OT:RR:NC:N2:209
Maher Shomali
Thomsen and Burke LLP
2 Hamill Rd, Suite 415
Baltimore, MD 21210
RE: The country of origin of an IP desk telephone
Dear Mr. Shomali:
In your letter dated January 9, 2026, you requested a country of origin ruling on behalf of our client, VTech
Telecommunications Ltd.
The concerned item is referred to as the “Snom D815W Desk Phone”. This device is an IP desk phone
designed for office environments. It features a 5-inch color IPS display, integrated dual-band Wi-Fi, and two
USB 2.0 ports. It supports up to 12 SIP accounts, offers HD audio quality, and includes 10 programmable
SmartLabel keys.
The Snom D815W Desk Phone is manufactured in both Germany and China under a two-step manufacturing
process.
First, each of the printed circuit board assemblies (PCBAs) used in the “Snom D815W Desk Phone” are
manufactured in Germany. The manufacturing process used is referred to as surface mount technology
(“SMT”). This process is used to load a raw circuit board with various components, such as transistors,
resistors, diodes, capacitors, integrated circuits and other electrical components necessary for the finished
product to function. During the SMT process, the PCBAs, which are specially designed for the “Snom
D815W Desk Phones”, are assembled by automated component insertion machines, processed through an
automated wave solder machine, and electrically tested. The components are primarily of Chinese and
Taiwanese origin.
The manufacture of the PCBAs (SMT) that takes place in Germany includes the following:
Main PCBA: The Main PCBA includes all the major components of the desk phone, as well as the
interface/connectors to the phone accessories. The main components mounted onto the Main PCBA
include the CPU, memory chips, PoE controller, Ethernet switch, Wi-Fi transceiver, power
management components and connectors.
Key PCBA: The Key PCBA includes the numeric and keyboard features. The main components
mounted onto the Key PCBA include the keypads and LEDs.
LCD PCBA: The LCD PCBA includes the interface to the color LCD, backlight controls and
programmable feature key indication. The main components mounted onto the LCD PCBA include the
LCDs, backlight control and programmable key LEDs.
Hook PCBA: The Hook PCBA includes the hall-effect switch for cradle detection. The hall-effect
switch IC is the main component mounted onto the Hook PCBA.
Once the PCBA manufacturing is completed, the firmware for the “Snom D815W Desk Phones”, which is
written and complied in Germany, is programmed and loaded onto the PCBAs during the testing process
before being shipped to China for final assembly.
Within China the final assembly, testing and packing takes place. During the final assembly process, the
PCBAs are assembled into the telephone housing. The rubber keypad and LCD are added. The transducers
(speakers and microphones) are then connected to the main PCBA, and the antennas are soldered from the
Main PCBA to the LCD PCBA. Final RF and functional tests are performed before the “Snom D815W Desk
Phones” are reset to factory default settings and packaged for shipment to distributors and/or consumers.
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 character of the finished telephone is
imparted by the PCBAs, which would be considered the dominant components. The manufacturing process
that takes place within Germany to create the PCBAs, results in a substantial transformation of all of the
separate components/electrical elements used in that process. The function and predetermined end use of the
PCBAs is established by the manufacturing steps undertaken in Germany. The assembly process that takes
place in China does not result in a substantial transformation of the PCBAs, they retain their function and
predetermined end use. Therefore, since a substantial transformation does not occur as a result of the Chinese
processing, the country of origin of the finished “Snom D815W Desk Phone” will be Germany for marking
purposes upon importation into the United States.
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
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division