CLA-2-85:OT:RR:NC:N2:220
Angie Courteau
LZB Manufacturing, Inc.
One La-Z-Boy Drive
Monroe, MI 48162
RE: The country of origin of a power supply
Dear Ms. Courteau:
In your letter dated March 10, 2021 you requested a tariff classification ruling.
The merchandise under consideration is identified as the TP2 Series Power Supply, which is described as power supply that is intended for use in upholstered motion furniture, such as recliners, loveseats, and sofas. The TP2 Series Power Supply is described as a steel enclosure containing a printed circuit board assembly (PCBA), a DC socket at one end and an AC cable affixed at the other end. The subject power supply functions to convert AC input voltage to 29 VDC electrical output that is supplied directly to the electrical apparatus within the upholstered motion furniture. You state that the subject power supply is manufactured in Vietnam from component materials that are sourced from China and Vietnam.
In your request, you state that the assembly process of the subject power supply occurs in Vietnam and begins with a Chinese origin bare printed circuit board (PCB) and electrical components, such as resistors, capacitors, integrated circuits, fuses, diodes, etc., soldered together by means of a surface mount and wave soldering process. After the PCBA is manufactured, it undergoes a quality inspection prior to mounting within an enclosure, where it is secured with screws. The finished power supply is tested, the AC cable is attached, the labels are applied to the enclosure, and the device is packaged for exportation to the United States.
With regard to the origin of the power supply, 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.
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).
Regarding the country of origin of the power supply, in our view the assembly of the PCBA by surface mounting integrated circuits, transistors, resistors, transformer, capacitors, etc. onto a bare PCB results in a substantial transformation of the individual components to produce a PCBA of Vietnamese origin. Moreover, it is the opinion of this office that the PCBA is the essence of the power supply because it is the article within the assembly that converts electricity and supplies it to the electrical apparatus within the upholstered motion furniture. Based on the information provided, our view is that the components that make up the power supply are transformed in Vietnam into a new and different article of commerce with a name, character, and use distinct from the articles exported from China. As such, the TP2 Series Power Supply is considered a product of 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