CLA-2-85:OT:RR:NC:N2:209
Deanna H. Gresens
American Lamprecht
2218 Landmeier Road
Elk Grove Village, IL 60007
RE: The classification and country of origin of a safety light curtain
Dear Ms. Gresens:
In your letter dated July 7, 2020, you requested a classification and country of origin ruling on behalf of CEDES Corporation of America.
The item concerned is referred to as the “cegardMini light curtain”. This item is an optoelectrical protective device used in elevator door applications. It incorporates a series of optical light emitting diodes and receiver elements. The emitting and receiving elements are positioned so that the optical transmission from the emitter is directed at the light sensitive areas of the receiver. This optically coupled light transmission forms a type of connection between the two elements. This device utilizes 32 transmitting and receiving elements which are arranged to form an array of light beams across the width of elevator door opening. An obstruction of any of these beams sends an output signal to the elevator door control to prevent the door from closing.
The applicable subheading for the “cegardMini light curtain” will be 8541.40.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals; parts thereof: Other: Optical coupled isolators”. The rate of duty will be free.
Regarding your country of origin determination request, it is stated that there are 4 core subassemblies which make up the item concerned:
emitter(Tx) OLS Optical LED modules (Qty 32)
emitter(Tx) control unit (Qty 1)
receiver(Rx) optical receiver modules (Qty 32)
receiver(Rx) control unit (Qty 1)
Each of these subassemblies will be manufactured within Switzerland. All software is programmed into the SMD modules and controllers in Switzerland. These completed subassemblies are the primary elements of the cegardMini and are identifiable as such. They cannot be used for any other function, nor utilized in any other product.
These subassemblies are shipped to China for the final assembly process. Within China the Tx/Rx optical modules and control unit subassemblies are inserted into a housing, connection wiring is installed and an epoxy potting is applied to produce the final assembly. Finally the products are tested.
The additional components (housing, housing cover, wires, polyurethane filler and fasteners) used to produce the final assembly are mostly of China origin, but make up a small portion of the content.
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 Swiss origin Tx/Rx optical modules and control unit subassemblies, which are the dominant components of this device, do not undergo a substantial transformation as a result of the processing that takes place in China. The Tx/Rx optical modules and control unit subassemblies have a predetermined end use when exported from Switzerland and they retain that identity after the processing that takes place within China. Therefore, since a substantial transformation does not occur as a result of the Chinese processing, the country of origin of the finished “cegardMini light curtain” will be Switzerland for origin and marking purposes at time of importation into the United States.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
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