OT:RR:NC:N2:220
David Forgue
Barnes, Richardson & Colburn, LLP
303 East Wacker Drive
Chicago, IL 60601
RE: The country of origin of battery chargers
Dear Mr. Forgue:
In your letter dated July 19, 2024, you requested a country of origin ruling on behalf of your client, CTEK, Inc.
The first item under consideration is identified as the CTEK Battery Charger Model MXS 5.0, which is described as a 12V/5A smart battery charger consisting of a plastic enclosure having a main printed circuit board assembly (PCBA), LED indicators, and electrical cable/clamps. The MXS 5.0 battery charger features a mode selection and intelligent charging functions that is intended to charge lead-acid vehicle batteries.
The second item under consideration is identified as the CTEK Battery Charger Model Pro25S, which is described as a 12V/25A smart battery charger consisting of a plastic enclosure having a main PCBA, LED indicators, and electrical cable/clamps. The PRO25S battery charger features a mode selection and intelligent/diagnostic charging functions that is intended to charge lead-acid and lithium-ion vehicle batteries.
The third item under consideration is identified as the CTEK Battery Charger Model CT5 Powersport, which is described as a 12V/2.3A smart battery charger consisting of a plastic enclosure having a main PCBA, LED indicators, and electrical cable/clamps. The CT5 Powersport battery charger features a mode selection and intelligent/diagnostic charging functions that is intended to charge lead-acid and lithium-ion vehicle batteries.
The fourth item under consideration is identified as the CTEK Battery Charger Model Multi US 7002, which is described as a universal 12V/7A smart battery charger consisting of a plastic enclosure having a main PCBA, LED indicators, and electrical cable/clamps. The Multi US 7002 battery charger features a mode selection and intelligent charging functions that is intended to charge lead-acid vehicle batteries.
The fifth item under consideration is identified as the CTEK Battery Charger Model Lithium XS, which is described as a universal 12V/4.3A smart battery charger consisting of a plastic enclosure having a main PCBA, LED indicators, and electrical cable/clamps. The Lithium XS battery charger features a mode selection and intelligent charging functions that is intended to charge lithium-ion vehicle batteries.
In your letter, you state that the PCBAs for each model under consideration here are produced in Malaysia by surface mount/through-hole insertion soldering of various electronic components, such as resistors, capacitors, transformers, diodes, triodes, and integrated circuits, etc., onto a bare printed circuit board. Also in Malaysia, the PCBAs are loaded with firmware and tested prior to being sent to China. In China, the main PCBAs are assembled with the balance of parts and components that are all of Chinese origin, which include plastic covers, electrical cables, connectors, labels, etc., by inserting, gluing, screwing, and soldering. Once assembled in China, the battery chargers are tested and packaged for export.
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 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 battery chargers, in our view, the assembly of the PCBAs in Malaysia by soldering the individual components onto the bare board results in a substantial transformation of the components to produce PCBAs of Malaysian origin. Furthermore, it is the opinion of this office that the PCBAs, which function to convert the input voltage and control the charging of the attached batteries, establishes the essential character of the electrical charging function. In our view, the assembly processes performed in China, which consists of inserting, attaching, screwing, etc., are not complex and are considered basic assembly. As a result, we find that the Malaysian origin PCBAs are not substantially transformed in China into different articles of commerce with new names, characters, and uses. Thus, the CTEK Battery Chargers, Model MXS 5.0, Model Pro25S, Model CT5 Powersport, Model Multi US 7002, and Model Lithium XS are considered products of Malaysia for origin and marking purposes at the time of importation into the United States.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division