OT:RR:NC:N2:220
Jeremy Page
Page Fura, P.C.
939 W. North Avenue
Chicago, IL 60642
RE: The country of origin of a brake controller and the applicability of certain trade remedies under Section 301
Dear Mr. Page:
In your letter dated December 16, 2020 you requested a country of origin ruling on behalf of your client, Curt Manufacturing LLC.
The merchandise under consideration is the TriFlex proportion-based brake controller (controller), which is described as a plastic housing incorporating a printed circuit board assembly (PCBA) having manual braking adjustments, an LED readout, and a wiring harness. Mounted onto the PCBA are two 12V relays, a selector switch, two sliding potentiometers, and various integrated circuits/electronic components. The controller is intended to be mounted inside a vehicle for the purpose of controlling the brakes of a towed trailer.
The components and subassemblies that make up the controller are sourced from China, Mexico, Philippines, and the United States. The PCBA, the relays, the switch, the potentiometers, the LED module, and various electronic components are sourced from China and imported into Mexico. The plastic housing, insulated wire, and various hardware is sourced from the United States, while the switch, assorted plastic components, and electrical terminals are of Mexican origin.
Based on the information provided, the PCBA is imported into Mexico from China in a semi-assembled state. The PCBA from China consists of a printed circuit board with mounted integrated circuits, resistors, capacitors, etc. However, you describe PCBA as being unfinished and not programmed with the necessary firmware to function.
In your request, you describe the assembly of the controller occurring in Mexico by soldering the two slide potentiometers, a fuse, a DIP switch, and the two relays onto the PCBA. Next, additional electrical components, such as the LED module, a MOSFET, and resistors, are soldered onto the PCBA. The wiring harness assembled and soldered onto the PCBA. The PCBA is programmed, tested, and mounted inside the housing along with the manual slide/thumbwheel operating mechanisms.
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 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).
Regarding the country of origin of the subject brake controller, in our view the assembly operations performed in Mexico, which consists of soldering the relays and other electrical components onto the PCBA, and then assembling them into a plastic housing, are complex and substantially transform the articles being assembled. Therefore, based upon the facts presented, the TriFlex proportion-based brake controller is considered a product of Mexico and is not subject to the additional duties under Section 301 of the Trade Act of 1974, as amended, upon 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