COUNTRY OF ORIGIN MARKING OF IMPORTED PRINTED CIRCUIT BOARDS

N129138 November 18, 2010 MAR-2 OT:RR:NC:N1:109 CATEGORY: MARKING Mr. M. Jason Cunningham Attorney Sonnenberg & Anderson 300 South Wacker Drive, 18th Floor Chicago, IL 60606 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED PRINTED CIRCUIT BOARDS Dear Mr. Cunningham: This is in response to your letter dated October 22, 2010, which you filed on behalf of your client, ReMapp International Corporation. In your letter, you requested a ruling on the country of origin marking requirements for printed circuit boards that your client intends to import into the United States. You also raised the question as to whether the importer, ReMapp International Corporation, would be considered the ultimate purchaser of the imported printed circuit boards. It is explained in your letter that ReMapp International Corporation will import printed circuit boards that are made in China and shipped to the United States via Hong Kong. The printed circuit boards themselves will not be marked, but will be shipped into the United States in bulk and the outer containers that ReMapp International Corporation will receive will be clearly marked with their Chinese origin. Your letter states that ReMapp International Corporation will import two types of printed circuit boards (PCBs). They are an LED power driver control board and an LED board. At the time of importation the boards are non-functional. In their condition as imported each board lacks the components that would enable them to function as intended. The intended function of the LED power driver control board after completing the post-importation assembly in the United States is to create an LED engine, which provides the controlled drive current to the LED board in the range of 150-170mA and a standby current of 5uA to allow the controlled light output of 47 lumens for a minimum of 8 hours. In other words, the post-importation function is to control current, but more specifically to control illumination. The basic function of the LED board after processing in the United States is to emit light precisely in accordance with specified lumens, colors, and other specified characteristics from a single 1.5v power source. After importation into the United States, the following assembly processes will be performed by ReMapp International Corporation to the LED power driver control board and the LED board printed circuit boards: Unpacking, separating, and inspecting the imported parts. (Each LED power driver control board is shipped with the boards still nested within panels, a configuration used for auto placing components in a robotic insertion placement machine.) The panels are prepared and set-up to apply the solder paste through a metal stencil. An LED driver is placed, but not yet soldered, onto the LED power driver control circuit. Each LED driver placement is inspected for precise alignment to the specification for reflow soldering. The LED power driver control circuit board with properly aligned and placed LED driver is placed in a wave solder machine which has been programmed to reflow the solder without disturbing the other solder joints Cooling of the boards Inspection of the boards Testing of the final soldered board. (Assuming success reflow soldering and testing, this part of the process results in an “LED engine” capable of controlling the current to the LED board.) Physical connection of the “LED engine” to the LED board. Electrical connection of the “LED engine” to the LED board. Packing of the completed miniature high-brightness illuminator for shipment to customers. The “LED engine” is crucial to the final product, without it the miniature high-brightness illuminator would not be capable of emitting light, because, for example, it contains the programming and circuitry that allows the LED to be powered from a 1.5 volt source, such as a single AA battery. Otherwise, the LED would require a minimum of 3 volts to generate light. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the United States must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the United States who will receive the article in the form in which it was imported. 19 CFR134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed, and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See 19 CFR 134.35. In this case, ReMapp International Corporation is the ultimate purchaser because it subjects the imported printed circuit boards to a process in the United States that substantially transforms them into an article having a different use and character than that of the imported article, specifically a miniature high-brightness illuminator. Pursuant to 19 CFR 134.35 (a), the imported article itself would be exempt from marking upon importation into the United States. An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs is satisfied that the article will remain in its container until it reaches the ultimate purchaser and if the ultimate purchaser can tell the country of origin of the printed circuit boards by viewing the container in which they are packaged, the individual printed circuit boards would be excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d). Accordingly, marking the container in which the printed circuit boards are imported and sold to the ultimate purchaser is an acceptable country of origin marking for the imported printed circuit boards, provided the port director is satisfied that the articles will remain in the marked container until it reaches the ultimate purchaser. As such, only the outermost container in which the printed circuit boards are imported must be marked to indicate China as the country of origin. Therefore, marking the outer containers “Made in China” is an acceptable country of origin marking. Within your submission you also asked for confirmation that the imported printed circuit boards need not be accompanied by a certification statement as described in CFR 134.26. CFR 134.26 pertains to “Imported articles repacked or manipulated” and requires that the importer provide a statement that if the imported articles are intended to be repacked by the importer he shall not obscure or conceal the country of origin marking appearing on the article or if the article is intended to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or transferee, in writing, at the time of sale or transfer, that any repacking of the article must conform to these requirements. Since it is not ReMapp International Corporation’s intention to repack, manipulate, sell, or transfer the printed circuit boards, but rather to substantially transform them into miniature high-brightness illuminators in the United States, the certificate required by CFR 134.26 need not accompany the importation of the printed circuit boards. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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, contact National Import Specialist Linda M. Hackett at (646) 733-3015. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division