OT:RR:NC:N2:220
Shinobu Ito
Global Marketing Manager
Hagiwara Solutions Co., Ltd.
2F, Kudan First Place, 4-1-28, Kudankita
Tokyo, 102-0073
Japan
RE: The country of origin of a ruggedized tablet computer and the applicability of certain trade remedies under Section 301
Dear Mr. Ito:
In your letter dated January 14, 2021 you requested a country of origin ruling.
The merchandise under consideration is identified as the Super Light Weight Rugged Tablet PC (Tablet), which is described as a portable personal computer that consists of a 10.1-inch capacitive touchscreen display, 4 GB memory, an internal storage of 64GB, an external micro-SD slot, a Quad Core processor, wireless and Bluetooth capabilities, and a built-in microphone, speaker, and camera. The tablet weighs 795 g and is drop shock, water, and dust resistant. Based on the information provided, the Tablet is imported with the Windows operating system (OS) preinstalled and is considered a portable automatic data processing (ADP) machine.
In your request, you state that the Tablet is manufactured in China. Once the Tablet is made, it is imported into your factory in Japan where you will install the OS, apply labels, and pack the devices for export to the United States. As part of your request, you suggest that the Tablet is not subject to Section 301 additional duties for products of China. We disagree.
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 Tablet, in our view, and based on the process you describe, the Tablet is not substantially transformed in Japan by installing the OS or applying labels. The device is identified as a portable ADP machine upon export from China and remains a portable ADP machine upon export from Japan. Further, CBP has consistently held that loading software does not amount to programming, which involves writing, testing, and implementing code necessary to make the tablet function a certain way. See HQ H284523. Therefore, it is the opinion of this office that the described Super Light Weight Rugged Tablet PC, Model Number LZ-WA10/W1HS-EA, will have a country of origin of China for origin and marking purposes and is subject to Section 301 trade remedies 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