The country of origin of a hydraulic breaker

N361910June 11, 2026OT:RR:NC:N1:103
CATEGORY: OriginAlex Kim3PL Logistics2000 Center Dr.Hoffman Estates, IL 60192RE: The country of origin of a hydraulic breakerDear Mr. Kim:In your letter dated
May 29, 2026
, you requested a country of origin ruling on behalf of your client, SoosanCebotics Co., Ltd.The merchandise under consideration is identified as a hydraulic breaker, model number SB81E, and isdescribed as a tool attachment for excavators in the 18-to-26-ton carrier class. The attachment is designed tobreak and fracture concrete, rock, and similar materials using rapid mechanical impacts. It consists of twomain components, identified in your submission as a body assembly and a frame. The body assemblytransforms hydraulic energy into mechanical impact force. Its main components include valves, seals, apiston, a nitrogen gas accumulator, and a main structural enclosure, which consists of a front head, cylinder,and back head. The frame is a metal housing or enclosure that protects the body assembly.The frame is manufactured in South Korea. The process begins with cutting shapes from steel plates, bendingthe shapes into three-dimensional forms, and welding the forms into a box-style enclosure. Afterwards, theframe is shot blasted, deburred, and subjected to other mechanical finishing operations. The body assembly issourced from China as a finished assembly.Additional components are sourced domestically in Korea, including a cap, a wear plate, and upper and lowercushions, which are described as molded plastic components that support the body assembly inside the frame.The cap is a mounting bracket for connecting the breaker to the excavator arm. The wear plate is installedinside the frame to support the body and reduce wear.Final assembly occurs in South Korea and begins with inspecting, testing, and painting the Chinese bodyassembly. Afterwards, the lower cushion, the Chinese body assembly, the upper cushion, and the wear plateare inserted inside the frame. The cap is secured to the top of the frame using hex bolts and washers, whichare then torqued to specification. Lastly, the breaker is cleaned with compressed air, painted, and packagedwith a rod, which is the working tool that directly strikes the material.
When determining the country of origin for purposes of applying current trade remedies under Section 301and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters RulingLetter H301619, dated November 6, 2018. The test for determining whether a substantial transformation willoccur is whether an article emerges from a process with a new name, character, or use different from thatpossessed 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 unlessexcepted, every article of foreign origin imported into the United States shall be marked in a conspicuousplace as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such amanner as to indicate to the ultimate purchaser in the United States, the English name of the country of originof the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should beable to know by an inspection of the marking on the imported goods the country of which the goods is theproduct. 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 shouldinfluence his will.” See United States v. Friedlaender & 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 thecountry of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBPRegulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, orgrowth of any article of foreign origin entering the United States. Further work or material added to an articlein another country must effect a substantial transformation in order to render such other country the “countryof origin” within the meaning of the marking laws and regulations.CBP has held that whether an assembly process is sufficiently complex to rise to the level of a substantialtransformation is determined upon consideration of all the operations that occur within that country. Based onthe description of the manufacturing operations, we note that the final assembly process centers around thebody assembly, which is the mechanism that converts high-pressure hydraulic fluid into rapid, high-impactstriking force. Inserting this assembly into a housing does not transform the Chinese assembly into a new anddifferent article of commerce. Thus, based on the totality of the circumstances, the country of origin of thehydraulic breaker, model number SB81E, will be China.The holding set forth above applies only to the specific factual situation and merchandise description asidentified 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 theinformation furnished in the ruling letter, whether directly, by reference, or by implication, is accurate andcomplete in every material respect. In the event that the facts are modified in any way, or if the goods do notconform to these facts at time of importation, you should bring this to the attention of CBP and submit arequest for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material factsdescribed 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 ProtectionRegulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documentsfiled at the time this merchandise is imported. If you have any questions regarding the ruling, please contactNational Import Specialist Paul Huang at [email protected].
Sincerely,
(for)James P. ForkanDirectorNational Commodity Specialist Division