CLA-2-85:OT:RR:NC:N2:209
Emilie Cotzakiotis
Spark Technology France - iQsim
1360 Routes des Dolines, Les Cardoulines Bat B1
Valbonne 06560
France
RE: The tariff classification and country of origin of a physical hardware server designed for centralized
SIM card management
Dear Ms. Cotzakiotis:
In your letter dated September 16, 2026, you requested a tariff classification and country of origin
determination ruling.
The merchandise under consideration is a dedicated physical hardware server designed for centralized SIM
card management, identified as the IQ-SRX-20, SimrackX, SRX640, and Simrack640. All four model
designations represent one single, identical physical product (SRX server). The model name variations exist
solely for branding, marketing, and commercial channel differentiation. There are no physical, electrical,
hardware, or mechanical differences among these four variants in their condition as imported.
The SRX server functions as a dedicated physical hardware server designed for centralized SIM card
management. The server is used in telecommunication networks to store up to 640 physical SIM cards
(organized into 20 removable SIM trays) centrally. The device allows SIM card resources to be allocated
over an IP network to distant, VSIM-enabled mobile devices on demand. The primary use is for mobile
network testing.
The manufacturing process for the SRX consists of sourcing components from Germany, France, the United
Kingdom, Taiwan and China to a facility in France. There, Surface Mount Technology (SMT) is used to
populate the printed circuit boards (PCB), creating one Mainboard printed circuit board assembly (PCBA),
five Backbone/Backplane PCBAs, and twenty Tray PCBAs (SIM holders). The completed PCBAs are placed
into a metal enclosure where they are integrated with a Raspberry Pi CM5, and plastic subassemblies inside
the enclosure. Firmware flashing, operating system installation, and system configuration, as well as
functional testing and quality control take place next. Finally, the teh SRX is packaged alongside a 60W
Mean Well power supply unit, a C13 power cable, and an ethernet cable before being exported to the United
States for retail sale.
Classification
The applicable subheading for the IQ-SRX-20, SimrackX, SRX640, and Simrack640 will be 8517.62.0090,
Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Telephone sets, including
smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the
transmission or reception of voice, images or other data, including apparatus for communication in a wired or
wireless network (such as a local or wide area network), other than transmission or reception apparatus of
heading 8443, 8525, 8527 or 8528; parts thereof: Other apparatus for transmission or reception of voice,
images or other data, including apparatus for communication in a wired or wireless network (such as a local
or wide area network): Machines for the reception, conversion and transmission or regeneration of voice,
images or other data, including switching and routing apparatus: Other.” The general 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/.
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.
Country of Origin
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).
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. Friedlaender & 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
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. Friedlaender & 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.
Based on the information provided, it is the opinion of this office that the PCBAs manufactured in France
impart the character to the finished hardware server designed for centralized SIM card management. The
assembly process also occurs in France, but does not substantially transform the hardware server into a new
and different article of commerce with a name, character, and use distinct from the individual components.
Based on the facts presented, the origin of the IQ-SRX-20, SimrackX, SRX640, and Simrack640 will be
France.
Marking
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.
Since the subject merchandise is neither “wholly obtained or produced” nor “produced exclusively from
domestic materials”, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the
hardware server, and paragraph (a)(3) must be applied to determine the origin of the finished article. As the
subject hardware server, as noted above, is classified under 8517.62, HTSUS, the applicable tariff shift
requirement in Part 102.20 states in pertinent part:
A change to any other good of subheading 8517.11 through 8517.69 from any other subheading
outside that group, except from facsimile machines, or teleprinters of subheading 8443.31 through
8443.32, and except from subheading 8443.99 or 8517.71 through 8517.79 when that change is the
result of simple assembly.
Based on the information provided, we find that all components of the subject assemblies satisfy the tariff
shift rule and that the processes performed in France extend beyond the definition of simple assembly. As
such, the country of origin for marking purposes of the IQ-SRX-20, SimrackX, SRX640, and Simrack640
will be France.
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)
James P. Forkan
Director
National Commodity Specialist Division