OT:RR:NC:N2:208
Ms. Feng Peng
Zhejiang Uniview Technologies Co., Ltd.
South Tower, Building 10, Wanlun Science Park
88 Jiangling, Hangzhou
P.R. China 310051
RE: The country of origin of a camera and a network video recorder
Dear Ms. Peng:
In your letter dated September 14, 2022, you requested a country of origin ruling determination.
The first item under consideration is referred to as a surveillance camera, Part Number 0235C3Q2. This camera can record and capture both still and digital images onto an internal SD card. The camera consists of a lens, a sensor board, an encoding board, a power board, a shell, and cables. The sensor board is a printed circuit board assembly (PCBA) that can transform the optical signal from the lens to the electrical signal. The encoding board is also a PCBA that can encode electrical signal of the video or image data. Last, the power board is a PCBA that provides power to the camera. Based on the information provided, the PCBAs provide the main function of the camera.
The manufacturing process of the three PCBAs occurs in India, where the bare printed circuit board (PCB) of Chinese origin is first inspected through a 3D solder paste inspection. The PCB is populated with over 100 electrical components of Chinese, Taiwanese and U.S. origin, by using Surface Mount Technology (SMT). Next, the PCBA subassembly undergoes a reflow process and wave soldering, which permanently secures the electrical components onto the PCB. The PCBA subassembly passes through an automated optical inspection (AOI), then it goes through X-Ray inspection, and testing. Lastly, the PCBA subassembly goes through a final packing process for importation into China for final assembly.
In China, the Chinese origin lens is aligned and bonded with the sensor board with screws or glue and is attached to the housing. Then, the other PCBAs and cables are added, to produce a finished camera. Next, the camera goes through a series of tests such as waterproof test, shock drop test and environment stress screening test, before the camera is packaged for exportation to the U.S.
The second item is the Network Video Recorder (NVR), Part Number 0235C328. The NVR consists of a PCBA, a panel, a shell, and hard disks. As per the information provided, the hard disks are not included at the time of importation into the United States. The PCBA and hard disks are both essential to process and store video data. The PCBA provides interfaces to replay, receive, and decode the video data.
The manufacturing of the PCBA occurs in India where the bare PCB of Chinese origin is first inspected through a 3D solder paste inspection. The PCB is populated with many electrical components of Chinese, Taiwanese and Japanese origin, by using an SMT process. Then, PCBA subassembly undergoes a reflow process and wave-soldering, which permanently secures the electrical components onto the PCB. Next, the PCBA subassembly passes an AOI and X-Ray inspection, before it is prepared for exportation to China for final assembly.
In China, the PCBA, shell and the housing are assembled to produce a finished NVR. Once that is complete, the finished product undergoes a series of inspections and is then packed for importation into the U.S.
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.
When considering a product that may be subject to antidumping, countervailing, or other safeguard measures, the substantial transformation analysis is applied to determine the country of origin. See 19 C.F.R. § 102.0; HQ 563205, dated June 28, 2006; see also Belcrest Linens v. United States, 741 F.2d 1368, 1370-71 (Fed. Cir. 1984) (finding that “the term ‘product of’ at the least includes manufactured articles of such country or area” and that substantial transformation “is essentially the test used…in determining whether an article is a manufacture of a given country”).
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 on the facts presented, it is the opinion of this office that the PCBAs that are made in India for both the surveillance camera and the NVR (imported without the hard disks), contribute to the main functionality of the finished products. The complex SMT manufacturing production of the PCBAs, which includes placement and soldering of numerous individual components onto a bare PCB, creates a functional PCBA that results in a substantial transformation of the components to produce PCBAs of Indian origin. Further, in this case all of the PCBAs are made in India and the assembly process performed in China, would not substantially transform the PCBAs of Indian origin into a new and different article of commerce with a name, character, and use distinct from that of the exported good. Accordingly, the surveillance camera, Part Number 0235C3Q2 and the Network Video Recorder (NVR), Part Number 0235C328, would be considered a product of India 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 Lisa Cariello at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division