MAR-2-85:OT:RR:NC:N2:209
Chunhui Cai
Gpixel Changchun Optotech Inc.
No. 588 Yingkou Road
Economic and Technological Development Zone
Changchun 130033
China
RE: The country of origin and marking of a CMOS image sensor from China
Dear Mr. Cai:
In your letter dated September 26, 2019, you requested a country of origin marking ruling.
The item concerned is a CMOS image sensor. This sensor is designed by Gpixel Changchun
Optotech, Inc. (Gpixel) in China. That detailed design is transferred to a wafer manufacturer in Israel where the wafer is produced. The Israeli wafer contains several silicon dies Each silicon die is a fully functional integrated circuit that can collect photons, convert and amplify the photon signal, and output it as a digital signal.
After the wafer is manufactured in Israel, Gpixel imports it into China to be tested/inspected by Gpixel. Next, the wafer is exported from China to Japan for the assembly of the sensors.
In Japan the wafers are assembled into the final sensor assembly. Japanese origin ceramic packages and glass lids, which are designed in China, are used in the final assembly process. The ceramic package consists of several layers, each layer containing metal routing. The main function of the ceramic package is to connect the pads of the silicon die to the pins/pads of the ceramic package, which can be soldered or connected to the printed circuit board later. The ceramic package also provides protection to the silicon die against mechanical shock, vibration, dust and contamination. The glass lid is attached to the ceramic package, either by epoxy or tape. It provides protection against dust and contamination, and it also transmits the light signal to the silicon die with little reflection. In Japan the wafers are diced (separated into individual I/C chips), glued into the ceramic packages, wire bonded, and the glass lid is attached.
The assembled sensors are exported from Japan to China for final inspection and testing. The CMOS image sensors will be exported from China to the United States for use in scientific applications.
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, it is the opinion of this office that the Israeli wafers containing the completed integrated circuits do not undergo a substantial transformation as a result of the manufacturing process that takes place in Japan. They retain their identity as integrated circuits with a predetermined end use. Therefore, since these items do not undergo a substantial transformation as a result of the Japanese assembly process, the country of origin of the finished CMOS image sensors will be Israel and the sensors must be marked accordingly at time of importation into the United States.
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 Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division