OT:RR:NC:N2:220
Jane Lee
D and S Industries (Philippines) Corporation
Unit 1-5 Orient Goldcrest
Suntrust Ecotown, Bldg. 2
Cavite
Philippines
RE: The country of origin of a power adapter set
Dear Ms. Lee:
In your letter dated February 22, 2024, you requested a country of origin ruling.
The merchandise under consideration is identified as the 6ft USB-C to C PVC Cable + Dual Port Wall Charger 20W (Power Adapter Set), Model Number AQ0727AA, which consists of a retail package containing a power adapter plug and a 6-foot electric cable. The 20W power adapter is rectangular in shape with a two-prong electrical plug on one side and two female sockets, namely a USB Type-A and a USB Type-C socket, on the other side. The 6-foot electric cable has USB Type-C male connectors on either end. The Power Adapter Set is intended to supply a charge to various types of USB enabled electronic devices.
In your submission, you state that the power adapter is comprised of materials from China, Taiwan, and the Philippines. The assembly process begins with the manufacturing of a printed circuit board assembly (PCBA) that occurs in the Philippines by soldering multiple components, such as integrated circuits, resistors, capacitors, diodes, a transformer, etc. onto a bare PCB via a surface mount and through-hole insertion process. The PCBA is then attached to a plastic housing by means of ultrasonic welding. The final product undergoes numerous testing procedures and visual inspection before it is packaged in a retail carton for export.
You also state the electric cable is made up from components that are sourced from Taiwan and the Philippines, where the copper conductor is said to be drawn in the Philippines. The cable is assembled in the Philippines by soldering the two Taiwan origin Taiwan origin USB Type-C connectors to the ends of the cable. The cable is then tested before it is packaged with the power adapter described above prior to export.
General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI's taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3.
GRI 3 (a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3 (b) or GRI 3 (c) taken in the appropriate order in which they are set out in GRI 3. GRI 3 (b) states in part that composite goods or sets, which cannot be classified by reference to GRI 3 (a), are to be classified as if they consisted of the component that gives them their essential character.
The Explanatory Notes to the Harmonized Tariff System, although not legally binding, provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3 (b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without re-packing. Goods classifiable under GRI 3 (b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article.
The subject Power Adapter Set consists of two or more different articles that are, prima facie, classifiable in different headings. The set also consists of articles put up together to carry out a specific activity (i.e., charging personal electronics). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the Power Adapter Set is described within the meaning of "goods put up in sets for retail sale".
In accordance with GRI 3 (b), which states in part that goods put up in sets for retail sale, that cannot be classified by reference to GRI 3 (a), are to be classified as if they consisted of the component which gives them their essential character. In our view, the article that provides the essential character of the Power Adapter Set is the plug-in adapter that rectifies the electricity and provides power via the USB connections.
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).
Regarding the country of origin of Power Adapter Set, in our view the assembly of the PCBA in the Philippines by soldering the individual components onto the bare board results in a substantial transformation of the components to produce a PCBA of Philippine origin. Furthermore, it is the opinion of this office that the PCBA establishes the function of the electrical charging device because it is the article within the assembly that converts and supplies electricity to electronic devices via the USB sockets. As such, we find that the components that make up the Power Adapter Set are transformed in the Philippines into a new and different article of commerce with a distinct name, character, and use. Thus, the 6ft USB-C to C PVC Cable + Dual Port Wall Charger 20W, Model Number AQ0727AA, is considered a product of the Philippines for origin and marking purposes at the time of importation into the United States.
Importations of this product may be subject to the provisions of Section 133 of the Customs Regulations if they copy or simulate a registered trademark, trade name or copyright recorded with U.S. Customs and Border Protection. If you are an authorized importer of the product, we recommend notifying your local Customs office prior to importation.
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 any way, 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 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