OT:RR:NC:N2:208
Johnathan Wiens
PricewaterhouseCoopers LLP
1420 Fifth Avenue
Seattle, Washington 98101
RE: The country of origin of a rear view sensing camera (RVSC) module.
Dear Mr. Wiens:
In your letter dated February 26, 2020, on behalf of Samsung Electro-Mechanics Co., Ltd. you requested a country of origin ruling determination.
The merchandise under consideration is a Rear View Sensing Camera (RVSC) module, part number VSM1RF02M4B. This camera module captures images at 30 frames per second (FPS) for a vehicle capable of autonomous driving. The RVSC module is designed to be mounted in a tailgate latch assembly on the rear of the vehicle for reverse sensing with a 150° Field of View (FOV). The subject camera module transmits video images to the vehicle's Electronic Control Unit (ECU). The RVSC module is not capable of recording video or still images.
According to the scenario provided, the RVSC's Sensor and Printed Circuit Board Assembly (PCBA) will be made in Vietnam. In Vietnam, the PCBA will be populated with twenty-eight discrete electronic components using surface mount technology (SMT). The first step of the manufacturing process will be the inspection of the Rigid PCB. The Rigid PCB is a rectangular shape that will be cut into eighteen individual camera modules. The Rigid PCB will be inspected before the baking process, which prepares it for the top screen-printing. Next, the MLCC, resistor, inductors, and the connector chips will be temporarily mounted to the top surface.
Then, the PCBA subassembly undergoes a reflow process where solder will be injected between the active and passive components and the PCB, which will permanently secure the components onto the PCB. The subassembly will then go through an automated optical inspection (AOI) before being flipped over for additional SMT processing. Once flipped over, the PCBA subassembly will be manually inspected to confirm the accuracy of the reflow step, the bottom of the PCB will be screen-printed, and additional chips will be mounted, including the image sensor and serializer chips. The bottom side will then undergo the second reflow and the AOI process.
During the third sequence, the assembly will be flipped over again for the Underfill Bonding process and the X-ray inspection process. After that, a printed barcode label will be attached and the PCBA will go through ICT to test signal quality. Next, the subassembly will go through the singulation process, whereby the eighteen PCBAs are cut from the large rectangular sheet. The PCBAs will then go through outgoing quality checks (OQC) and a final packing process that will prepare them for shipment to China for final assembly with the camera lens and housing.
In China, the final assembly occurs. The Chinese lens will be placed in a plastic housing top (made in Korea) and a plastic housing bottom (made in Korea) conceals the PCBA. Next, an O-ring seal, three metal screws, epoxy adhesive, and a barcode label will be attached. Last, the finished camera module will be packed, which includes a plastic tray with cover, foam pad, box, box label, bag, and tape.
The "country of origin" is defined in 19 CFR 134.1(b) 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 to render such other country the 'country of origin' within the meaning of this part.
When considering a product that may be subject to antidumping, countervailing, or other safeguard measures, the substantial transformation analysis is applied to determine the country of origin. See 19 C.F.R. § 102.0; HQ 563205, dated June 28, 2006; see also Belcrest Linens v. United States, 741 F.2d 1368, 1370-71 (Fed. Cir. 1984) (finding that “the term ‘product of’ at the least includes manufactured articles of such country or area” and that substantial transformation “is essentially the test used…in determining whether an article is a manufacture of a given country”).
The courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article before processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
Based on the scenario presented, it is the opinion of this office that the PCBA contributes to the main functionality of the finished rear view sensing camera module because the roles of these PCBAs, relative to the functioning of the product (i.e., taking the images, processing it into a digital signal, and transmitting images). The assembly process of the PCBAs in Vietnam by soldering the individual components onto the bare board would result in a substantial transformation of the components to produce the PCBAs of Vietnamese origin. The assembly processes that will take place in China will not result in a substantial transformation of the PCBAs. Accordingly, the Rear View Sensing Camera (RVSC) module would be considered a product of Vietnam for the origin and marking purposes at the time of importation into the United States.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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 Lisa Cariello at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division