The country of origin of a doped and cathode material

N341585 August 14, 2024 OT:RR:NC:N3:139 CATEGORY: Origin Yoon-Sang Lee Kim & Chang 39, Sajik-ro 8-gil, Jongno-guSeoul 03170Korea RE:  The country of origin of a doped and cathode material Dear Mr. Lee: In your letter dated July 24, 2024, you requested a country of origin ruling on behalf of your client LG Chem Ltd., for a doped and coated cathode material that subsequent to its importation into the United States will eventually be part of the cathode of a lithium-ion battery that will be incorporated into an electric vehicle. The manufacturing process for the instant material involves different levels of production in different countries (China, Korea) related to the descriptive process described below. In China, an inorganic precursor compound, a lithium compound, and a dopant are mixed and then heated at a certain temperature for a certain amount of time. After this process is completed, the material is sent to Korea where it is doped and mixed with a different material than what was incorporated in China, is heated at a certain temperature for a certain amount of time, and then undergoes a washing and coating with boric acid. The boric acid coating process is also performed at a certain temperature for a certain period of time. After this process is completed, the material is sent to the United States for its ultimate incorporation into the lithium-ion battery. The applicable subheading for the doped and coated cathode material will be 3824.99.3900, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included: Other: Other: Other: Mixtures of two or more inorganic compounds: Other. The United States Trade Representative (“USTR”) has determined that an additional ad valorem duty of 25 percent will be imposed on certain Chinese imports pursuant to its authority under Section 301(b) of the Trade Act of 1974 (“Section 301”). The Section 301 measures apply to products of China enumerated in Section XXII, Chapter 99, Subchapter III, U.S. Note 20(e) and (f), HTSUS. Among the subheadings listed in U.S. Note 20(f) of Subchapter III, Chapter 99, HTSUS, is 3824.99.39, HTSUS. When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable.  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." 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, 69 C.C.P.A. 151 (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). When the Chinese made material is sent to Korea, it undergoes a change in chemical structure, formula, and CAS Number thereby resulting in a change in name and character. The Chinese made material is more of an intermediate product that can be modified to make a variety of cathode materials but is not particularly suitable for use in a lithium-ion battery for an automobile. The process performed in Korea changes the Chinese material to such a material that can be used for an electric vehicle’s lithium-ion battery, thereby resulting in a change in use. The country of origin of the doped and coated cathode material for purposes of Section 301 remedies will be Korea, and Section 301 duties will not apply. 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 John Bobel at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division