OT:RR:NC:N2:206

Hanna Jung
Daeyu Customs Brokerage Corp.
166, Seonbugwangjang 1-ro, Danwon-gu, 304HO
Ansan-si, Gyeonggi-do, 153-67
South Korea

RE: The country of origin of an automotive airbag system.

Dear Ms. Jung:

In your letter dated August 18, 2025, you requested a country of origin ruling on an automotive airbag module, which you filed on behalf of your client, ZF Passive Safety Korea Co., Ltd.

The article under consideration is an automotive airbag system without illumination, Part Number A0055U2616J A, which is used in passenger vehicles. The airbag system is a critical component of the vehicle’s safety system. It rapidly deploys the airbag upon collision detection to protect occupants from impact. Its design ensures precise timing and reliable inflation to minimize injury.

The airbag system consists of an inflator from the United States, airbag cushion and plate from Thailand, hardware from China, and cover from Korea. The final assembly occurs in South Korea by inserting components into each other, attaching by screws, height inspection, horn test, and final inspection.

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 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 the present case, combining the components in South Korea does not result in a substantial transformation, since none of the components undergo any change. The end-use of each component is pre-determined at the time of arrival to South Korea for final assembly. Thus, we must establish the character of the airbag module. You assert that the inflator is the main component of the final product because it contains the chemical propellant that acts as the power source, generating gas through a rapid chemical reaction in order to inflate the airbag on command from the Airbag Control Unit. We disagree.

Although there is no dispute that the inflator is a critical component that inflates the airbag, it does not directly interact with the primary user (driver). It is the airbag when inflated that provides cushion and saves the driver from potential injuries upon collision. It is the sole component that bursts out of the steering wheel to serve its intended function of providing protection. As a result, it is the opinion of this office that the airbag is the character of the entire airbag module. Therefore, the country of origin of the airbag module without illumination, part number A0055U2616J A, will be Thailand for marking purposes and for purposes of applying current trade remedies and additional duties.

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)
Denise Faingar
Acting Director
National Commodity Specialist Division