The country of origin of insulated conductors

N289205 August 30, 2017 MAR-2 OT:RR:NC: N2:109 CATEGORY: Country of Origin Mr. Brad Greathouse VP RAQA Encision, Inc. 6797 Winchester Circle Boulder, CO 80301 RE: The country of origin of insulated conductors Dear Mr. Greathouse: In your letter dated August 10, 2017, you requested a country of origin ruling on electrical cables. The merchandise is identified as disposable instrument cables referred to as “Burn Protection Cables”. These electrical cables are used in conjunction with Encision’s AEM Laparoscopic Surgical Instrument System. The AEM system consists of a monitor, electrosurgical instruments and a disposable instrument cable. The cables are used to transfer monopolar energy to the electrosurgical instrument, for performing electrosurgery. The cable carries ESU active output high-frequency current in one conductor and the AEM shield circuit for the AEM monitor in two other conductors. This cable drains shielded current away from the patient, ensuring stray energy burns are eliminated. The cables are approximately 10 feet long with a custom connector at each end. As stated in your submission, Encision is planning to source the cables from China. The manufacturer in China will source components and materials locally and perform the entire assembly process within China. The manufacturing processes performed on the subject merchandise in China includes extruding cable and preparing it for assembly (cut and strip conductors), terminate and solder connectors, assemble and over mold connectors, test cable, bulk package and ship to United States. The Chinese origin parts are assembled into a finished insulated conductor within China, as such the country of origin of the “Burn Protection Cables” at time of import into the United States is China. 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 U.S. 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 U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(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. Within the United States the cables will be inspected, re-packaged in sterile packing, sterilized by a U.S. contractor, packaged into shipping configurations, warehoused and shipped to customers. The cables are either packaged in boxes of 25 cables or packaged into kits which include the cables, sterile scissors and a sterile sheath. In this case, the processing that takes place in the United States (inspection, re-packing and sterilization) does not substantially transform the imported “Burn Protection Cables” into a product with a new name, character and use. Therefore, it is our opinion that the country of origin of the “Burn Protection Cables” after the U.S. processing still remains China. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Steven Pollichino at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division