N350622

N350622 July 21, 2025 OT:RR:NC:N2:206 CATEGORY: Origin Jeffrey Richardson Miller, Canfield, Paddock and Stone, P.L.C. 840 W. Long Lake Road, Suite 150 Troy, MI 48098 RE: The country of origin of 2nd generation and 3rd generation wheel hub bearing assemblies Dear Mr. Richardson: In your letter dated May 16, 2025, you requested a country of origin ruling on 2nd generation and 3rd generation wheel hub bearing assemblies (WHB) for marking purposes and for purposes of applying current trade remedies, which you filed on behalf of your client, APT Automotive Co., Ltd. The articles under consideration are 2nd Generation Wheel Hub Bearing Assembly (Part Number 980901A), which you refer to APT-Gen-2-WHB, and 3rd Generation Wheel Hub Bearing Assembly (Part Number 993336A), which you refer to as APT-Gen-3-WHB. The APT-Gen-2-WHB is an angular contact bearing used in a passenger vehicle wheel assembly. It integrates a bearing with a flange. The wheel is mounted on the flange, causing the inner ring to rotate. The inner ring is fitted to the shaft and rotates with the shaft as the motor vehicle moves. The APT-Gen-2-WHB consists of an integrated outer ring and flange, inner ring, cage, steel balls, grease and seal ring, and magnetic ring that interacts with an anti-lock brake system (ABS) sensor. The APT-Gen-3-WHB is commonly used on light trucks and sport utility vehicles (SUV) and enhances braking performance and vehicle stability, as well as reduces the vehicle weight. It consists of a bearing with an integrated outer ring and flange that attaches to the motor vehicle chassis and a larger flange that acts as a main body of the wheel hub while providing a mount for the brake disc and wheel. The tooth ring transmits power from the driveshaft to the wheel by rotating the inner ring with the movement of the traction control. In addition to the inner rings and flanges, the APT-Gen-3-WHB also incorporates tapered rollers, cage, grease and seal rings, bolt, and an ABS sensor. You state that the rough-cut inner ring, steel balls, and magnetic ring from China and grease from Japan are sent to Vietnam to be further processed and integrated with the Vietnamese outer ring with a flange and seal rings to create the APT-Gen-2-WHB. In Vietnam, the rough-cut rings are ground, turned, demagnetized, and heat treated to required diameters and measurements, creating precise raceways. The holes on the outer ring are then drilled and tapped into the integrated flange. Once cleaned, the inner and outer rings are then press-fit with the steel balls, cage, seal rings, grease, and magnetic ring to complete the APT-Gen-2-WHB. To create the APT-Gen-3-WHB, the rough-cut inner ring, tapered rollers, cage, and ABS sensor from China and grease from Japan are sent to Vietnam to be further processed and integrated with the Vietnamese outer ring with a flange, seal rings, and bolt. In Vietnam, the rough-cut rings are ground, turned, demagnetized, and heat treated to required diameters and measurements, creating precise raceways. The inner flange also undergoes spline broaching. The flanges then undergo drilling and tapping of holes. Once cleaned, the inner rings and outer rings are then press-fit with the rest of the components to complete the APT-Gen-3-WHB. When determining the country of origin for purposes of applying current trade remedies 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). Additionally, 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 its container) will permit, in such a manner as to indicate to the 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 marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that 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.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” as 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 the marking laws and regulations. HQ ruling 562528, dated December 10, 2002, which discusses the country of origin of a ball bearing, states that the fundamental character and use of the bearings is determined after the steel rings are ground and finished into races with precision raceways and they are no longer considered steel rings. This rationale is also discussed in HQ rulings 731968, March 19, 1990, and 731969, dated March 19, 1990, where rings are heat treated and polished in one country and the races are created, and superfinishing occurs in the second country. In these rulings, the country of origin of the bearings was determined to be the country in which the rings become races with precision raceways. In the instant case, the articles are not mere bearings, but rather wheel hub units, incorporating bearings, However, the APT-Gen-2-WHB acts as an anti-friction mechanism within the wheel assembly and allows the wheel to be mounted on the axle (shaft). Since the inner rings from China become races with precision raceways in Vietnam and the flange is made in Vietnam, the country of origin of the APT-Gen-2-WHB (Part Number 980901A) will be Vietnam for marking purposes and for purposes of applying current trade remedies. Furthermore, the splining feature of the APT-Gen-3-WHB gives the wheel hub a functionality beyond a bearing. It allows the wheel hub to mesh with the drive axle to transmit torque. As such, we find the outer and inner flanges are the dominant components that impart the character. Since the inner and outer flanges are made in Vietnam and spline broaching occurs in Vietnam, we find that the country of origin of the APT-Gen-3-WHB (Part Number 993336A) will be Vietnam for marking purposes and for purposes of applying current trade remedies. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordanc

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). Additionally, 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 its container) will permit, in such a manner as to indicate to the 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 marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that 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.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” as 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 ot