OT:RR:NC:N2:209

Melissa Duffy
Fenwick & West LLP
733 Tenth Street ,Suite 400
Washington, DC 20001

RE: The country of origin of radio frequency (RF) front-end-modules. Correction to Ruling Number N346922

Dear Ms. Duffy:

This replaces Ruling Number, N346922, dated April 2, 2025, which contained a clerical error. The name of the requesting party was erroneously omitted from the ruling decision. A complete corrected ruling follows.

In your letter dated March 18, 2025, you requested a country of origin ruling on behalf of your client, GlobalFoundries Inc. and its U.S. based subsidiaries, GlobalFoundries U.S., Inc. and GlobalFoundries U.S. 2 LLC.

The items concerned are referred to as radio frequency (“RF”) front-end-modules (“FEM”). These devices are silicon on insulator (“SOI”) RF FEM integrated circuits (“ICs”). They are used in cellular and Wi-Fi applications. Each RF FEM contains multiple elements such as, transceivers, filters, amplifiers, oscillators and mixers.

The final product is a packaged integrated circuit which means that the IC chip has been mounted and encased in a format enabling their direct interface with other hardware. The package serves as a mechanical carrier of the integrated circuit die, protects the die against environmental effects (such as shock or moisture), and allows for the connection of the die to the customer’s printed circuit board to which it becomes attached in downstream manufacturing.

The RF FEM integrated circuit manufacturing process is divided into three basic phases:

(1) the front-end manufacturing process, which occurs in the United States, (2) the back-end package assembly process, which occurs in China, and (3) the final testing and finishing, which occurs in the United States.

The front-end manufacturing process determines all the inherent performance parameters of the RF FEM products. At the conclusion of the front-end manufacturing process, the RF FEM dice are complete, having their full operational capability. The RF FEM dice then undergo package assembly, followed by a final testing and finishing process.

The front-end manufacturing process which takes place within the United States comprises ten primary steps, some of which are repeated multiple times.

Within the United States, the process begins with a raw SOI substrate wafer originating from France, Japan, or the United States. The substrate then undergoes multiple photolithographic and chemical processing steps to transform the wafer into a set of RF FEM integrated circuits (i.e., chips or die). The front-end processing that takes place within the United States include the following:

(1) Oxidation (2) Photoresist application (3) Lithography (4) Etching (5) Resist removal (6) Layer deposition (7) Ion implantation (8) Chemical mechanical polishing (9) Metal Wiring (10) Testing

The majority of the value, time, and process is attributed to this phase, which at its completion results in items having their essential character as RF FEM integrated circuits. Upon completion of the front-end manufacturing process, the wafers are sent to China for the back-end manufacturing process.

During the back-end process, the wafers, each containing numerous finished RF FEM integrated circuits, are diced, assembled, and packaged. The back-end processing that takes place within China consists of the following:

(1) Thinning wafers (2) Sawing wafers (3) Attaching die to carrier (4) Wire bonding (5) Package Molding (6) Package Singulation

These steps do not alter the inherent properties, character, or use of the individual RF FEM integrated circuits. Rather, the packaging functions as the mechanical carrier of an RF FEM integrated circuit die, protecting it from environmental effects and permitting connection to a printed circuit board.

Upon completion of the back-end manufacturing process, the finished/packaged RF FEM integrated circuit is shipped back to the United States for testing and finishing, which consists of baking moisture out of the RF FEM integrated circuits, placing them on tape and in reels then packing them for shipment to customers.

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). Based upon the facts presented, it is the opinion of this office that the front-end processing that takes place in the United States is both meaningful and complex, resulting in the creation of wafers which incorporate numerous finished RF FEM integrated circuit die. All non-originating materials, used in the manufacture of the wafers containing the RF FEM integrated circuit die, are substantially transformed as a result of the front-end processing that takes place within the United States. The character of the finished/packaged RF FEM integrated circuit module is imparted by the IC chips/die which would be considered the dominant component. The RF FEM integrated circuit die does not undergo a substantial transformation as a result of the back-end processing that takes place in China. The RF FEM integrated circuit die retain their identity and predetermined end use which was established as a result of the front-end processing. Therefore, since a substantial transformation does not occur as a result of the back-end processing that takes place within China, the country of origin of the finished RF FEM integrated circuit module will be the United States; therefore, trade remedies under Section 301 will not apply. ?

It should be noted that when the country of origin is the United States, products would not be required to have any country of origin marking pursuant to 19 U.S.C. 1304 when imported into the United States.

Whether an article may be marked with the phrase ?Made in the USA? or similar words denoting United States origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S.

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 Steven Pollichino at [email protected].


Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division