OT:RR:NC:N2:209

Meghann Supino
Ice Miller, LLP
1 American Square
Indianapolis, IN 46282

RE: The country of origin of solar panels

Dear Ms. Supino:

In your letter dated October 27, 2025, you requested a classification and country of origin determination on behalf of your client, Precision Enterprise Ltd.

The items concerned are two models of solar panels, composed of monocrystalline silicon photovoltaic cells and various other components. The individual identifiers for the solar panels are:

180W Rigid Solar Panel Model No.: FSFP18WM-BL, Lippert no.: 2022001299. 370W Rigid Solar Panel Model No.: FSFP37WM2-BL, Lippert no.: 2022001310.

The solar panels are fitted with a junction box, cables and MC4 connectors. In use, the panels would be connected to a solar charging controller, a battery and an inverter, forming a complete solar power system. This ruling only pertains to the solar panel without the additional power managing components.

The applicable subheading for each solar panels (180W Rigid Solar Panel Model No.: FSFP18WM-BL, Lippert no.: 2022001299; and 370W Rigid Solar Panel Model No.: FSFP37WM2-BL, Lippert no.: 2022001310) will be 8541.43.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Semiconductor devices (for example, diodes, transistors, semiconductor-based transducers); photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels;…Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED): Photovoltaic cells assembled in modules or made up into panels: Crystalline silicon photovoltaic cells of a kind described in statistical note 10 to this chapter.” The general rate of duty will be Free.

Regarding the country of origin: 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).

Additionally, 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.

The manufacturing process of the solar panel is conducted in Taiwan, China and the Philippines. The manufacturing process consists of the following:

Taiwan: The monocrystalline silicon solar cells are fully manufactured with a P/N junction. The P/N junction's built-in electric field forces the free electrons to the N-type side and the holes to the P-type side, creating a voltage and, when connected to an external circuit, generating a direct current. This part of the manufacturing process includes wafer selection, texturing, diffusion, etching, film application, printing, sintering, and testing.

China: The cells are then shipped to China, where they are soldered to tempered glass, laminated with EVA film and backsheet, and tested. Those components and other components such as aluminum frames, junction boxes, and encapsulants are also sourced from China.

Philippines: Final assembly is completed in the Philippines, including framing, junction box assembly with silicon gel, wiring, testing, inspection, and packaging.

The finished modules are then shipped to the United States

Based upon the facts presented, it is the opinion of this office that the solar cells manufactured in Taiwan impart the essence to the finished solar panels. The raw silicon wafers and other materials undergo a substantial and complex manufacturing process within Taiwan. The Taiwanese manufacturing process results in a functioning solar cells (with the requisite P/N junction) which would be considered an article with a new name, character, and use. The processes performed in China and the Philippines does not substantially transform the solar cells into new and different articles of commerce. As such, the country of origin for marking and trade remedy purposes is Taiwan. 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 of Taiwan will be subject to an additional ad valorem rate of duty of 20 percent. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.02.60, in addition to subheading 8541.43.0010, HTSUS, listed above.

Effective January 23, 2018, Presidential Proclamation 9693 imposed safeguard measures on imports of crystalline silicon photovoltaic (CSPV) cells and certain products incorporating CSPV cells in the form of additional tariffs or tariff rate quotas for a period of three years. The safeguard measures were subsequently extended by Presidential Proclamation 10339, dated February 4, 2022, for an additional four years. As a result, products classified under subheading 8541.43, HTSUS, unless specifically excluded, are subject to the additional duties. See Note 18 to Chapter 99 and subheadings 9903.45.21 through 9903.45.27, HTSUS.

You have asked whether this product is subject to antidumping duties or countervailing duties (AD/CVD). When there is a question as to whether merchandise is subject to an antidumping or countervailing duty order or considered to be defined by the scope of an order, such a determination is governed by the U.S. Department of Commerce’s International Trade Administration (“Commerce”). Commerce issues scope rulings to determine whether merchandise which is in commercial production is covered by the scope of an antidumping or countervailing duty order. Commerce’s scope rulings are separate and distinct from decisions issued by CBP regarding tariff classification and country of origin for purposes such as duty assessment and marking.

To seek a scope ruling, please visit the website of Commerce’s International Trade Administration. A guide to seeking a scope ruling can be found at https://access.trade.gov/help/Scope_Ruling_Guidance_(4.1.2022).pdf. A list of current AD/CVD investigations at the United States International Trade Commission can be viewed on its website at http://www.usitc.gov. Additionally, messages sent by Commerce to CBP regarding AD/CVD cash deposits and liquidation can be searched using ACE or CBP’s search tool at https://trade.cbp.dhs.gov/ace/adcvd/adcvd-public/#.

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)
Deborah Marinucci
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division