CLA-2-85:OT:RR:NC:N2:220

Andrea Abraham
Meeks, Sheppard, Leo & Pillsbury
4 Corporate Drive, Suite 292
Shelton, CT 06484

RE: The country of origin and applicability of Section 301 trade remedies of a fiber optic cassette

Dear Ms. Abraham:

In your letter dated August 21, 2019 you requested an origin ruling on behalf of your client, TR Manufacturing Inc.

There are three items under consideration that are identified as Optical Fiber/Cables Connector Modules (Cassettes), Part Numbers FBMC-SM-10N10120U, FB-MC-SM-10N24E024U, and CART-SHSY288MTP, which are each described as an enclosure containing a single fiber optic connector on one side and multiple fiber optic connectors on the opposite side. Inside the Cassettes, a fiber optic harness is attached to the inside of the single connector and each individual fiber is attached to a connector on the opposite side. The difference between the three types of Cassettes is the number of fibers being connected, the type of connectors being used, and the input/output orientation of the single connector. Similar to a patch panel, the Cassettes are used to facilitate the physical separation of an optical fiber cable into individual fiber connections and do not enhance, amplify, or alter the optical signal in any way.

As an initial matter, we would note that the Cassettes are properly classified under subheading 8536.70.0000, Harmonized Tariff Schedule of the United States (HTSUS). The assembly consists of fiber optic connections that mechanically aligns optical fibers end to end from a single multi-strand cable into multiple individual strands. It does not perform any other function, such as the amplification, regeneration or modification of a digital signal.

In your request, you provide two scenarios describing where the Cassettes will be assembled. In the first scenario, the Cassettes will be assembled in China and the second scenario the Cassettes will be assembled in Taiwan. You have identified the components for the three Cassette models as follows:

Part Numbers FBMC-SM-10N10120U and FB-MC-SM-10N24E024U consists of 12 LC fiber optic adapters, 1 MTP adapter, 1 MTP male connector, and 0.6 m fiber optic cable assembly, all of which are sourced from the United States. The enclosure, 24 LC connectors, the furcating tube, and the labels/packaging are sourced from China.

Part Number CART-SHSY288MTP consists of 24 MTP adapters, 24 MTP male connectors, and 13 m fiber optic cable assembly, all of which are sourced from the United States. The enclosure, the plastic cable organizer, the furcating tube, and the labels/packaging are sourced from China.

The production process is described as assembling the plastic connector bodies on the input and output side of the cassettes; inserting, processing and testing multiple fibers into the input-side ferrules and connectors; inserting the individual fibers into the ferrules and connectors on the opposite, outbound-side of the cassette; and testing. Depending on the scenario, in China or Taiwan the U.S. origin optical fibers will undergo an assembly process where the other components are added to the optical fiber(s) to create a connection module. The assembler will prepare the internal fibers or cables by joining them with the ferrules and adding a connector housing to the end of the fiber/ferrule subassembly. The connectorized cable and individual fibers are then clipped into their respective input or output connector housings.

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; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.”

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).

In our opinion, the assembly process of joining the individual fibers to a connector and inserting the connectors into an enclosure is basic and does not result in a substantial transformation of the individual components. Furthermore, prior to assembly, the individual components have a pre-determined end use that is not changed as a result of the operations performed. The components themselves are not transformed in China or Taiwan into a new and different article of commerce with a name, character, and use distinct from the article exported.

Regarding the origin of the assembled Cassettes, it is the opinion of this office that the fiber optic cable provides the essence of a finished Cassette. In both scenarios, the fiber optic cables are not substantially transformed by the addition of the connectors and the assembly operations are not complex enough so as to transform the components into a new article. Therefore, it is the opinion of this office that the three Cassettes, Part Numbers FBMC-SM-10N10120U and FB-MC-SM-10N24E024U, and CART-SHSY288MTP, are considered a product of the United States for origin and marking purposes at the time of importation into the United States.

In your letter, you also request a determination on the applicability of Section 301 trade remedies for the three Cassettes described in each scenario. Based upon the facts presented, it is the opinion of this office that Part Numbers FBMC-SM-10N10120U, FB-MC-SM-10N24E024U, and CART-SHSY288MTP are not be subject to the Section 301 trade remedies for both scenarios.

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 Karl Moosbrugger at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division