N348937

N348937 June 2, 2025 OT:RR:NC:N2:201 CATEGORY: Origin Lisa Murrin Expeditors Tradewin LLC 795 Jubilee Drive Peabody, MA 01960 RE: The country of origin of a Segway off-road vehicle Dear Ms. Murrin: In your letter dated May 13, 2025, you requested, on behalf of your client, Segway Powersports, Inc., located in McKinney, TX, a country of origin ruling on an off-road vehicle assembled in Thailand. The item under consideration has been identified as the Segway off-road vehicle (Segway), model # SGW1000F-U4. You identified over 600 parts that are shipped from China to Thailand and assembled into the finished vehicle. The main assembly line processes are highlighted below. Install the Front Axle, rear stabilizer bar, panel, and heat shield Pre-assemble the steering gear (subassembly) ECU (engine control unit)/T-Box programming Install the floor panel and pre-install water pipes Pre-install the engine mounting brackets, and install the engine Pre-assemble exhaust elbow (subassembly) and install Install the drive shaft, air filter, throttle body, air ducts and engine exhaust pipe Install the velocity drive shaft, control arms, stabilizer bar ball joint, wheels and hub bearing housing Install the calipers, brake pipeline, shock absorbers, and steering tie-rods Pre-assemble the fuel tank (subassembly); pre-assemble front and rear seat brackets; pre-assemble the radiator (subassemblies); and then assemble to the vehicle Pre-assemble the front bumper (subassembly); install the parking brake lock and seat belt; install the seats and foot pedals Pre-assemble brake pedals (subassembly); fix wiring harness; assemble backrest support Install the muffler cylinder, reinforcement brace, crossbeam, shift lever, and relay Install the rectifier, winch relay, T-Box, steering column, connect pull lock and brake pipeline, and connect brake pedal and throttle Install the headlight covers, foot pedals, fuel filler, baffles, and tire covers Install the steering wheel Performance Test Pre-assemble the cargo box (subassembly) Install the vehicle exterior parts/accessories, including doors, storage box, armrest, floor panels, and headrests You provided documents that show that the Segway will go through thirty-three (33) workstations. The entire assembly process takes thirty-four (34) workers approximately 15.55 hours per vehicle. 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). The substantial transformation test is fact-specific and applied on a case-by-case basis depending on the totality of factors. The primary focus of the substantial transformation test is whether the work or material added to an article in another country changed the character or use of the article. A change in the name of materials added to an article, without more, will rarely support the interpretation that the processing in question substantially transformed those materials. In determining 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). 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. In binding ruling N320280 (July 22, 2021), CBP determined the country of origin of a similar all-terrain vehicle (ATV) assembled in Thailand from Chinese components. As described in this ruling, the ATV is comprised of 1,375 component parts, and went through 22 “main”, 14 “sub”, and 3 “inspection” stations during the assembly processes. Some of the assembly processes include: Engine and Front and Rear Axle Assembly Rear Suspension Assembly, which includes installation of left and right rocker arm subassemblies, the rear sway bar, and mounting brackets for shock absorbers and brake calipers Assembly of Main Cable and Middle functional parts of vehicle body, which includes the radiator and cooling system, fuel tank, voltage regulator, steering wheel and system related components, Continuous Variable Transmission (CVT), and air filters Installation of Dashboard, Upper Panel, and Headlight Sub-Assembly The fabrication of the vehicle frame, which included welding and electrophoretic painting, and was considered its own subassembly, was performed in China and shipped in bulk to Thailand. CBP held that the country of origin of the ATV was Thailand because the assembly process is sufficiently complex enough to constitute a substantial transformation and results in an article with a new name, character, and use such that the country of origin is Thailand. In many cited rulings CBP did note that the “ assembly of components is necessary for the ATV to function, and that the assembly results in a substantial transformation”. The assembly process of the Segway is similar as described above. You state that the following key assembly steps take place in Thailand: Engine, axle, and rear stabilizer bar assembly Installation of the rocker arm subassemblies, the brake calipers and shock absorbers Assembly the radiator, fuel tank, steering wheel, air filter, drive shaft, and exhaust Installation of the instrument panel and headlights Numerous subassemblies are assembled in Thailand, along with the assembly of hundreds of parts. Some of these subassemblies include the exhaust pipe, steering knuckle, wheel support, muffler subassembly, fuel tank, seat brackets, radiator, bumpers, brake pedal, and the vehicle frame bottom plate assembly. This office sees no reason to not apply the same rationale from ruling N320280, the assembly process resulted in an article with a new name, character, and use. The assembly of the components is necessary for the off-road vehicle to function, and the assembly process is sufficiently complex to result in a substantial transformation of the components. Similarly, in Headquarters ruling H330647 (October 5, 2023) CBP determined the country of origin of electric passenger vehicles assembled in Country A from globally sourced components, 75% of which were from China. The full vehicle assembly, including the power train, will be completed in Country A. The assembly includes, but is not limited to: Removal of doors from painted body and glazing; primary seal to doors and assembly of external doors finisher; latches and mirrors assembly; door glasses fitting; doors harness routing and modules fitting; speakers and door closing finisher assembly; Retractor and tailgate weatherstrip assembly; tailgate harness connection to the main harness; instrument panel fitting; anti-lock brake system subassembly and assembly. Center console subassembly; underbody assemblies (e.g., braking systems). Headlamp fitting; fluid fill; seats row fitting; steering wheels; 12v battery fit; door fitting; windshield washer reservoir filling. Rear knuckle subassembly; damper assembly, assembly of rear electric drive unit; rear suspension assembly; main harness and coupling. Motor dropped onto the front subframe, mounting of front comer assembly and suspension system parts fixing. Connection of upper and lower body; r

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). The substantial transformation test is fact-specific and applied on a case-by-case basis depending on the totality of factors. The primary focus of the substantial transformation test is whether the work or material added to an article in another country changed the character or use of the article. A change in the name of materials added to an article, without more, will rarely support the interpretation that the processing in question substantially transformed those materials. In determining 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). 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. In binding ruling N320280 (July 22, 2021), CBP determined the country of origin of a similar all-terrain vehicle (ATV) assembled in Thailand from Chinese components. As described in this ruling, the ATV is comprised of 1,375 component parts, and went through 22 “main”, 14 “sub”, and 3 “inspection” stations during the assembly processes. Some of the assembly processes inc