The point in which a good or material is substantially transformed into a new and distinct article of commerce based on a change in name, character, or use. When determining origin, CBP takes into account one or more of the following factors:

  •  the character/name/use of the article;
  • the nature of the article’s manufacturing process, as compared to the processes used to make the imported parts, components, or other materials used to make the product;
  • the value added by the manufacturing process (as well as the cost of production, the amount of capital investment, or labor required) compared to the value imparted by other component parts; and
  • whether the essential character is established by the manufacturing process or by the essential character of the imported parts or materials