CLA-2-90:OT:RR:NC:N1:105
Ben Story Avius America LLC 10162 Love Story Street Winter Garden, FL 34787 RE: The tariff classification and country of origin of a button counter
Dear Mr. Story:
In your letter dated January 24, 2025, you requested a tariff classification and country of origin determination ruling. Descriptive literature was provided for our review.
The item under consideration is described as Avius Feedback Buttons (product number AVFB-001), which is a device that records button presses and periodically uploads the data using a cellular connection. The purpose of each button is to measure (count) a customer’s rating of a particular aspect of a business they have experienced, in this case, restroom cleanliness. The counter contains three different colored buttons that represent various emotions: a green button (positive), a yellow button (neutral), and a red button (negative). The buttons can only be used as a counter and cannot function independently for any other purpose. The information provided by the device is simply a tally of the number of each different button presses, as well as a timestamp for each button press. The device can provide the counts on the device itself and can store the data locally on the device. Additionally, the information from the device can be uploaded onto a reporting system for owners of the product to log into and report on the feedback they are receiving. The information can be displayed as charts as well as the raw data. Further, the number of button presses can be displayed as percentages, for example, between 12 pm - 4 pm, 80% of respondents selected “good,” etc. This is periodically uploaded to servers where the data is stored more permanently via the installed SIM card. The device cannot perform any analysis of the data itself.
The applicable subheading for the Avius Feedback Buttons (product number AVFB-001) will be 9029.10.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Revolution counters, production counters, taximeters, odometers, pedometers and the like; speedometers and tachometers, other than those of heading 9014 or 9015; stroboscopes; parts and accessories thereof: Revolution counters, production counters, taximeters, odometers, pedometers and the like: Other.” The general rate of duty will be free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9029.10.8000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 9029.10.8000, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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/.
Regarding the origin of the Avius Feedback Buttons, the printed circuit board assembly (PCBA) is constructed in China using surface mount technology (SMT). Most of the components used in the SMT are also of Chinese origin including resistors, capacitors, cathodes, diodes, transistors, etc. Additional Chinese origin components include the E-clip, case gasket, light pipe, switch gasket, front case, rear case, switch cap, wall bracket, battery, antenna, microcontroller unit, buzzer, hall effect magnetic sensor, and printed circuit board (PCB). United Kingdom (UK) components include the rear mount screws, security screw, PCB screw, and blister sticker that is attached to the front of the device. Additional minor components include some capacitors from Mexico, crystals from Japan, flash and surface mounted devices (white) from Taiwan, and electrostatic protection devices and connectors from Malaysia. The manufacturing begins in China where all case parts are manufactured via plastic injection molding. The PCB is manufactured and surface mounted components are applied creating a PCBA. In China, the microcontroller is manufactured but has not been programmed when it is shipped to the UK. It contains only the default ST Bootloader that allows programming the rest of the flash. All of the items are then shipped to the UK where the final components are applied to the PCB and the PCB is provisioned with UK developed firmware and activated. The PCBs and other parts are then assembled into their final form using the various screws and clips. This includes the battery and antenna being connected to the PCB, the SIM card being installed, assembly of the switch caps and application of the stickers with the smiley faces, and applying the screws to the case and rear bracket. Finally, the assembled units are tested and then put into a shutdown state ready for shipping. 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).
In regard to the country of origin of the Avius Feedback Buttons (product number AVFB-001), it is our opinion that the assembly process performed in the UK is not considered complex and does not constitute a substantial transformation. The PCBA surface mount technology in China changes the PCB to a PCBA with the capabilities to perform as a button counter. While additional firmware is uploaded in the UK, all of the necessary components (minus a few screws) are already available in China, albeit as an unassembled article. The individual Chinese components, including the PCBA, cannot be used for any other purpose than with the Avius Feedback Buttons. Accordingly, the country of origin of the Avius Feedback Buttons will be China, which is where the PCBA and other necessary components are manufactured.
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 Jason Christie at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division