CLA-2-85:OT:RR:NC:N2:212
Anke Graefe
Ableton AG
Schoennhauser Allee
Berlin 10119
Germany
RE: The tariff classification and country of origin of an electronic music controller
Dear Ms. Graefe:
In your letter dated April 14, 2025, you requested a tariff classification and country of origin determination
ruling.
The merchandise under consideration is identified as the Push 3 Tethered, which is described as an electronic
music controller used in the creation and processing of music. You state that the subject controller acts as a
user interface when connected to a personal computer. When connected to the PC and while utilizing the
Ableton Live software, the controller is used to create, sample, and process music as well as control lighting.
The subject music controller is comprised of multiple Printed Circuit Board Assemblies (PCBA), an LCD
display, and various buttons, toggles, and switches within a plastic and aluminum case. The back of the unit
has multiple ports for input and output devices including USB, audio, MIDI, among others. These input and
output devices can include a PC, microphone, amplifiers, and musical instruments.
Though the subject matter of this request is country of origin, you note that the subject devices are correctly
classified under subheading 8471.80.10, Harmonized Tariff Schedule of the United States (HTSUS). We
disagree.
In our view, the principal function of the subject device is electronic music control and processing. In
Digidesign Inc v. the United States, Court Number 08-00331, these particular functions were found to be
classified under heading 8543, HTSUS, and not, even if connected to a personal computer, under heading
8471, HTSUS. As such, classification within the suggested subheading is not applicable.
The applicable subheading for the Push 3 Tethered will be 8543.70.9860, HTSUS, which provides for
“Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this
chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Other.” The general rate of duty
will be 2.6% ad valorem.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong
and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other
countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must
report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to
subheading 8543.70.9860, HTSUS, listed above.
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/.
In your request, you describe the manufacturing process begins in Vietnam with the creation of the four
PCBAs, which are described as the Main PCBA, the Touch PCBA, the Audio PCBA, and the Jogwheel
PCBA. You state that all four are manufactured via Surface Mount Technology (SMT). The Main PCBA
houses the primary functionality of the device and is populated with the microprocessor, switches, encoders,
potentiometers, and connectors. This board further directs all communication between the subsidiary boards.
The Touch PCBA includes the sensors that allow for the user to interact with the device. The Audio PCBA
contains the input and output connectors allowing the user to connect various devices. The Jogwheel PCBA
is a small assembly enabling the Jogwheel to be used to interface with the device.
The PCBAs, after manufacture in Vietnam, are tested for functionality before they are shipped to China for
final assembly. In China, the PCBAs are mounted within the plastic and aluminum shell and various other
mechanical items are added including switches, buttons, knobs, and the like. The LCD is added before the
casings are screwed together and the device is cleaned and prepared for export to the United States.
When determining the country of origin for purposes of applying current trade remedies under Section 301,
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).
Regarding the origin of the subject controller, this office is of the opinion that the four PCBAs impart the
essential functional component of the finished product. Further, the process performed in China is not
substantially complex in order to change the PCBA components into a new and different article of commerce.
The process performed in Vietnam renders the end use of the PCBAs predetermined for origin purposes.
Based upon the facts presented, the country of origin of the Push 3 Tethered is Vietnam.
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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division