OT:RR:NC:N2:209
Lisa Murrin
Expeditors Tradewin LLC
795 Jubilee Drive
Peabody, MA 01960
RE: The country of origin of transceiver modules
Dear Ms. Murrin:
In your letter dated August 20, 2025, you requested a country of origin ruling, on behalf of your client
Accelink Technologies, for Octal Small Form Factor Pluggable transceiver modules.
The item concerned is referred to as the 800G OSFP (Octal Small Form Factor Pluggable) DR8 transceiver
module. This transceiver module will be mounted to each end of a length of fiber optic cable. The subject
merchandise is a hot-pluggable module that plugs into network devices, such as switches in data centers. It is
used to convert an electrical signal into an optical signal, and conversely an optical signal back into an
electrical signal. These transceivers are designed for use in 800 Gigabit Ethernet links on up to 500m of
single mode fiber. They are used for networking in the data communications sector to receive, convert, and
transmit different signals.
The main components of the OSFP transceiver are the Printed Circuit Board Assembly (PCBA) which is
manufactured in the United States using Surface Mount Technology (SMT), the Optical Subassembly (OSA)
which is manufactured in China, and the transceiver housing. Final assembly, firmware loading, and final
testing occur in the United States
OSA (China-origin)
The OSA includes both a TOSA (transmit optical subassembly) and a ROSA (receive optical subassembly).
The TOSA and ROSA are referred to as “Tx” and “Rx.”
The Tx (transmitter) part of the OSA is responsible for converting the electrical signals into optical signals
and transmitting these signals over the optical fiber strand in the FA (fiber array) connected to it. One laser
diode unit generates and focuses a light beam into a SiPho (Silicon Photonic) integrated circuit. The photonic
integrated circuit splits the light signal into four light beams and takes electrical signals from the main PCBA
to modulate the four collected light beams. Then, four lights are launched into the optical fibers of the FA via
the isolator focus optics. The light beams then travel to the receptacle connector and out of the optical
transceiver. The Tx part of the OSA is manufactured in China and attached to the U.S.-origin PCBA in
China.
The Rx (receiver) part of the OSA is responsible for receiving the optical signals transmitted from the Tx part
of the transceiver and converting them back to electrical signals so that the communication equipment can
understand them. The Rx part of the OSA consists of an Rx block, four photodiodes, two single-layer
capacitors, and a transimpedance amplifier. The Rx part of the OSA receives four light beams from optical
fibers and sends them to four photodiodes. It is the photodiodes that convert the light signals into electrical
signals which are then amplified by the transimpedance amplifier on the PCBA. The Rx part of OSA is
manufactured in China and attached to the U.S.-origin PCBA in China.
Main Board PCBA (U.S.-origin)
The Main Board PCBA contains the digital signal processor (DSP) chip of U.S.-origin. This part is the
highest value part on the BOM and a critical component of the PCBA. The Main Board PCBA is the
foundation of the transceiver and imparts its essence. Without the Main Board PCBA, the Tx part of the OSA
cannot generate optical signals and the Rx part of the OSA cannot convert optical signals into electrical
signals.
The DSP provides for signal amplification, detection, regeneration, and reconditioning. The DSP works with
the OSA and provides electrical driving signals for the OSA (both the Tx and Rx). The 4 DSP signals the
laser diode of the Tx side of the OSA to emit optical signals into the fiber array and out of the transceivers.
The DSP also processes optical signals from the fiber array into the transceiver on the Rx side of the OSA.
The signal is not readable by the OSA until it is formatted by the DSP chips. On the receiving side, when the
optical transceiver receives a signal from the OSA and converts the optical signal to electrical signal, the
electrical signal is not readable by the optical transceiver until it undergoes further processing from the DSP.
The Main Board PCBA also contains an erasable programmable read-only memory chip (“EPROM”) that
will be programmed in the U.S. to provide the required instructions to perform the transceiver function. The
EPROM information is saved in the flash memory of the MCU IC (Accelink PCBA Part Number 20719401
on the BOM). In addition to the DSP chip and the EPROM, the PCBA consists of approximately 560
electrical components from various countries of origin. More than three-fourths of the total components of
the transceiver are on the Main Board PCBA.
Manufacturing of the Main Board PCBA in United States:
Production in the U.S. includes the creation of the PCBA via surface mount technology (“SMT”). The PCBA
consists of numerous components/elements from various countries of origin. The SMT process is a
multistage process requiring different types of specialized machines. It takes 10.2 minutes to assembly the
PCBA in a fully automated process using specialized equipment. The SMT process for the PCBA is as
follows:
1. The printed circuit board will undergo solder paste printing.
2. The board will undergo an initial solder paste inspection (“SPI”).
3. The board’s solder side will be surface-mounted by means of a pick-and-place machine that
populates the solder side of the board with its dedicated PCBA components.
4. The solder side will undergo solder reflow to permanently adhere the components to the board.
5. The PCBA will undergo automated optical inspection (“AOI”).
6. The PCBA will undergo an automated 3D x-ray inspection.
7. The PCBA will undergo another round of the SMT subprocess, repeating all previous steps.
8. The PCBA will then undergo conformal coating in order to protect the PCBA and its components
from moisture, dust, or other forms of damage. The coating is then dried and baked.
9. The PCBA will undergo a manual visual inspection via microscope.
Once the PCBA is assembled, it is sent to China where the OSA is attached
Manufacturing Steps in China:
1. Receive PCBA from the U.S.
2. Attach the SiP, laser, and substrate onto PCBA
3. Perform wire bonding
4. Attach the isolator to the PCBA with epoxy curing
5. Attach and align Lens 1 to the PCBA, with epoxy curing
6. Attach and align Lens 2 to the PCBA with and epoxy curing
7. Attach and align the Tx Fiber Array with epoxy curing
8. Rx FA alignment and attach, and epoxy curing
9. Attach a cover to protect the OSA on PCBA
10.Test and inspect the OSA-on-PCBA
The OSA-on-PCBA is then returned to the United States where it is assembled into the finished transceiver.
Final Assembly in United States:
Once the OSA-on-PCBA arrives back in the United States, thermal grease is added to the light source in
order to ensure heat dissipation and a component for heat release is attached to the light source. Next, an
OSA cover is attached to the OSA via a UV curing and baking process. Next, the fiber router is attached,
which routes fibers between the Tx part of the OSA subassembly, the Rx part of OSA subassembly, and the
fiber connectors. Lastly, thermal pads are attached to allow the entire optical transceiver to dissipate heat.
Once the above manufacturing in the U.S. is completed, the mechanical housing is attached to the parts, the
software is loaded, and the transceiver undergoes electrical and optical performance tuning, testing, and
quality assurance.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every
article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly,
indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to
indicate to the ultimate purchaser in the United States, the English name of the country of origin of the
article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to
know by an inspection of the marking on the imported goods the country of which the goods is the product.
The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by
knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should
influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the
country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP
Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, or
growth of any article of foreign origin entering the United States. Further work or material added to an article
in another country must effect a substantial transformation in order to render such other country the “country
of origin” within the meaning of the marking laws and regulations.
A substantial transformation occurs when, as a result of manufacturing process, a new and different article
emerges, having a distinct name, character or use, which is different from that originally possessed by the
article or material before being subjected to the manufacturing process. See United States v.
Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).
Based upon the facts presented, it is the opinion of this office that the manufacturing processes that take place
within the United States to create the main PCBA is both substantial and complex. The character of this
product is imparted by the main PCBA which would be considered the dominant component of this
assembly. The assembly/manufacturing process that takes place in China does not change the end use of the
main PCBA. The PCBA does not undergo a substantial transformation as a result of the Chinese processing.
Therefore, since a substantial transformation does not occur as a result of the Chinese processing, the country
of origin for marking purposes would be the United States upon importation into the United States.
If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking
requirements of 19 U.S.C. 1304. Whether an article may be marked with the phrase, Made in the USA or
similar words denoting U.S. 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,
(for)
Denise Faingar
Acting Director
National Commodity Specialist Division