CLA-2-90:OT:RR:NC:N1:105

Mike Mohseni
AutoMetrics Manufacturing Technologies Inc.
3600 Steeles Avenue E
Markham, Ontario L3R 9Z7
Canada

RE: The tariff classification and country of origin of an Industrial Data Acquisition Sensor Box

Dear Mr. Mohseni:

In your letter dated March 23, 2026, you requested a tariff classification and country of origin determination ruling. Descriptive literature was provided for our review.

The subject merchandise is an Industrial Data Acquisition Sensor Box designed for monitoring electrical parameters of industrial machinery. The device obtains current and voltage from connected industrial machines, processes the data, and transmits digital data via WiFi, USB, or Ethernet connection. The unit is Bluetooth enabled for wireless configuration and adjustments. The sensor is housed in a CNC-machined aluminum enclosure, which is designed for indoor use in controlled environments.

We find the Industrial Data Acquisition Sensor Box to be similar to the DAQ-800 discussed in New York Ruling N301112 (dated October 30, 2018). In the ruling it states:

Based on the information provided, the DAQ-800 performs no measurements or analyses itself, nor does it serve to control any of the plant equipment to which it is connected. Instead, the DAQ-800 receives the analog signals that the measurement equipment in the plant equipment transmits and converts it to digital data that can be displayed by the Shotscope program. In this respect, the DAQ-800 serves a function similar to that of the data recorders described in Headquarters Ruling Letter (HRL) H112722 (dated September 30, 2010). The data recorders in that ruling received electrical signals from sensors incorporated into industrial machinery and translated said signals into readable data that provided information on the operating status of the equipment. HRL H112722 found that the data recorders served as checking instruments of heading 9031, and classified them accordingly. The Industrial Data Acquisition Sensor Box is constructed with components from China, France, the U.S.A., Mexico, the United Kingdom, Canada, Taiwan, and the Philippines. The Chinese components include the printed circuit board (PCB), the ESP32 module, power supply, rocker switch, wire, USB connector, housing, bottom and top caps, and magnet. The French components include the banana jack sensor cables. The ring connector, hex nut, and tapered heat-set plastic insert are of U.S.-origin. The female quick connect is from Mexico, the USB-A adapter is from the United Kingdom, and the screws are from Taiwan and the Philippines. The complete assembly process occurs in Canada along with the creation and flashing of the firmware.

The assembly process begins with preparing the Chinese-origin enclosure, a black anodized aluminum heatsink body featuring cooling fins on all four sides. This enclosure is placed on an anti-static mat with its open cavity facing upward, its interior is inspected, and then cleaned for any debris. The four corner mounting holes for the lid screws and the input/output (I/O) panel cutout on the front face are confirmed to be clear and ready. Subsequently, the I/O panel, which serves as the front-facing aluminum plate for external connectors is fitted with its components. This includes installing a rocker power switch, a USB Type-A port, and two pairs of red and black banana jacks into their respective cutouts and holes, securing them with screws and ensuring correct orientation. The RECOM AC-DC power supply module is then mounted inside the enclosure body, adjacent to the I/O panel, with its AC input accessible and DC output terminals ready for wiring.

Following the initial component installations, the PCB sub-assembly is prepared by mounting the pre-assembled PCB, which includes an ESP32 module, onto the underside of the top lid plate using brass standoffs. This assembly is secured with screws in a cross pattern to ensure even seating. The power circuit is then wired, connecting the RED wire from the RECOM module to the rocker power switch and then to the PCB’s positive terminal, while the BLACK wire connects directly to the PCB’s negative terminal. A chassis ground wire is also connected from the RECOM module to the enclosure chassis for safety. The banana jacks are wired to the corresponding Voltage and Current terminal blocks on the PCB, and the USB cable is routed from the panel-mount port to the ESP32 module. After all wiring is completed and verified, including insulating the banana jack terminals with liquid electrical tape to prevent shorting, a final comprehensive check of all connections is performed before the lid is attached. The lid, with the PCB assembly facing downward, is carefully lowered and secured with screws from the bottom of the enclosure. Finally, the I/O panel, with all its connectors installed and wiring routed correctly, is aligned and secured to the front of the enclosure.

The printed circuit board assembly (PCBA) incorporated within the device is a custom-designed printed circuit board assembly fabricated in Canada. The board is designed around an ESP32-DEVKITC-32E microcontroller module and two ADS8864 analog-to-digital converters (ADCs). Its primary function is to receive analog electrical signals from external sensors connected to the device, condition and digitize those signals, perform onboard data preprocessing, and transmit the resulting data to an external server or computer for further analysis.

CLASSIFICATION

As suggested in your letter, which also aligns with ruling N301112, the applicable subheading for the Industrial Data Acquisition Sensor Box will be 9031.80.8085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Other instruments, appliances and machines: Other: Other.” The rate of duty will be free.

The duties cited above are current as of this ruling’s issuance. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/. ORIGIN

In regard to marking, 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).

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.

Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in sections 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile and apparel goods which are subject to the provisions of 19 CFR 102.21. See 19 CFR 102.11. Applied in sequential order, 19 CFR 102.11(a) provides that the country of origin of a good is the country in which:

(1) The good is wholly obtained or produced;

(2) The good is produced exclusively from domestic materials; or

(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

Here, the Industrial Data Acquisition Sensor Box is neither “wholly obtained or produced” nor “produced exclusively from domestic materials.” Consequently, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the Industrial Data Acquisition Sensor Box, and paragraph (a)(3) must be applied to determine the origin of the finished article. As mentioned above, the subject assembly is classified under subheading 9031.80.

The tariff shift requirement in Section 102.20 for a good classified within this subheading requires a change to subheading 9031.80 from any other subheading.

The foreign materials include the Chinese, French, U.K., Taiwanese, and Philippine-origin components. The Chinese components include the PCB, the ESP32 module, power supply, rocker switch, wire, USB connector, housing, bottom and top caps, and magnet. The French components include the banana jack sensor cables. The USB-A adapter is from the United Kingdom, and the screws are from Taiwan and the Philippines.

Based on the manufacturing operations outlined previously, the tariff shift rule noted above is met. Each of the non-originating components change to heading 9031 when assembled into the Industrial Data Acquisition Sensor Box in Canada. We therefore find the country of origin of the Industrial Data Acquisition Sensor Box to be Canada.

USMCA

The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (GN) 11 of the Harmonized Tariff Schedule of the United States (HTSUS) implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states:

For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a “good originating in the territory of a USMCA country” only if

(i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;

(ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials;

(iii) the good is a good produced entirely in the territory of one or more USMCA countries using non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)).

In your letter, you explain the final assembly of the product occurs in Canada using non-originating components from China, France, the U.K., Taiwan, and the Philippines. Since the subject Industrial Data Acquisition Sensor Box contains non-originating materials, it is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i), nor is the product produced exclusively from originating materials per GN 11(b)(ii).

Thus, we must determine whether the product qualifies under GN 11(b)(iii) and GN 11(o). The applicable tariff shift rule in GN 11(o) for products classifiable under subheading 9031.80, HTSUS, requires a change to subheading 9031.80 from any other heading.

The PCB, the ESP32 module, power supply, rocker switch, wire, USB connector, housing, bottom and top caps, magnet, banana jack sensor cables, USB-A adapter, and the screws are sent to Canada where they are combined with additional U.S., Mexican, and Canadian-origin components into a complete working unit. The various foreign-origin components each undergo the required tariff shift.

Based on the facts provided, the goods described above qualify for USMCA preferential tariff treatment, because they will meet the requirements of HTSUS General Note 11(b)(iii). The goods will therefore be entitled to a Free rate of duty under the USMCA upon compliance with all applicable laws, regulations, and agreements.

This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the classification stated above, the merchandise covered by this ruling may also need to be reported with either the Chapter 99 provision under which an additional tariff applies or one of the Chapter 99 provisions covering exceptions to such tariffs. For further information to assist with the importation process, please refer to the frequently updated Cargo Systems Messaging Service (CSMS) messages at https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and the Trade Remedies page at https://www.cbp.gov/trade/programs-administration/trade-remedies.

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 Jason Christie at [email protected].
Sincerely,

(for)
James P. Forkan
Director
National Commodity Specialist Division