OT:RR:NC:N4:410
Stanley Zheng
Hanma Company Limited
No.67, Zhongsha West Road, Jianggao Town
Baiyun District, Guangzhou 510450 China
RE: The country of origin of an LED light
Dear Mr. Zheng:
In your letter dated March 4, 2024, you requested a country of origin ruling on an LED light.
The article at issue is identified as the LED light, part number 1292659. The LED lights are used in motor vehicles and other applications. Each LED light comprises a lens, reflector, PBCA light board containing six LEDs, sealing ring, and plastic housing/frames. The PBCA light board is made in Vietnam and the balance of the components are of Chinese origin. The PBCA light board represents approximately 40% of the total cost according to the Bill of Materials.
The PBCA light boards are manufactured in Vietnam, which starts with the production of the PCBA (printed circuit board assembly) via the SMT (surface mount technology) process. The SMT process involves mounting the main integrated circuit, as well as various capacitors, varistors, fuse and diodes, etc., which goes through the steps of inkjet printing, SPI (solder paste inspection), chip mounting, reflow soldering, high-low current test, parallel transplanting, cooling, gluing, AOI (automated optical inspection), lens chip mounting, electrical testing, darkroom testing, visual inspection, loading, etc. The PCBAs are populated with the LEDs to make the PBCA light boards (light source) in Vietnam during the process.
The PBC light boards are shipped to China where the Chinese origin components, i.e., lens, reflector, and housing (back shell), are assembled to make the finished LED lights.
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).
We are of the view that, although the significant number of the parts and components are made in China and the final assembly occurs in China, the PBCA light board (light source) is the single most important and critical component in the subject LED light. It possesses the predetermined end-use for the making of the LED light. The use of the article has already been pre-determined upon importation from Vietnam to China. The assembly operations performed in China do not substantially transform the Vietnam originating component(s) into Chinese products.The manufacturing process in China does not create a new and different article of commerce with a distinct character and use that is not inherent in the components imported into China. The component of the PBCA light board does not lose its individual identity as a result of the assembly process in China. Therefore, the country of origin of the LED light is Vietnam.
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 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 Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division