OT:RR:NC:N2:220

John McKenzie
Baker & McKenzie LLP
2 Embarcadero Center
San Francisco, CA 94111

RE: The country of origin of a laptop

Dear Mr. McKenzie:

In your letter dated March 7, 2025, you requested a country of origin ruling on behalf of your client, Acer Inc.

The merchandise under consideration is identified as the Notebook Computer, Model Aspire AG15-71P (Aspire), which is described as a laptop personal computer (PC) equipped with a motherboard printed circuit board assembly (PCBA), processor, memory, 15.6” LCD display, solid state storage device (SSD), wireless networking, webcam, lithium battery, and integrated keyboard/touchpad. The Aspire laptop PC, which is imported with the Windows operating system installed and is accompanied by its power adapter, has two USB-A sockets, two USB-C sockets, an audio socket, and an HDMI port.

In your letter, you describe the motherboard PCBA as being manufactured in Vietnam by the surface mounting of numerous components, such as integrated circuits, capacitors, diodes, resistors, etc. onto a bare printed circuit board. After the motherboard is manufactured, you state that the Vietnam and/or Malaysian origin processor, the Taiwan and/or Korean origin memory, and the Taiwan origin SSD are inserted and mounted onto the motherboard where it is then is tested. Once testing is complete, the motherboard subassembly is shipped to China where the assembly of the Aspire laptop PC is completed by inserting the motherboard and various subassemblies of Chinese origin, such as the LCD display, the fan, the keyboard, the camera, the touchpad, the battery, and the antenna, into a housing by attaching cables, fastening with screws, arranging and alignment, and snap-fitting together to produce a functional automatic data processing machine.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).

Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” 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 the marking laws and regulations.

A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).

Regarding the origin of the Aspire laptop PC, the assembly of the PCBA in Vietnam by soldering the individual components of various origins onto a bare printed circuit board results in a substantial transformation of those components to produce a motherboard of Vietnamese origin. Furthermore, it is the opinion of this office that the motherboard PCBA establishes the function of the Aspire laptop PC because it is the article within the assembly that houses and controls the interconnection of the processor CPU, memory, and contains the BIOS that enables the ADP machine to function. Lastly, the assembly work conducted in China by inserting, plugging, fastening, etc. does not substantially transform the motherboard PCBA into a new and different article. As a result of the forgoing, we find that the Notebook Computer, Model Aspire AG15-71P, is considered a product of Vietnam for origin and marking purposes at 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