H344538

H344538 September 11, 2025 OT:RR:CTF:VS H344538 RMC CATEGORY: Origin Brian K. Smith Johnson Electric 47660 Halyard Dr. Plymouth, MI 48170 RE: Classification, Country of Origin, and USMCA Eligibility of Transmission Fluid Pump Dear Mr. Smith: This is in response to your correspondence of January 2, 2025, in which you ask U.S. Customs and Border Protection (“CBP”) to address the classification of a transmission fluid pump along with its country of origin for purposes of Section 301 measures and its eligibility under the United States-Mexico-Canada Agreement (“USMCA”). Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for response. We determined that certain information submitted in connection with this internal advice request should be treated as confidential. Therefore, pursuant to the requirements of 19 C.F.R. §177.2(b)(7), the information contained within brackets and all attachments to this internal advice request, forwarded to our office, will not be released to the public and will be withheld from published versions of this decision. FACTS: The merchandise at issue is a transmission fluid pump assembly (finished good part number 612818), that will be manufactured by an affiliated company (Johnson Electric Canada) in Mississauga, Ontario. The function of the product is to provide pressurized automotive transmission fluid to the appropriate bands and clutches within the transmission of a passenger vehicle. The automatic transmission fluid that the pump moves through the system provides lubrication, corrosion prevention, and a hydraulic medium to transmit the power required to operate the transmission. 1 You state that the transaction value and net cost for the good is $[ ] Canadian Dollars (“CAD”) and $[ ], respectively, and provided the following bill of materials: Material Quantity Classification Value Originating Country of Origin Name (CAD) Status Cover Cast 1 8413.91 $[ ] Nonoriginating China Bushing 1 8483.30 $[ ] Originating United States Cover Inlet Seal 1 4016.93 $[ ] Originating United States Assembly Inlet Seal 1 4016.93 $[ ] Originating United States Inlet Seal 1 7326.90 $[ ] Originating United States Ring Baseplate 1 8413.91 $[ ] Nonoriginating China Cast Slide Cast 1 8413.91 $[ ] Originating Canada Slide Seal 1 7326.90 $[ ] Originating United States Slide Seal 1 8413.91 $[ ] Nonoriginating Taiwan Support Ring Slide 1 4016.93 $[ ] Originating United States Seal Slide Seal O- 1 7326.90 $[ ] Nonoriginating Taiwan Ring Channel Plate 1 8413.91 $[ ] Nonoriginating China Cast Bushing – 1 8483.30 $[ ] Originating United States Chanel Plate Baseplate 1 8413.91 $[ ] Nonoriginating China Cast – 6mm Rotor Cast 1 8503.00 $[ ] Originating Canada Vane Ring 1 8413.91 $[ ] Nonoriginating China Priming 1 7320.20 $[ ] Originating United States Spring Relief Ball 1 8481.90 $[ ] Nonoriginating China Transmission 1 8708.99 $[ ] Nonoriginating Korea Pump Shaft M6X58 Bolt 1 7318.14 $[ ] Originating United States 2 Shroud & 2 8483.90 $[ ] Originating United States Gear Assembly Shroud Sub- 1 8482.90 $[ ] Originating United States Assembly Shroud Sub- 1 8483.90 $[ ] Originating United States Assembly C&S Shroud Base 1 8483.90 $[ ] Originating United States Shroud Insert 1 8483.90 $[ ] Originating United States Drive Gear 2 8483.90 $[ ] Originating Canada Clip 1 8483.90 $[ ] Originating United States Shroud 1 8483.90 $[ ] Originating United States Cover Shroud 1 8483.90 $[ ] Originating United States Cover C&S M6X20 Bolt 2 7318.14 $[ ] Originating United States The Canadian manufacturing of the goods involves more than 100 steps and 74 different components, including all subassemblies and individual components. The three major casting components are: (1) the cover casting; (2) the baseplate casting; and (3) the channel plate casting. Each is imported from China into Canada for further processing into subassemblies. The Canadian processing for each begins with machining, milling, drilling, reaming, disc griding, and deburring. Once this processing is completed, the castings are combined with other components, such as bushings, ring dowels, and seals, to complete the subassemblies. After the subassemblies have been manufactured, they are assembled into the finished goods via two interconnected assembly lines and a third separate assembly line where the pump shroud and gear are assembled. In short, the assembly involves ultrasonic washing and drying, affixing the three major subassemblies, and installing components such as rings, pivot pins, springs, bolts, and c-clips. Once assembled, the transmission fluid pump assembly will be incorporated into the transmission of a passenger vehicle which uses an internal combustion piston engine. It will be mounted between the torque converter and the planetary gear set, intended to pump automatic transmission fluid to assist in the changing of gears within a passenger vehicle. ISSUES: I. What is the classification of the transmission fluid pump? II. What is the country of origin of the transmission fluid pump for purposes of Section 301 measures? 3 III. Whether the transmission fluid pump is eligible for USMCA preferential tariff treatment under the USMCA when imported from Mexico into the United States. LAW AND ANALYSIS: I. Classification In your submission, you suggest that the product is properly classified in subheading 8413.60.00, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Other rotary positive displacement pumps: . . . .” In New York Ruling Letter N171997, dated July 18, 2011, CBP held that a “fixed (positive) displacement gear pump” was properly classified in 8413.60.00, HTSUS. The pump used an arrangement of gears to generate fluid pressure and circulate hydraulic fluid to both the transmission and the torque converter. For similar reasons, we hold that the merchandise at issue is properly classified in subheading 8413.60.00, HTSUS, under General Rules of Interpretation 1 and 6. II. Country of Origin for Purposes of Section 301 Measures 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 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(b), HTSUS. Among the subheadings listed in U.S. Note 20(b) of Subchapter III, Chapter 99, HTSUS, is 8413.60.00. When determining the country of origin for purposes of applying trade measures under Section 301, the substantial transformation analysis applies. 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. Texas Instruments, Inc. v. United States, 69 CCPA 151, 681 F.2d 778 (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, 6 CIT 204, 573 F. Supp. 1149 (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,

I. Classification In your submission, you suggest that the product is properly classified in subheading 8413.60.00, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Other rotary positive displacement pumps: . . . .” In New York Ruling Letter N171997, dated July 18, 2011, CBP held that a “fixed (positive) displacement gear pump” was properly classified in 8413.60.00, HTSUS. The pump used an arrangement of gears to generate fluid pressure and circulate hydraulic fluid to both the transmission and the torque converter. For similar reasons, we hold that the merchandise at issue is properly classified in subheading 8413.60.00, HTSUS, under General Rules of Interpretation 1 and 6. II. Country of Origin for Purposes of Section 301 Measures 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 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(b), HTSUS. Among the subheadings listed in U.S. Note 20(b) of Subchapter III, Chapter 99, HTSUS, is 8413.60.00. When determining the country of origin for purposes of applying trade measures under Section 301, the substantial transformation analysis applies. 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. Texas Instruments, Inc. v. United States, 69 CCPA 151, 681 F.2d 778 (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 ident