H315299

HQ H315299 January 4, 2022 OT:RR:CTF:VS H315299 JMV CATEGORY: Origin Jeremy R. Page Page-Fura PC 939 W. North Avenue, Suite 750 Chicago, IL 60642 RE: Country of origin of an Automotive Power Seat Cushion Frame for Section 301 trade remedy and Marking Dear Mr. Page: This is in response to your request, dated October 26, 2020, filed on behalf of your client Yanfeng Seating Mexico S.A. de C.V. (“YFS”). In your letter, you request a binding ruling on the applicability of Section 301 trade remedies and country of origin marking for an automotive power seat cushion frame. FACTS: The product at issue is an automotive power seat cushion frame classified under subheading 9401.90.10 of the Harmonized Tariff Schedule of the United States (“HTSUS”). The automotive power seat cushion will be produced from 67 to 73 components under five different sourcing scenarios. In each scenario, assembly will take place in Mexico from components of Mexican and Chinese origin. The assembly operations for the subject manual cushion frames under each scenario are largely the same: Production Scenario One Under the first production scenario proposed by YFS, the automotive power seat cushion frame will be manufactured from 68 distinct components of Mexican origin, including two motors, and four components of Chinese origin. The components of Chinese origin are a motor, a hose, and two shafts. The first step in the production process is to create the side bracket subassemblies by welding and riveting together a stamped side bracket, one or two bushings, a stamped linkage/bracket and a flat rivet. The next subassembly is the actuating tube assembly, which will work with the frame to support the power seat adjustment. To create the actuating tube assembly, YFS workers will combine a cross tube, two washers, and two stamped linkage brackets with a Gas Metal Arc Welding (“GMAW”) process. The third step is to create a cross tube subassembly to create additional structural integrity to the finished power seat cushion frame. YFS will join three components of Mexican origin – an assignment tube, a toothed linkage and a stamped linkage/bracket. YFS will rivet the toothed linkage to the bracket with a specifically designed fixture. Once riveted, YFS will weld the toothed linkage, bracket, tube and another linkage together. After any required painting and quality control processes, YFS will then combine these four subassemblies (two side bracket subassemblies, an actuating tube assembly, and a cross tube assembly) with 17 additional components of Mexican origin with rivets to create the cushion frame skeleton subassembly. The additional parts of Mexican origin are two plastic bushing bearings, a plastic bushing, two spring clips, two collar headed screws, a bolt, a flanged locknut, a power drive unit/motor, three plastic screws, and a ZB drive unit/motor. Cushion frame skeleton subassembly incorporates the structural components and motors required for the directional (horizontal and vertical) movement of the final power seat cushion frame. YFS will also produce a motor memory subassembly, which incorporates the only parts of Chinese origin: a plastic hose, two flexible shafts and a motor round. These Chinese parts will be manually assembled to a plastic bracket of Mexican origin to produce the complete subassembly. Finally, YFS will assemble the cushion frame skeleton subassembly and the motor memory subassembly with an additional 34 components of Mexican origin to produce the complete power seat cushion frame. Those components consist of the stamped cushion pan that forms the foundation for the cushion and eventual frame use; the spring mat seat that creates the support/“bounce” of the seat; two stamped tracks for purposes of the mounting of the finished frame in the motor vehicle; a stamped riser mount and bracket track mounting also used to create further structural integrity/framing for the finished assembly; a stamped bracket for mounting of the motor memory subassembly; and numerous fasteners and movement-related components, including screws, nuts, springs, bushings, and bushing bearings. YFS assembles two stamped tracks to the motor memory subassembly. YFS then assembles the cushion frame skeleton subassembly to the track assembly with four mounting screws. YFS will insert and screw the cushion pan along with the spring mat seat into place. YFS will apply a lubricant to the inner surface of the cross tube and plug a torsional spring into the cross-tube subassembly. YFS will assemble a height-adjust motor, which enables the adjusting and locking mechanism, to the growing structure with three specifically designed fasteners. Finally, the stamped riser mount and bracket track mounting will then be manually affixed to create the finished frame. In this first scenario, no parts of Chinese origin are also classified in 9401.90, HTSUS. Production Scenario Two Under YFS’s second proposed production scenario, all sourcing and production operations from scenario one will remain the same. However, in addition to sourcing the four components incorporated into the motor memory subassembly (the plastic hose, two flexible shafts and a motor round) from China, YFS would also source the left hand inner and outer stamped side brackets from China as well. These brackets would then still undergo further production at YFS to produce the complete Side Bracket Subassemblies. The assembly operations and other sourcing from Mexico discussed above would remain as is. In this second scenario, no parts of Chinese origin are also classified in subheading 9401.90, HTSUS. Production Scenario Three Under the third proposed scenario, YFS will source all 73 components from Mexico, except the ZB drive unit/motor, which is incorporated into the cushion frame skeleton subassembly. The assembly operations would remain as the first production scenario. In this third scenario, no parts of Chinese origin are also classified in subheading 9401.90, HTSUS. Production Scenario Four Under the fourth proposed production scenario, the number of sourced components will be reduced from 73 to 67 with the actuating tube subassembly and cross tube subassembly sourced as complete subassemblies from China. The remaining 65 components will be of Mexican origin. In addition, YFS will continue all other processing outlined above in Mexico. In this fourth scenario, the actuating tube subassembly and cross tube subassembly from China and 14 other parts from Mexico are also classified in subheading 9401.90.10, HTSUS. Production Scenario Five Finally, under YFS’s last proposed production scenario, the left-hand outer and inner stamped side brackets referenced in scenario two would again be sourced from China with all other components sourced from Mexico. This again results in a bill of materials comprised of 73 components, with 71 of those of Mexican origin. In this fifth scenario, no parts of Chinese origin are also classified in subheading 9401.90, HTSUS. ISSUE: What is the country of origin of the automotive power seat cushion frame in each of the five scenarios for purposes of applying Section 301 trade remedies? What is the country of origin of the automotive power seat cushion frame for marking purposes? LAW AND ANALYSIS: Section 301 Duties The United States Trade Representative (“USTR”) has determined that an additional ad valorem duty of 7.5% will be imposed on certain Chinese imports pursuant to USTR’s authority under Section 301(b) of the Trade Act of 1974 (“Section 301 measures”). The Section 301 measures apply to products of China enumerated in Section XXII, Chapter 99, Subchapter III, U.S. Note 20(s), HTSUS. Among the subheadings listed in U.S. Note 20(s) of Subchapter III, Chapter 99, HTSUS, is 9401.90.10, HTSUS. When determining the country of origin for purposes of applying trade remedies under Section 301, the substantial transformation analysis is applicable. The test for determining whether a substantial transformation will o

Section 301 DutiesThe United States Trade Representative (“USTR”) has determined that an additional ad valorem duty of 7.5% will be imposed on certain Chinese imports pursuant to USTR’s authority under Section 301(b) of the Trade Act of 1974 (“Section 301 measures”). The Section 301 measures apply to products of China enumerated in Section XXII, Chapter 99, Subchapter III, U.S. Note 20(s), HTSUS. Among the subheadings listed in U.S. Note 20(s) of Subchapter III, Chapter 99, HTSUS, is 9401.90.10, HTSUS. When determining the country of origin for purposes of applying trade remedies under Section 301, the substantial transformation analysis is applicable. 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). In deciding whether the combining of parts or materials constitutes a substantial transformation, the determinative issue is the extent of operations performed and whether the parts lose their identity and become an integral part of the new article. Belcrest Linens v. United States, 573 F. Supp. 1149 (Ct. Int’l Trade 1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). Assembly operations that are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. Factors which may be relevant in this evaluation may include the nature of the operation (including the number of components assembled), the number of different operations involved, and whether a significant period of time, skill, detail, and quality control are necessary for the assembly operation. See C.S.D. 80-111, C.S.D. 85-25, C.S.D. 89-110, C.S.D. 89-118, C.S.D. 90-51, and C.S.D. 90-97. If the manufacturing or combining process is a minor one which leaves the identity of the article intact, a substantial transformation has not occ