The country of origin of a grounded photocell receptacle

N308563 January 16, 2020 CLA-2-885:OT:RR:NC:N2:220 CATEGORY: Origin Clifford Chi Hampton Products International Corporation 50 Icon Foothill Ranch, CA 92610 RE: The country of origin of a grounded photocell receptacle Dear Mr. Chi: In your letter dated December 20, 2019 you requested a country of origin. The merchandise under consideration is identified as the Outdoor Grounded Photocell Timer, Part Number HT2062, which is described as a plastic housing containing a printed circuit board assembly (PCBA), a mechanical timer dial, LED power indicators, and a female three-pronged grounded receptacle. On the top of the subject receptacle is a 6” power cord with a male three-pronged plug where users connect to mains power. In use, the subject outdoor receptacle opens and closes the electrical circuit via the photocell and electricity is supplied to connected devices for a period of time as determined by the timer dial. In your request, you state the PCBA will be produced in the Philippines by soldering numerous components of various origins, such as resistors, capacitors, integrated circuits, a relay, etc. to manufacture a functional PCBA. The PCBA is subsequently exported to China where it is assembled into a molded plastic housing along with mechanical dial components, the female receptacle, and the power cord. You state that the housing, the dial, the female receptacle, and the power cord are all products of Chinese origin. We would note that at the time the outdoor receptacle is imported into China for the final assembly operations, the PCBA, which is manufactured in the Philippines, contains the switching relay, the photo diode, integrated circuits and additional electronic components necessary for the switching and timing functions of the complete assembly. The assembly process in the China consists of soldering the power cord and the female receptacle to the PCBA, assembling the plastic dial to the housing, and mounting the PCBA inside the housing. Once the subject outdoor receptacle is assembled, it is tested and packaged for export. 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.” The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). Regarding the country of origin of the subject receptacle, in our view the assembly operations performed in China, which consists of soldering the wires onto the PCBA and then assembling them into a plastic housing, are neither complex nor do they substantially transform the articles being assembled. Further, it is the opinion of this office that the Philippine origin PCBA provides the essence of the receptacle because it is the article within the assembly that supplies the electricity to the output and determines dusk/dawn and timing control. Thus, based upon the facts presented and the pertinent authorities, the Outdoor Grounded Photocell Timer, Part Number HT2062 is considered a product of the Philippines for origin and marking purposes at the time of importation into the United States. 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 Karl Moosbrugger at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division