The country of origin of insulated bus bars

N306305 October 16, 2019 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin Rebecca Guo Rogers Corporation 6645 Huntshire Drive Elkridge, MD 21075 RE: The country of origin of insulated bus bars Dear Ms. Guo: In your letter dated September 18, 2019, you requested a country of origin ruling. The merchandise under consideration is described as insulated bus bars. The bus bars are electrical conductor assemblies comprised of a base metal conductor wrapped in insulating material and fitted with connection points. The purpose of the bus bar is to act as a distribution point or junction within an electrical power system. You state that the manufacturing of the bus bar begins in China where a base metal conductor of Chinese origin is punched, deburred, bent to shape, and tin-plated according to the specifications of the user. The conductors are then shipped to Hungary for further processing that includes the addition of the insulating film, lamination, electrical testing, cutting and mounting heat shrink tubing, inserting bushings, and final testing and packaging. You state that the components used in this process are sourced from various countries throughout the European Union. 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. 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). With regard to the origin of the subject insulated bus bars, it is the opinion of this office that the Chinese origin conductor imparts the essential character to the finished units. We find that the addition of the insulation and other constituent components in Hungary does not substantially transform the conductor into a new and different article of commerce with a name, character, and use distinct from the individual components. Based upon the facts presented, it is the opinion of this office that the origin of the subject insulated bus bars is 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 Luke LePage at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division