CLA-2-OT:RR:NC:N2:220
Steven Sanders
Sanders Brokerage Services
1050 B. Street
Blaine, WA 98231
RE: The tariff classification and country of origin of the Nuance Select
Dear Mr. Sanders:
In your letter dated November 14, 2024, you requested a tariff classification and country of origin determination ruling on behalf of your client, Radial Engineering USA Inc.
The merchandise under consideration is identified as the Nuance Select, Part # R800-2026-00, which is described as an electrical controller that is used to control the selection of audio input and output devices. The Nuance Select consists of a metal enclosure having four printed circuit board assemblies (PCBAs), numerous user interface switches, and multiple input/output sockets. In use, the Nuance Select allows users to select and switch between different sources and outputs of audio monitors and speakers.
The applicable subheading for the Nuance Select will be 8537.10.9170, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity…: For a voltage not exceeding 1,000 V: Other: Other: Other”. The general rate of duty will be 2.7 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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).
Your submission identifies the four PCBAs as the Main PCBA, the Top PCBA, the Headphone PCBA, and the Potentiometer PCBA. Each of the PCBAs, which you state are manufactured in Taiwan, contain numerous switches, electrical connectors, relays, sockets, and other electrical connection apparatus. Also manufactured in Taiwan are the power supply and the power cord. The enclosure and the control knobs are said to be manufactured in China, while the enclosure feet, wire, and various fasteners/consumables are from Canada and/or the United States. You describe the assembly process as occurring in Canada by attaching electrical cables to the PCBAs, inserting the PCBAs into the enclosure, securing the boards with fasteners, connecting additional wires and cables, and securing the front panel with fasteners.
Regarding the origin of the Nuance Select, it is the opinion of this office that the assembly process in Canada, as described, does not effect a substantial transformation on any of the PCBAs that are incorporated into the device. Furthermore, in our view, the PCBAs establish the character and function of the Nuance Select because they are the components within the device that control and switch audio inputs and outputs. As a result, the country of origin for the Nuance Select, Part # R800-2026-00, will be Taiwan upon 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