The country of origin of USB Cables

N307083 November 14, 2019 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin Rosa Zhou D and S Industries Corporation Suntrust Ecotown Tanza Cative Philippines RE: The country of origin of USB Cables Dear Ms. Zhou: In your letter dated October 29, 2019, you requested a ruling for country of origin. The merchandise is described as a USB charging cable. The cable is 3 feet in length and affixed at one end with a USB-C style connector and a USB-A style connector at the other. The subject cable is used to connect and charge mobile devices to a variety of host units or charging stations. You state that the cables are assembled in the Philippines using materials sourced from the Philippines and China. Bare copper wire originating from the Philippines is extruded, twisted, and braided in the Philippines. It is then sent to China to be insulated via a second extrusion process. This finished conductor is then exported to the Philippines where Chinese origin connectors are added at each end. The finished cables are then tested for function and packaged for retail sale. 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 subject USB charging cable, it is the opinion of this office that the Philippine origin extruded, twisted, and braided wire imparts the essential character of the finished good. We note that the insulation process performed in China would add certain qualities to the wire, however it does not alter the wire’s ability to perform it’s function of transmitting data and electrical signals. Further, while the Chinese origin connectors are integral to the function of the finished cable, we find that their addition to the finished product does not substantially transform the wire into a new and different article of commerce with a name, character and use distinct from the article exported. Therefore, based on the facts presented in this case, it is the opinion of this office that the country of origin of the USB charging cable is the Philippines. 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