The country of origin and marking of optical cable assemblies

N302793 March 8, 2019 MAR-2 OT:RR:NC:N2:209 CATEGORY: Marking, Country of origin Paula Connelly Law Offices of Paula M. Connelly 100 Trade Center Suite 660 Woburn, MA 01801 RE: The country of origin and marking of optical cable assemblies Dear Ms. Connelly: This is in response to your letter dated November 1, 2018, requesting a country of origin and marking ruling on behalf of your client, Senko Advanced Components, Inc. This request concerns the country of origin of three fiber optic cable assemblies to be imported from China (part #’s ENC-0817-726, ENC-0818-007 and ENC-1117-1152). Each of the cable assemblies consist of optical fibers of U.S. origin and various components (i.e. ferrules, guide tubes, dust caps, housings, springs, etc.) from China. Within China the U.S. origin optical fibers undergo an assembly process where the other components are added to the optical fiber(s) to create an optical fiber cable assembly. 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. The “country of origin” is defined in 19 CFR 134.1(b) 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 this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.” For tariff purposes, the courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). Based upon the facts presented and the pertinent authorities, it is the opinion of this office that the U.S. origin optical fiber, which is shipped to China for processing into the finished optical fiber cable assemblies (adding guide tubes, tubes, dust caps, springs, ferrules, etc.), does not result in a substantial transformation in China. The assembly process does not result in a new and different article of commerce with a name, character, and use distinct from the article exported. Therefore, the optical fiber cable assemblies (ENC-0817-726, ENC-0818-007, and ENC-1117-1152) are considered a product of the U.S. for marking purposes at time of importation into the United States. Accordingly, the fiber optic cable assemblies will not be required to have any country of origin marking pursuant to 19 U.S.C. 1304 when imported into the U.S. Whether an article may be marked with the phrase “Made in the U.S.A.” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S. 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 Steven Pollichino at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division