The country of origin of insulated electrical automobile harnesses

N300826 October 9, 2018 MAR-2 OT:RR:NC:N2:209 CATEGORY: MARKING Paul Vroman Radix dba DHL Global Forwarding 2660 20th St Port Huron, MI 48060 RE: The country of origin of insulated electrical automobile harnesses Dear Mr. Vroman: This is in response to your letter dated September 27, 2018, requesting a ruling on behalf of your client, Firstronic LLC, regarding the country of origin and marking requirements for an imported insulated electrical automobile cable. The items concerned are insulated wiring harnesses used in the rear tail lights of pick-up trucks (part #s 38-10577 and 38-10578). One is for the left-hand side and one is for the right-hand side of the truck. The two wiring harnesses are assembled in China, composed of South Korean and Japanese originating materials. The wiring harnesses consist of pin connector housings, pin retainers, connector housings, and terminals of Japanese origin, and insulated electrical wires and labels of Korean origin. The production process is as follows: 1. All of the materials to create the wire harnesses are gathered in Korea. 2. The materials are sent to China for assembly into the finished wire harness. 3. The assembly involves cutting the insulated wire to required lengths, installing the wire into the connector housings, and attaching retainer clips to secure it. 4. The wire harnesses are then shipped back to Korea for final inspection and pack-out. 5. The wire harnesses are shipped from Korea to the U.S.A. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article. The “country of origin” is defined in 19 CFR 134.1(b) 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 this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.” For tariff purposes, the courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). Based upon the facts presented and the pertinent authorities, it is the opinion of this office that the Korean-origin insulated electrical wire exported to China and processed in China as described above, is not substantially transformed in China into a new and different article of commerce with a name, character, and use distinct from the article exported. Therefore, the wiring harnesses are considered products of Korea for marking purposes at time of importation into the United States. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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, contact National Import Specialist Steven Pollichino at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division