CLA-2-85:OT:RR:NC:N4:410
Mr. Bao Tai Hwang
HEP Group USA, Inc.
6740 Los Verdes Drive, Unit 6
Rancho Palos Verdes, CA 90275
RE: The tariff classification and Country of Origin Marking of the LED tube from Taiwan
Dear Mr. Hwang:
In your letter dated January 19, 2019, you requested a tariff classification and a country of origin marking ruling. A sample was submitted with your ruling request and will be returned to you.
The merchandise under consideration is identified as the LED Tube. The item is an LED (light-emitting diode) straight linear tube lamp used in a linear luminaires with G13 bases to replace traditional fluorescent tube in the indoor light fixtures. It consists of end caps, an aluminum heat sink/PCBA (printed circuit board assembly), LED lamps and a translucent plastic tube.
The applicable subheading for the LED Tube will be 8539.50.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical filament or discharge lamps…; Light-emitting diode (LED) lamps; Straight linear tube.” The rate of duty will be 2 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
You state that the end caps and aluminum heat sinks/ PCBA are of Chinese origin and the LED lamps, plastic tubes, the packaging and labels are of Taiwanese origin. You further illustrate the assembly operation processing steps in Taiwan as follows:
1) Insert the LED PCBA into plastic tube
2) Connect the end caps to the LED PCBA
3) Push secured the ends to the plastic tube
4) Place the tube labels on the tube
5) Perform Functional/Burned-in and Aging/Reliability Tests and FQC inspection
6) Labelling and final package
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”. For tariff purposes, the courts have held that a substantial transformation occurs if a new and different article emerges having a distinctive name, character or use.
The assembly operations performed in Taiwan substantially transforms the Chinese originating components/materials into Taiwanese products. The assembly in Taiwan of the individual components to produce the finished LED tube creates a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Taiwan.
Based on the information submitted, we are of the opinion that the processing performed in Taiwan with respect to the LED tubes does constitute a substantial transformation of all the imported materials into "products of" Taiwan. Therefore, the "product of" requirement has been satisfied. For tariff purposes, it is of the opinion of this office that the country of origin for the LED Tubes will be Taiwan.
The submitted pictures and information show that each of the LED Tubes has a product information label and words “Made in Taiwan” pasted in the tube. The LED Tubes are packed in a carton with 25 units. A label measuring approximately 4.33 inches x 4.45 inches containing product information and the words “Made in Taiwan” is affixed on the outside of the carton.
You state that the ultimate purchasers of subject LED Tubes in the U.S. are contractors who will buy the merchandise in cartons with the label showing “Made in Taiwan”.
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.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
Applying the Marking Rules set forth in section 304 of the Tariff Act of 1930, as amended and Part 134 of the CBP Regulations, we are of the opinion that the submitted sample does satisfy the marking requirements of 19 CFR 134 and 19 U.S.C. 1304.
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 Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division