OT:RR:NC:N2:220

Morgan Mo
High Power Electronics Co., Ltd.
6F-6, No., 21, Lane 583, Ruiguang Rd
Taipei City
Taiwan

RE: The country of origin of a power supply.

Dear Mr. Mo:

In your letter dated June 9, 2021 you requested a country of origin ruling on behalf of your client, EVGA.

The item under consideration is identified as the Switching Power Supply, Model No. 600GD. The Power Supply is described as a steel enclosure containing a printed circuit board assembly (PCBA), a fan, connectors, and multiple output wire harnesses for connecting to various components within an automatic data processing (ADP) machine.

In your request, you state that the power supply is assembled in Vietnam by soldering components of various origins, such as resistors, capacitors, integrated circuits, fuses, diodes, etc., onto a bare PCB. Once the board is completed and function tested, the PCBA, which functions to convert the AC input voltage to multiple DC outputs for use within the ADP machine, is mounted inside an enclosure, a fan is installed, various wiring and connectors are attached, the power supply is tested, and the finished product is packaged for export to the United States.

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).

Based upon the facts presented, it is the opinion of this office that the assembly of the PCBA by surface mounting and through hole insertion of integrated circuits, transistors, resistors, transformers, capacitors, etc. onto a bare PCB and the final assembly operations result in a substantial transformation of the individual components into a new and different article of commerce with a new name, character, and use. As such, Switching Power Supply, Model No. 600GD, 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