
materials into a component that is incorporated in the good, that component is a material that may be
considered for purposes of identifying the materials that impart the essential character to the good,
provided that the component is classified in a tariff provision from which a change in tariff
classification is not allowed under the specific rule…
Here, we have the caliper cores and brake pads from multiple countries classified in a tariff provision, which
a change in tariff classification is not allowed. Thus, we must apply 102.18(b)(2), which states:
(b) (2) For purposes of determining which one of two or more materials described in paragraph (b)(1)
of this section imparts the essential character to a good under Part 102.11, various factors may be
examined depending upon the type of good involved. These factors include, but are not limited to, the
following:
(i) The nature of each material, such as its bulk, quantity, weight or value; and
(ii) The role of each material in relation to the use of the good.
According to the bill of materials (BOM) supplied, the caliper cores are the bulkiest components and have the
highest value compared to the brake pads. However, in NY Ruling N317253, dated February 23, 2021, we
stated that “[s]ince the brake pads cause the rotors to stop spinning by friction, the most essential component
of… calipers is the brake pad assembly.” Therefore, Part 102.18(b)(2) does not apply.
Section 102.11(c) states:
Where the country of origin cannot be determined under paragraph (a) or (b) of this section and the
good is specifically described in the Harmonized System as a set or mixture, or classified as a set,
mixture or composite good pursuant to General Rule of Interpretation 3, the country of origin of the
good is the country or countries of origin of all materials that merit equal consideration for
determining the essential character of the good.
The brake calipers are not sets, nor composite goods pursuant to GRI 3. They are parts of braking system
classifiable in a single subheading, pursuant to GRI 1. As a result, 102.11(c) does not apply.
Section 102.11(d) states:
Where the country of origin of a good cannot be determined under paragraph (a), (b), or (c) of this
section, the country of origin of the good shall be determined as follows:
(1) If the good was produced only as a result of minor processing, the country of origin of the
good is the country or countries of origin of each material that merits equal consideration for
determining the essential character of the good; or
(2) If the good was produced by simple assembly and the assembled parts that merit equal
consideration for determining the essential character of the good are from the same country,
the country of origin of the good is the country of origin of those parts; or
(3) If the country of origin of the good cannot be determined under paragraph (d)1 or (d)2 of
this section, the country of origin of the good is the last country in which the good underwent
production.
The production of the brake calipers in Mexico involved combining multiple components of different origins
to make a new product. This process was more than a “minor processing” operation or a “simple assembly.”
See 19 C.F.R. §102.1(m) and (o). Therefore, section 102.11(d)(1) or (2) do not apply. Accordingly, the
country of origin of the brake calipers, part numbers RC12363P, FRC11022NP, and FRC11021NP for
marking purposes is Mexico, the last country in which the brake calipers underwent production.
Trade Remedies:
When determining the country of origin for purposes of applying current trade remedies under Section 301
and International Emergency Economic Powers Act (IEEPA) additional duties, the substantial transformation
analysis is applicable. See, e.g., Headquarters 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).
As previously stated, this office already reviewed a similar scenario in N317253. We stated in that ruling that
the assembly process of the brake calipers with the brake pads was not complex enough to render a
substantial transformation. Furthermore, it was the brake pads that imparted the character of the entire brake
caliper assembly. Similarly in this case, it is the brake pads that are the most essential components, and
therefore, the country of origin for the brake caliper RC12363P and FRC11021NP will be Mexico, and brake
caliper FRC11021NP will be India for purposes of applying IEEPA. Accordingly, Section 301 duties will not
apply to any of the subject brake calipers.
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)
James Forkan
Acting Director
National Commodity Specialist Division