OT:RR:NC:N2:212
Lynlee Brown
Ernst & Young LLP
4365 Executive Drive, Suite 1600
San Diego, CA 92122
RE: The country of origin of disposable electronic cigarettes
Dear Ms. Brown:
In your letter dated July 10, 2025, you requested a country of origin ruling on behalf of your client, Power
Source Inc.
There are five versions of disposable electronic cigarettes at issue with this request that are identified by
model numbers DS52, DS56, DS57, DS65, and DS68. You state that the five models are virtually identical in
form and function with only minor differences in size and shape. The subject devices are comprised of a
heating module within a sealed housing, which also contains the lithium battery and the location for the
storage of the substance. At one end of the device is a mouthpiece designed to allow the user to inhale the
vaporized substance. We note that the device is not entered with any liquid substance for vaporization as this
will be added after importation.
In your request, you propose two manufacturing scenarios that cover all five models of electronic cigarettes.
In both cases, the manufacturing process begins in Indonesia. In Indonesia, the heating module, which is
comprised of a heater base, ceramic matrix, and fabric strip, is created by wrapping the ceramic matrix with
the fabric strip and then placing this subassembly onto the heater base. We note that this process creates the
complete heat module that is used to atomize the desired e-liquid.
Further, in Indonesia the control module is created. This module consists of the control printed circuit board
assembly (PCBA), airflow controller, and USB interface. These components are soldered together and
prepared for installation into the remainder of the device. This module contains the electrical control
elements for the finished device.
In scenario 1, the remainder of the steps are completed in Indonesia. In scenario 2, the heating and control
modules are sent to China for the rest of the process. The heating and control modules are connected through
a specialized bracket. The lithium battery is then soldered to the USB within the control module before all
parts are enclosed within the housing. The finished device is then tested for function and packaged for
shipment to the United States.
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).
Regarding the origin of the electronic cigarettes, it is the opinion of this office that the heating and control
modules impart the character as they are the essential electrical components of the devices. Further, any
assembly process performed in China in scenario 2 does not substantially transform the components into new
and different articles of commerce. As such, for both scenario 1 and scenario 2, the country of origin of the
disposable electronic cigarettes, model numbers DS52, DS56, DS57, DS65, and DS68 will be Indonesia.
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,
(for)
James Forkan
Acting Director
National Commodity Specialist Division