MAR-2 OT:RR:NC:N4:410
Mr. Long Vu
Customs Compliance Manager
Walgreen Co.
304 Wilmot Road
MS #3163
Deerfield, IL 60015
RE: The country of origin determination of light sets
Dear Mr. Vu:
This is in response to your letter dated August 6, 2018, requesting a country of origin determination for six products identified as “Indoor/Outdoor Light Sets,” imported from Cambodia. The samples will be will be returned to you.
The six products are the Walgreens’ Items Code ("WIC") 347599, 347693, 781075, 781076, 781077 and 781079. These are light sets used for Christmas trees, featuring miniature incandescent bulbs.
According to the information submitted, each item is comprised of the following components: a Cord Connector, Electric Wires, Lead Contacts, Fuses, Light Bulbs, Color Boxes, UL labels and a Carton Box. The packing materials (carton boxes) are from Cambodia, the UL labels from United States (U.S.) and all the remaining components purchased from China.
You described the Cambodian’s assembly operation processing steps as follows:
1) Making Lamp Husks/Lamp Bases from Flame Retardant Polypropylene pellets
2) Connect the Main Strings with Copper Contacts
3) Assemble with Current Taps & Cord Connectors
4) Plug & Wire Assembly
5) Make the Unilateral Wire - putting together the Lamp, Lamp Husk, Wire and Copper
Contacts
6) Assemble the Main Strings with the Lamp Husks
7) Twist the Main Strings and the Unilateral Strings Together
8) Test the Light Sets
9) Tidy up the Light Sets and
10) Perform the Final Inspection & Packing
Section 134.1(b), Customs Regulations (19 C.F.R. § 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”.
The assembly operations performed in Cambodia does not substantially transform the Chinese and U.S. originating components into Cambodian products. With the exception of the Lamp Husk/Lamp Base, which were made of Chinese Flame Retardant Polypropylene pellets, the assembly in Cambodia of the individual components to produce the finished Christmas light sets does not create a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Cambodia.
Based on the information submitted, we are of the opinion that the processing performed in Cambodia with respect to the Christmas tree light sets does constitute in a substantial transformation of all of the imported materials into "products of" Cambodia. Therefore, as the "product of" requirement has not been satisfied, the Christmas tree light sets are not eligible for duty-free treatment under the Generalized System of Preferences (GSP.)
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Hope Abada at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division