OT:RR:NC:N2:208

Angel Huang
Roadrunner Recycling, Inc.
105 40th Street, Suite 100
Pittsburgh, PA 15201

RE: The country of origin of cameras

Dear Mr. Huang:

In your letter dated June 2, 2025, you requested a country of origin ruling and status under the United States-Korea Free Trade Agreement (UKFTA).

The merchandise under consideration is the R13-series smart-metering cameras (R13, R13L, and R13S), and the C01 smart compactor waste-metering camera. The R13 series smart waste-metering cameras are all variants of the same hardware, with slightly different plastic enclosures, optimized for different types of containers.

According to the scenario provided, for all models the main printed circuit board assembly (PCBA) is created via surface-mount technology (SMT) processing in South Korea and the flash flexible printed circuit board (FPC), and the compact camera module (CCM) are attached to the PCBA in South Korea. This main assembly consists of adding the heat stake flash FPC to the camera carrier, connecting the flash FPC to the main PCBA, assembling it to the chassis, combining and locking the CCM into the camera using CCM mount screws, and routing and connecting the flex of the CCM to the main PCBA. In addition, programing and testing are done in South Korea. As per the information provided, the main PCBA with the flash FPC and the CMM can capture and convert images when shipped to China.

In China, the chassis is attached to the front housing, the battery is connected to the main board, and the camera is tested and packaged.

You requested a determination regarding the applicability of the United States-Korea Free Trade Agreement (UKFTA). General Note 33, Harmonized Tariff Schedule of the United States (HTSUS), sets forth the criteria for determining whether a good is originating under the UKFTA. General Note 33(b), HTSUS, states, in pertinent part, as follows: For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country under the terms of this note if– (i) the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both;

(ii) the good is produced entirely in the territory of Korea or of the United States, or both, and--

(A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or

(B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and satisfies all other applicable requirements of this note and of applicable regulations; or

(iii) the good is produced entirely in the territory of Korea or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.

The subject cameras are classified in subheading 8525.89, Harmonized Tariff Schedule of the United States (HTS), which provides for other television cameras, digital cameras and video camera recorders.

We would note that because the UKFTA rules of origin have not been updated to reflect the 2022 changes to the Harmonized System, the pre-2022 tariff classifications for the goods at issue must be used in order to ascertain eligibility under the UKFTA. See HQ 237563.

The pre-2022 tariff classification for television cameras, digital cameras and video camera recorders was 8525.80, HTSUS, which provided for “Television cameras, digital cameras and video camera recorders.” The relevant UKFTA GN 33 (o)/ Chapter 85 states:

48. A change to subheadings 8525.60 through 8525.80 from any other subheading.

Based on the facts presented, the subject cameras are classified under subheading 8525.89, HTSUS, and the requisite tariff shift rule is met. As a result, the finished metering cameras are considered originating goods under the UKFTA and eligible for preferential treatment upon importation into the United States.

GN 3(c)(i) lists the programs under which special tariff treatment may be provided, including UKFTA. The goods under consideration are deemed originating under the UKFTA pursuant to GN 33 (o), HTSUS, and therefore, are eligible for special tariff treatment under GN 3(c)(i), HTSUS.

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).

Based on the information provided, it is the opinion of this office that the main PCBAs, camera module, and flash FPC all contribute to the main functionality of the finished products relative to the functioning of the product because of the role of these PCBAs with camera module and flash FBC (e.g., capturing and converting images). Additionally, the assembly process performed in China would not substantially transform the PCBA with the camera module and flash FPC of South Korean origin into a new and different article of commerce with a name, character, and use distinct from that of the exported good. Accordingly, the country of origin of the subject cameras is South Korea. 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. At this time products from all 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 the applicable subheading in 8525, HTSUS.

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 Lisa Cariello at [email protected].

Sincerely,

(for)
Steven A. Mack
Director
National Commodity Specialist Division