CLA-2-85:OT:RR:NC:N2:212
Victor Yeh
Protop International Inc.
10 F-8, No. 237, Sec. 1, Datong Rd.
Xizhi, New Taipei City 22161
Taiwan
RE: The country of origin of charging cables from Vietnam
Dear Mr. Yeh:
In your letter dated August 5, 2019, you requested a tariff classification ruling on behalf of your client, Walgreens Co.
The merchandise under consideration is described as a three-foot charge and sync cable. One end of the cable is equipped with a male USB connector while the other has a male lightning-style connector designed for use with various mobile devices. The cables are used to connect said devices to a variety of host units or charging stations.
You state that the cables are assembled in Vietnam using materials sourced from China and Vietnam. Insulated wire of Chinese origin is cut to length and affixed with a USB connector of Chinese origin and a lightning connector of Japanese origin. The finished products are then packaged for retail sale.
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 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).
With regard to the origin of the subject charge and sync cable it is the opinion of this office that the Chinese insulated wire imparts the essential character to the finished cables. While the Japanese origin connector is integral to the function of the finished cable, we find that its addition to the finished product in Vietnam does not substantially transform the Chinese parts into a new and different article of commerce with a name, character, and use distinct from the article exported. Based upon the facts presented, it is the opinion of this office that the origin of the subject charge and sync cable is China.
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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division