Importer Challenges Chinese-Origin Designation of Imported Actuators From Mexico
Actuators used in automotive applications that were produced in Mexico from Chinese, Mexican, U.S. and Taiwanese components are correctly Mexican origin and shouldn't have been assessed Section 301 tariffs, importer Suprajit said in a Sept. 22 complaint at the Court of International Trade (Suprajit Controls v. U.S., CIT # 23-00181).
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Suprajit argued that the actuators are products of Mexico, having been created there by "a series of manufacturing operations which resulted in the creation of new and different articles of commerce" from the Chinese-origin motors. The actuators meet the "substantial transformation" test and should have been declared products of Mexico, Suprajit said.
Mexican-origin components account for most of the actuators’ cost and U.S.-origin components account for a majority of the actuators’ components, Suprajit said.
The actuators at issue are new articles of commerce, which have a name and character different from that of any of their constituent materials or components, Suprajit said. The actuators are devices dedicated to a particular purpose, rather than discrete components, which could be used to manufacture a variety of finished goods, the importer said.
The actuators themselves are described as electromechanical devices designed to control the flow of energy to direct movement in motor vehicles. The actuator converts energy into an intended mechanical motion by relying on a printed circuit board assembly to intelligently process input signals, regulate the power delivery, and coordinate a specific function, Suprajit said.
The manufacturing operations performed in Mexico include the injecting of molten zinc to create certain components of the actuators, injection-molding resins to create plastic housings and gears, creating the printed circuit board assemblies, and combining the components produced in Mexico, Taiwan, the U.S. and China, Suprajit said. After assembly, the PCBAs are programmed with firmware in Mexico, it said.