MAR-2 OT:RR:NC:N2:209
Dan Swartz
Crane Worldwide Logistics LLC
26533 Danti Court
Hayward, CA 94545
RE: The country of origin of fiber optic cable
Dear Mr. Swartz:
This is in response to your letter dated September 6, 2018, requesting a ruling on behalf of your client, Amphenol Corporation, regarding the country of origin and marking requirements for an imported fiber optic cable.
Amphenol manufactures fiber optic cable in the United States. The cable is wound onto a spool and is exported to the China. The fiber optic cable may consist of one or more fiber optic fibers. The fibers are thermoplastic coated for protection.
In China, the cable is cut to length according to product specifications. Each end of the cut cable is threaded through a holder where approximately two inches of the sheathing is removed from each end of the cable. Any exposed fiber is cut off and the plastic jacketing of the fiber optic cable is removed. The exposed fiber is cleaned, measured, threaded through, and glued to a connector. China originating plastic connectors are attached to the cut ends of the cables. China originating ceramic ferrules are also inserted to the ends of the fiber optic cables. The ferrules have a hollow center and act as a tight ring to hold the fiber ends together and reduce the distortion of light. The connectors are placed into a finishing machine, where the fiber ends are automatically beveled and polished. Metal springs are inserted into the connector and spot welded into place. The connectors are cleaned and tested. As part of the finishing process, the cable will be subjected to heat shrinking centered over a furcation point. China originating dust caps are then added to the ends of the connectors. The finished cable is placed into China originating bags, boxes, or other forms of packaging, and sent back to the United States. The imported finished cable is to sold and distributed to U.S. and foreign customers.
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.”
For tariff purposes, the courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
Based upon the facts presented and the pertinent authorities, it is the opinion of this office that the U.S.-origin fiber optic cable exported to China and processed in China as described above, is not substantially transformed in China into a new and different article of commerce with a name, character, and use distinct from the article exported. Therefore, the fiber optic cable with connectors is considered a product of the United States for marking purposes.
Accordingly, the fiber optic cable with connectors will not be required to have any country of origin marking pursuant to 19 U.S.C. 1304 when imported into the United States.
Whether an article may be marked with the phrase “Made in the USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division