The country of origin and marking of wireless lighting control modules from China

N309154 February 14, 2020 MAR-2-85:OT:RR:NC:N2:209 CATEGORY: Marking, Country of Origin Cory Zwolinski McWane Inc. 2900 US Hwy 280 Birmingham, AL 35223 RE: The country of origin and marking of wireless lighting control modules from China Dear Mr. Zwolinski : In your letter dated January 23, 2020, you requested a country of origin and marking ruling. The items concerned are four different lighting control modules, part numbers DIM10-087-06, DIM10-087-06-A, DIM10-087-06-FW and DIM10-087-05. These wireless controllers are to be installed within LED lighting fixtures. They wirelessly receive operational signals such as on/off and dim, from a remote control type panel/device. They incorporate a surface mount RF module (SM220UF1) which provides wireless connectivity and a variety of electrical elements such as inductors, transformers, diodes, capacitors, etc., which facilitate the electrical control function (i.e. on/off and dimming functions). The production process for the four different lighting controllers is a pick and place, surface mount process. In China roughly 40 plus electrical components/elements (diodes, resistors, capacitors, inductors, ICs and the RF module (SM220UF1)) from various countries of origin are placed on a printed circuit board and soldered into place creating the four different lighting control modules. 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, it is the opinion of this office that the manufacturing process that takes place in China is substantial and complex. The roughly 40 plus electrical components/elements (diodes, resistors, capacitors, inductors, ICs and the RF module (SM220UF1)) from various countries of origin are transformed in China into a different article with a new name, character, and use. The various elements/components lose their separate identities and become an integral part of a new article as a result of the manufacturing process. Accordingly, the lighting controllers are considered a product of China for origin and marking purposes. 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