CLA-2-85:OT:RR:NC:N2:220
Brenda Jacobs
Jacobs Global Trade & Compliance LLC
4134 N. River Street
McLean, VA 22101
RE: The country of origin of a battery charger
Dear Ms. Jacobs:
In your letter dated December 18, 2019 you requested a country of origin ruling on behalf of your client, Hong Kong Productivity Council.
The merchandise under consideration is identified as the Smart Charger PSJ503, which is described as a 12V and 750mA lead-acid battery charger that consists of a plastic enclosure containing a printed circuit board assembly (PCBA), an electrical plug, and a cable with a connector on the end. The battery charger, which is intended to be connected to a vehicle battery via a clamp cable, is programmable and charges the attached battery via three modes: bulk charge, absorption mode, and float mode. In your request, you provide two scenarios detailing where the battery charger is produced and assembled as detailed hereafter.
In the first scenario, you state that the subject battery charger is produced in China by surface mounting more than 50 individual components of various origins, such as resistors, capacitors, diodes, fuses, etc. onto a bare printed circuit board. Once the PCBA is manufactured, it is tested and exported to Vietnam where it is mounted inside a plastic enclosure and the output cable and male connector are attached. Prior to export from Vietnam, the battery charger is tested and packed with two cable assemblies.
In the second scenario, you state that the subject battery charger is produced in Vietnam by surface mounting more than 50 individual components of various origins, such as resistors, capacitors, diodes, fuses, etc. onto a bare printed circuit board. Once the PCBA is manufactured, it is tested and exported to China where it is mounted inside a plastic enclosure and the output cable and male connector are attached. Prior to export from China, the battery charger is tested and packed with two cable assemblies.
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.”
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).
With regard to the origin of the subject battery charger in Scenario 1, it is the opinion of this office that the assembly of the PCBA in China by soldering the individual components onto the bare board results in a substantial transformation of the components to produce a PCBA of Chinese origin. The PCBA, which is exported to Vietnam to be incorporated into a plastic housing and to have wires attached, is not substantially transformed into a new and different article of commerce with a name, character, and use distinct from the article exported from China. In our view, the PCBA, which converts mains power to 12 VDC to be applied to a battery, imparts the essence of the charger. Thus, the Smart Charger PSJ503 as described in Scenario 1 is considered a product of the China for origin and marking purposes at the time of importation into the United States.
Likewise in Scenario 2, it is the opinion of this office that the assembly of the PCBA in Vietnam by soldering the individual components onto the bare board results in a substantial transformation of the components to produce a PCBA of Vietnamese origin. The PCBA, which is exported to China to be incorporated into a plastic housing and to have wires attached, is not substantially transformed into a new and different article of commerce with a name, character, and use distinct from the article exported from Vietnam. In our view, the PCBA, which converts mains power to 12 VDC to be applied to a battery, imparts the essence of the charger. Thus, the Smart Charger PSJ503 as described in Scenario 2 is considered a product of the Vietnam for origin and marking purposes at the 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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division