MAR-2 OT: RR: NC: N4:410
Ms. Ada Grace
Meteor Illumination Technologies Inc.
1300 John Reed Ct., Unit B
City of Industry, CA 91745
RE: The Country of Origin of an LED Ceiling Light
Dear Ms. Grace:
This is in response to your letter dated February 3, 2020, requesting a country of origin determination on an LED ceiling light.
The merchandise under consideration is identified as the Cree XLamp, which is a cylindrical LED ceiling lighting fixture. It consists of an aluminum housing, a heat sink, LED lamps, a reflector, a diffuser and a power supply. The Cree XLamp is comprised of approximately 30 parts and components, which are of Taiwanese origin except for the COB (Chips on Board) LED lamp from China, the LED holder from Germany and the power supply from Mexico. The Taiwanese origin parts and components represent 76% of the total cost in the Bill of Materials, and the remaining 24% is for the imported parts and components.
The provided assembly processing information indicates that the manufacturing process has 12 distinct steps to assemble the approximately 30 parts and components to make the Cree XLamp by screwing and connecting of electrical wiring. The inspection and testing procedures are followed.
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”.
In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative.
We are of the opinion that, although the majority of the parts and components are of Taiwanese origin and the manufacturing process occurs in Taiwan, the COB LED lamp is the single most important and critical component. It possesses the predetermined end-use for the making of the Cree XLamp. The use of the article has already been pre-determined upon importation from China to Taiwan. The assembly operations performed in Taiwan do not substantially transform the Chinese originating components into Taiwanese products. The assembly in Taiwan of the individual components to produce the finished Cree XLamp 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 Taiwan. Per 19 CFR Part 102, the Mexican power supply undergoes a tariff change; however, the Chinese COB LED lamp does not undergo a substantial transformation. The components of the Cree XLamp, e.g., COB LED lamp does not lose its individual identity as a result of the assembly process in Taiwan. Therefore, the "product of" requirement has not been satisfied. The country of origin of the Cree XLamp is China.
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 Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division