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CBP Finds Battery-Electric Semi-Truck Is of US Origin

The country of origin for imported components of the "Nikola’s Tre Bev, class 8, battery-electric semi-truck" is the U.S. for government procurement purposes, as the parts undergo a substantial transformation when assembled into an electric truck, CBP said. The components lose their individual identity and become an "integral part" of a new article with a new name, character and use.

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The final determination, issued May 8 and released May 13, came in response to a request filed by Carter Machinery. The company said that the item is a "battery-electric, zero emission," heavy-duty truck, with a 330-mile range. Carter Machinery submitted a bill of materials containing the country of origin of the components and documents "illustrating" the assembly process, CBP said. The assembly process is a 15-station process whereby products from the U.S. and other countries of origin are combined to become a truck.

CBP said that the imported components, such as the chassis and e-axle, cannot "independently function and operate" as an electric vehicle. And the "complexity and duration" of the assembly process makes it more than "mere assembly," CBP said. In addition, approximately 67% of the cost of the parts is "represented" by U.S.-made products and the trucks are built in Arizona, it said.

Parties of interest may seek judicial review of this determination no later than June 13. Carter Machinery didn't respond to our request for comment.