CLA-2-85:OT:RR:NC:N2:212
Julie Li
Taiwan Master Hill Technology Company, Ltd
Number 5, Keyun North Road
Huwei Township
Yunlin
China
RE: The country of origin of USB-C Cable
Dear Ms. Li:
In your letter dated May 26, 2020, you requested a country of origin ruling.
The merchandise under consideration is identified as an Infinitive braided USB-C cable. The subject cable is comprised of a 9-foot length of insulated cable affixed at one end with a standard USB-A connector and a USB-C connector at the other. The cables are designed to connect a variety of mobile devices to their host units or charging stations.
In your request, you illustrate the following manufacturing process as occurring in Taiwan. The process begins with Taiwanese originating copper wire being drawn, twisted, stranded, jacketed, and extruded. The wire is then insulated with material sourced from China and cut to the desired length. Chinese origin connectors are then added to each end prior to the cable being packaged for shipment to the United States.
The “country of origin” is defined in 19 CFR 134.1(b), in pertinent part, 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.”
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).
Further, in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade (“CIT”) interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer, the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight, and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted, “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an example, National Hand Tool Corp. v. United States, 16 C.I.T. 308, 310, aff’d 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article.
Regarding the origin of the subject cables, it is the opinion of this office that the Taiwanese origin cable imparts the essential functional component of the finished cable. The addition of the Chinese origin connectors does not substantially transform the article into a new and different article of commerce with a name, character and use distinct from the individual components. Based upon the facts presented with this case, it is the opinion of this office that the origin of the Infinitive braided USB-C cable is Taiwan.
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