H325607

H325607 August 29, 2025 OT:RR:CTF:VS H325607 RRB CATEGORY: Origin Stephen Michael Ridolphi J Juan Brake Systems C/ Miguel Servet, 21-23 Gava-Barcelona, 08850 Spain RE: Revocation of NY N302378 and NY N331974; Country of origin of a brake hose Dear Mr. Ridolphi: This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered New York Ruling Letter (“NY”) N302378, dated February 15, 2019, concerning the country of origin marking of Teflon and Nylon steel-braided brake hoses. We have also reconsidered NY N331974, dated May 3, 2023, which addresses the country of origin for duty purposes of substantially similar merchandise. For the reasons set forth below, we hereby revoke NY N302378 and NY N331974 with respect to the country of origin marking and country of origin for duty purposes, respectively, of the subject brake hoses. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke NY N302378 and NY N331974 was published on July 2, 2025, in Volume 59, No. 27 of the Customs Bulletin. No comments were received in response to the proposed action. FACTS: In NY N302378, the brake hoses at issue were described as follows: The two items under consideration have been identified as Teflon Steel-Braided Hoses and Nylon Steel-Braided Hoses. You state in your request that the Teflon and Nylon hoses with steel wire braided around are produced in Spain. The raw materials, such as Teflon, Nylon, and steel wire are supplied by European companies. After the hoses are unpacked, they are put through machines, where the steel wire is braided around it. Finally, the outer nylon cover is extruded on top at the Spanish supplier. Once the outer sheath is extruded on the tubes, it is then repackaged for shipment to your facility in China. In China, the brake hoses are assembled with steel fittings and/or ZAMAK clamps, the latter of which are supplied by European companies. Once this simple assembly is complete the braided brake hoses are packaged for shipment to the United States. In NY N302378, CBP found that the merchandise was substantially transformed in China such that the country of origin for marking purposes was China. In NY N331974, the brake hoses at issue were described as follows: In your request, you state that this Front Brake Hose is used on Harley Davidson motorcycles. It is assembled in Thailand from materials/components from Thailand, Japan, China, Germany, United States and Poland. Descriptive literature and pictures were provided with your request. The item under consideration has been identified as Part# 000-S22-1H3 (Motorcycle Front Brake Hose). The Front Brake Hose has an inner tube made of fluorine resin, SUS wire braiding and thermoplastic urethane outer cover. The brake hose assembly is comprised of subassemblies L2ASSY and L1ASSY. These assemblies are comprised of: 1) Hoses 2) Pipe Fittings 3) Banjo Fittings 4) Flange Bearings 5) Shrink Tube 6) Grommets 7) Bolts 8) Washers 9) Brackets 10) 3M Tape The finished Front Brake Hose assembly is used to deliver braking force to the brake pads via hydraulic pressure and brake fluid. You state that the Front Brake Hose assembly is composed primarily of bulk roll Japanese origin hose (fluorine resin, SUS wire braiding and thermoplastic urethane outer cover), which is imported into Thailand where it is cut to specific length and then crimped. Additionally, you state that the fittings used are imported into Thailand from China, Germany, United States and Thailand. The finished brake hoses are then packaged for export to the United States. In NY N331974, CBP found that the merchandise was substantially transformed in Thailand such that the country of origin for duty purposes was Thailand. ISSUE: What is the country of origin of the subject brake hoses for marking and duty purposes? 2 LAW AND ANALYSIS: 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 container) will permit in such a manner as to indicate to an 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 markings on the imported goods the country of which the good is the product. “The evident purpose is to mark the goods so 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.” United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940). The regulations implementing the requirements and exceptions to 19 U.S.C. § 1304 are set forth in Part 134, Customs and Border Protection Regulations (19 C.F.R. Part 134). 19 C.F.R. § 134.1(b) provides as follows: “Country of origin” means 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; …. When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling (“HQ”) 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 Nat’l Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). To determine whether a substantial transformation occurs, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post- assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative. The Court of International Trade more recently interpreted the meaning of “substantial transformation” in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016). Energizer involved the determination of the country of origin of a flashlight, referred to as the Generation II flashlight. All of the components of the flashlight were of 3 Chinese origin, except for a white LED and a hydrogen getter. The components were imported into the United States and assembled into the finished Generation II flashlight. The Energizer court reviewed the “name, character and use” test utilized in determining whether a substantial transformation had occurred and noted, citing Uniroyal, Inc. v. United States, 3 C.I.T.220, 226 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post- importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted that “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an e

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 container) will permit in such a manner as to indicate to an 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 markings on the imported goods the country of which the good is the product. “The evident purpose is to mark the goods so 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.” United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940). The regulations implementing the requirements and exceptions to 19 U.S.C. § 1304 are set forth in Part 134, Customs and Border Protection Regulations (19 C.F.R. Part 134). 19 C.F.R. § 134.1(b) provides as follows: “Country of origin” means 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; …. When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling (“HQ”) 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.