OT:RR:NC:N2:208
Wesley Demory
Thomsen and Burke LLP
2 Hamill Road, Suite 415 Baltimore, MD 21210
RE: The country of origin of security cameras
Dear Mr. Demory:
In your letter dated April 24, 2024, on behalf of Verkada Inc., you requested a country of origin ruling.
The merchandise under consideration is the Verkada dome and fisheye security cameras, models CD22, CD32, CD42, CD52 (Indoor Dome Camera), and CF81-E (Outdoor Fisheye Camera), which are security cameras for indoor or outdoor use. They can capture images with up to 4K resolution and are typically installed on a wall, pole, ceiling, or other structure. All subject cameras contain data encryption, onboard storage, and motion sensors.
As per the information provided, all printed circuit board assembly (“PCBA”) production and device firmware load occur in Taiwan. Moreover, for the dome cameras, the Main Processing Board, the Image Sensor Board, the IR LED Board, and the Microphone Board are all manufactured in Taiwan. Regarding the fisheye security camera, the Main Processing Board, the Image Sensor Board, the IR LED Board, and the Ambient Light Sensor Board are all manufactured in Taiwan. The manufacturing of these PCBAs involves complex surface mount technology ("SMT") processing of the PCBAs. This SMT process includes placement and soldering of numerous individual components onto a bare PCB, thereby creating functional PCBAs that results in a substantial transformation of the components. The final steps, which consists of assembly process, testing, and packaging, occur in either Vietnam or Thailand.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
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 in order to render such other country the 'country of origin' within the meaning of this part."
The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982).
This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993).
Based on the facts presented, it is the opinion of this office that the PCBAs, which are made in Taiwan for both the Verkada dome and fisheye security cameras, contribute to the main functionality of the finished products. The complex SMT manufacturing production of the PCBAs, which includes placement and soldering of numerous individual components onto a bare PCB, creates a functional PCBA that results in a substantial transformation of the components to produce PCBAs of Taiwanese origin. Furthermore, the assembly process performed in Vietnam or Thailand, would not substantially transform the PCBAs of Taiwanese origin into a new and different article of commerce with a name, character, and use distinct from that of the exported good. Accordingly, the subject dome and fisheye security cameras, would be considered a product of Taiwan for origin purposes at the time of importation into the United States.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in anyway, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Lisa Cariello at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division