RE: The country of origin of a vulcanized steel track shoe

U.S. Department of Homeland Security U.S. Customs and Border Protection National Commodity Specialist Division One World Trade Center, Suite 51.201 New York, NY 10007 U.S. Customs and Border Protection N364186 August 27, 2026 OT:RR:NC:N1:103 CATEGORY: Origin David Forgue Barnes, Richardson & Colburn, LLP 303 East Wacker Drive, Suite 305 Chicago, IL 60601 RE: The country of origin of a vulcanized steel track shoe Dear Mr. Forgue: In your letter dated August 10, 2026, you requested a country of origin ruling on behalf of your client, thyssenkrupp Berco of America. The merchandise under consideration is a vulcanized steel track shoe, model AK185N, which is described as a type of steel track shoe designed for heavy equipment, such as dozers and excavators. It features a vulcanized rubber coating that protects high-value surfaces like roads and grass during operation. The track shoe has a vertical grouser bar that tapers toward the top, a base that consists of a flat plate with visible mounting holes, and two distinct notches, known as articulation windows, on one side edge. The manufacturing process begins in Turkey where steel bar profiles are cut to length. The steel profiles are sourced from the United Kingdom where they are extruded from a mixture of iron ore and steel scrap. After the profiles are cut to length in Turkey, the notches are machined and the bolt holes are drilled into the face. At this stage, the item possesses the essential shape and the characteristics of a steel track shoe. The shoe is then sent to Italy where it undergoes a heat treatment process that involves austenitizing, quenching, and tempering. Afterwards, the steel shoe undergoes a vulcanization process, during which a specialized rubber is permanently affixed to the steel. When determining the country of origin for purposes of applying current trade remedies under Section 301 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. 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 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. Based on the information provided, it is our view that the operational steps that will occur in Italy do not transform the track shoe into a different article of commerce. The subsequent processing in Italy, which includes heat treatment and the application of a vulcanized rubber coating, represents the final stage of production. While this process enhances the utility of the shoe for specific high-value surface environments, it does not alter the fundamental use of the article. Its primary function of increasing traction, distributing the weight of the machine, and protecting the track system is established upon completion of the manufacturing steps in Turkey. As such, and based on the totality of the circumstances, the country of origin of the track shoe will be Turkey. 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 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 Paul Huang at [email protected]. Sincerely, (for) James P. Forkan Director National Commodity Specialist Division