OT:RR:NC:N1:105
Maher Shomali
Thomsen and Burke LLP
2 Hamill Rd, 415
Baltimore, MD 21210
RE: The country of origin of a thermostat
Dear Mr. Shomali:
In your letter dated March 30, 2026, on behalf of your client, Vtech Telecommunications Ltd., you requested
a country of origin ruling on a thermostat. Descriptive literature was provided for our review.
The item under consideration is described as a smart thermostat (model SW992WZ50), which is a 24V
wireless PTAC (packaged terminal air conditioner) thermostat with an integrated occupancy sensor, designed
to deliver energy-efficient, automated climate control for hospitality, residential, or commercial
environments. The device features an industrial design with a 2.8-inch dimmable thin-film transistor (TFT)
color display, has customizable temperature thresholds and selectable 7-day or 5-2-day programmability. The
device offers heat, cool, and auto changeover modes, along with advanced occupancy detection that adjusts
setpoints during vacant periods. The device is manufactured predominantly with electronic and plastic
components. The SW992WZ50 is compatible with PTAC and packaged terminal heat pump (PTHP) systems
and supports configuration via Bluetooth through the EC Tool Pro app.
The thermostat and controller are produced with components from China and Taiwan. The Chinese
components include the solder, glue, tape, ribbon, screws, nuts, housing, wires, batteries, springs, caps, lens,
wall mount, glass mirror, LCD module, diodes, resistors, capacitors, flash, relays, thermistor, printed circuit
boards (PCBs), and other minor components. The Chinese components are combined with the
Taiwanese-origin integrated circuit driver, which makes up 10% of the overall material cost, in Germany.
The manufacturing process begins in Germany with the creation of the printed circuit board assemblies
(PCBAs). The thermostat Main PCB, touch PCB, passive infrared (PIR) PCB, and controller Main PCB are
manufactured using Chinese and Taiwanese components via surface mount technology. Upon completion,
these PCBAs are shipped to China for integration with the remaining Chinese-sourced components. This
stage also involves production of the plastic components, such as the wall plate and housing.
The assembly process in China starts with gluing the lens to the front of the housing, followed by attaching
the thermostat touch PCBA with double-sided tape. Next, the spring and antenna are soldered to the
thermostat main PCBA before it is screwed into the housing. Subsequently, the controller main PCBA has its
sensor soldered, the battery installed, and various tests performed before being secured into the housing.
Final components are then screwed into place, and the logo is laser engraved. Finally, the completed product
undergoes testing, inspection, and the application of a protective film.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g.,
Headquarters Ruling Letter (“HQ”) 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 smart thermostat, it is our view that the creation of the PCBAs in Germany
provides the essence of the finished smart thermostat and controller, including the measurement capability.
The additional assembly process performed in China is not complex and does not transform the PCBAs into a
new article with a different name, character, or use. Therefore, it is the opinion of this office that the country
of origin of the smart thermostat (model SW992WZ50) is Germany.
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