OT:RR:NC:N1:164
Matthew Lapin
Wiley Rein LLP
2050 M St., NW
Washington, DC 20036
RE: The country of origin of a desktop waterjet cutting machine
Dear Mr. Lapin:
In your letter dated May 27, 2025, you requested a country of origin ruling on a desktop waterjet cutting
machine on behalf of your client, Wazer, Inc. Technical information was submitted with your request.
The item under consideration is described as a desktop waterjet cutting machine that cuts a variety of
materials into precise, user-determined shapes using a high-pressure stream of water and abrasive materials.
The stream is delivered through a nozzle as directed by onboard software processing by a printed circuit
board assembly (PCBA) based on schematic information uploaded by a user.
As you described, the waterjet cutting machine comprises two interconnected subassemblies: the waterjet
cutter main unit and the waterjet cutter pump box. These two subassemblies contain several key
subcomponents and incorporate firmware and web access management (WAM) software. The primary
controller PCBA handles all processing for the machine, which includes translating a user’s schematic files
and incorporating the input from dozens of sensors to precisely control the machine’s actions. The user
interface (UI) controller assembly includes a PCBA, a display, and buttons which transmit input signals from
the user to the primary controller PCBA during setup, operation, and maintenance. In addition, the
high-pressure pump pressurizes the waterjet cutting spray that forces it through the nozzle assembly. The
drivetrain comprises the components that power the pump as directed by the primary controller PCBA.
The nozzle assembly includes a jeweled orifice that the pressurized water is forced through for conversion
into a high velocity stream, a chamber that draws in abrasive material and mixes it with the water stream, and
a carbide mixing tube that focuses and ejects the formed slurry onto the workpiece for cutting. The gantry
moves the nozzle assembly in various directions as desired using stepper motors, gears, and belts. The
abrasive hopper assembly stores dry abrasive and includes a valve to start and stop the flow of abrasive into
the nozzle assembly. Additionally, there is a tank assembly that serves as the repository for liquid and used
abrasive material during cutting. This assembly includes sensors, low pressure pumps and a valve that moves
the used material out of the machine for drainage.
In your letter, you state that both the primary controller PCBA and the UI controller PCBA are loaded with
unique firmware that controls their functions. Finally, there is also proprietary WAM software that allows
users to manipulate and convert information from other design programs for use with the waterjet cutting
machine. In subsequent correspondence, you confirmed that the waterjet cutting machine is completely
incapable of cutting as a hand-held tool or with any sort of hand-held attachment. You also assert that the
waterjet cutting machine is a computer numerical control (CNC) machine and dependent on the firmware,
software, and PCBAs for operation.
Based on the submitted information, the waterjet machine is manufactured in China using predominantly
Chinese-origin components and PCBAs from Vietnam or Malaysia. In Vietnam or Malaysia, the primary and
UI controller PCBAs are manufactured in an eight-step process including printed circuit board (PCB)
manufacturing and testing, solder paste, PCBA assembly, PCBA programming (including
firmware/software), and PCBA testing. You stated that the PCBA assembly processes in Vietnam or
Malaysia are predominantly automated.
Production begins in China with the assembly of the gantry and frame components. Of note, the UI controller
PCBA from Vietnam or Malaysia is installed into the frame component. The gantry is then inserted into the
frame and bolted together. Next, the tank components are assembled and inserted into the gantry and frame
assembly, bolted, and sealed with caulk. Following that, the primary controller PCBA from Vietnam or
Malaysia is inserted into the previously constructed assembly, bolted, and wired to other components. Then,
the abrasive hopper is assembled, slid into the larger assembly, and wired to the abrasive pinch valve and
vibration motors. At that point, the cutting head components (nozzle assembly) are assembled and bolted into
place on the gantry. After that, the high pressure pump, pressure gauge, pressure relief device, and clutch are
assembled with the remainder of the pump box components.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters ruling
letter 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 this case, although the PCBAs from Vietnam or Malaysia are critical components which the rest of the
waterjet cutting machine relies on for operation, the totality of the Chinese components and manufacturing
input in China results in a substantial transformation of the PCBAs from Vietnam or Malaysia. In your letter,
you confirmed that all of the essential physical and mechanical components of the machines are
manufactured in China, including, but not limited to the frame, gantry, nozzle assembly, pump, drivetrain,
abrasive hopper, and tank. This is in sharp contrast to Vietnam or Malaysia where only the PCBAs are
manufactured. Based on the information provided, the component costs of the Chinese components
significantly surpass the costs of the PCBAs from Vietnam or Malaysia.
Additionally, you state that excluding downtime and non-assembly tasks, the total assembly time for each
machine in China spans several hours. When seven technicians work simultaneously, the consolidated
assembly time averages much less than that but remains profoundly greater than the PCBA manufacturing
process in Vietnam or Malaysia which you describe as largely automated.
Finally, from a functional standpoint, although the PCBAs are necessary for the waterjet cutting machine to
operate, as exported from Vietnam or Malaysia, they are only components of the completed machine and are
totally incapable of waterjet cutting of material on their own. However, when the PCBAs are assembled with
the comparatively large quantity of Chinese-components in China, the PCBAs are transformed into a product
with a new name, character, and use, i.e., a desktop waterjet cutting machine. Accordingly, since the PCBAs
from Vietnam or Malaysia are substantially transformed in China, the country of origin of the desktop
waterjet cutting machine is China.
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
(C.F.R.), 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 C.F.R. 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 Paul Taylor at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division