H347415

H347415 July 21, 2025 OT:RR:CTF:VS H347415 AP CATEGORY: Origin Lawrence M. Friedman, Partner Barnes, Richardson & Colburn, LLP 303 East Wacker Drive, Suite 305 Chicago, IL 60601 RE: Unassembled Latch Assemblies; Country of Origin; Section 301 and IEEPA Duties Dear Mr. Friedman: This is in response to your March 7, 2025 ruling request, filed on behalf of D&D Technologies (“importer”), regarding the country of origin of two unassembled latch assemblies (“latches”) of subheading 8302.49.60, Harmonized Tariff Schedule of the United States (“HTSUS”), for purposes of Section 301 and International Emergency Economic Powers Act (“IEEPA”) duties. FACTS: The first latch assembly is a q-bolt latch (“q-latch”). It includes a plastic housing (two narrow brackets), bag, stickers and instructions made in Australia; steel screws manufactured in Taiwan; and a steel q-bolt from China. The q-bolt is a 24-inch stainless-steel unthreaded rod that is chamfered on both ends and bent into an almost complete U-shape on one of the ends. The steel q-bolt holds the gate closed and is the most expensive component of the assembly. The second latch assembly is a toggle latch (“t-latch”), which includes a plastic housing (cover, backing plate, and catch), bag, stickers and instructions from Australia; steel screws from Taiwan; and a steel t-bolt pin from China. The t-bolt pin consists of two pieces of unthreaded metal rod that are pressed together to form a t-shape. The steel t-bolt pin is the most expensive component in the assembly. Once assembled, usually to a gate, the t-bolt pin holds the gate closed. All components needed to form a complete t-latch assembly and a complete q-latch assembly will be packed together but kept unassembled in Australia for shipment to the United States. After importation into the United States, the t-latch and q-latch assemblies will be sold unassembled for home assembly by U.S. purchasers who will assemble and install the latches. The importer believes that the country of origin for the latch assemblies is Australia or in the alternative, the latch components are products of Australia and China with Section 301 and IEEPA duties applicable only to the Chinese components of the latches. The importer states that the steel q-bolt and steel t-bolt pin are the component that imparts the essence to the complete latches because they secure the gate when closed and provide the latches their functionality. ISSUE: What are the countries of origin of the complete unassembled q-latch and t-latch assemblies for purposes of Section 301 and IEEPA duties? LAW AND ANALYSIS: The United States Trade Representative (“USTR”) has determined that an additional ad valorem duty 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(f), HTSUS. Among the subheadings listed in U.S. Note 20(f) is 8302.49.60, HTSUS. In addition, effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional duty. At the time of entry, the importer must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 8302.49.60, HTSUS, listed above. Further, effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products from countries other than China will be subject to an additional duty. At the time of entry, the Chapter 99 heading applicable to the article’s classification must be reported, i.e. 9903.01.25, in addition to subheading 8302.49.60, HTSUS, listed above. A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, or use, which differs from the original material subjected to the process. In Nat’l Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993), the court determined that hand tool components, which were cold-formed and hot-forged in Taiwan into their final shape, with post-importation processing such as heat treatment and electroplating, and assembly occurring in the United States, did not undergo substantial transformation in the United States. There was no change in name because each article as imported had the same name in the completed tool. There was no change in character because the articles remained the same after heat treatment, electroplating, and assembly in the United States. The use of the imported articles was predetermined at the time of entry – each component was intended to be incorporated in a particular finished mechanics’ hand tool, except for one exhibit with a dual use. 2 In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, U.S. Customs and Border Protection (“CBP”) considers the totality of the circumstances. 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. Assembly operations that are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. If the manufacturing or combining process is a minor one which leaves the identity of the article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United States, 3 CIT 220 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Packaging alone is not a substantial transformation. In Headquarters Ruling Letter (“HQ”) 733729, dated January 2, 1991, the packaging of teas in Singapore was not deemed to be a substantial transformation, as it resulted in no change in the name, character, or use of the imported teas. The country of origin of the packaged teas was Sri Lanka, where the teas were grown and processed by the addition of flavorings. General Rule of Interpretation (“GRI”) 2(a) applies to unassembled or disassembled goods presented with all components such as an unassembled bicycle or an unassembled latch. In New York Ruling (“NY”) N344425, dated December 30, 2024, “Completely Knocked Down” bicycles comprising of unassembled bicycle components were shipped from Malaysia and assembled in the United States. The bicycle frames were made in Malaysia and many of the other bicycle components, such as suspension forks, drive train parts, cranks, seats, and wheels, were from other countries, including China. By application of GRIs 1 and 2(a), the unassembled bicycle was classified as if it was a fully assembled bicycle in subheadings 8712.00.15 or 8712.00.35, HTSUS. The Malaysian bicycle frame was one of the bicycle’s most significant components and determined the country of origin of the unassembled bicycles. Similarly in NY N302992, dated March 27, 2019, bicycles were imported in a disabled state with one complete bicycle in each box. The bicycle component assembly operation, inspection, and packaging performed in Taiwan did not result in a substantial transformation of the frames. The country of origin of the bicycles was China where the frames were cut, formed, and welded prior to being shipped to Taiwan for component assembly. The non-bicycle origin cases that you cited arrived at the same conclusion. In NY N339173, April 17, 2024, the wind turbine steel structure was composed of front and rear subassemblies, H-beams, and plates, which were assembled in Mexico by drilling and welding. The production process began in China wh

The United States Trade Representative (“USTR”) has determined that an additional ad valorem duty 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(f), HTSUS. Among the subheadings listed in U.S. Note 20(f) is 8302.49.60, HTSUS. In addition, effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional duty. At the time of entry, the importer must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 8302.49.60, HTSUS, listed above. Further, effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products from countries other than China will be subject to an additional duty. At the time of entry, the Chapter 99 heading applicable to the article’s classification must be reported, i.e. 9903.01.25, in addition to subheading 8302.49.60, HTSUS, listed above. A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, or use, which differs from the original material subjected to the process. In Nat’l Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993), the court determined that hand tool components, which were cold-formed and hot-forged in Taiwan into their final shape, with post-importation processing such as heat treatment and electroplating, and assembly occurring in the United States, did not u