The country of origin of a lens assembly.

N313935 August 27, 2020 CLA-2-90:OT:RR:NC:N2:212 CATEGORY: Country of Origin Lauren Schuler KPMG LLP 150 West Jefferson Detroit, MI 48226 RE: The country of origin of a lens assembly. Dear Ms. Schuler: In your letter dated August 13, 2020, you requested a country of origin ruling on behalf of your client, Magna Electronics Technology, Inc. The merchandise under consideration, identified by part number 9043954AA, is described as a lens assembly for use within an Automotive Driver Assistance Camera System. The subject assembly consists of an optical lens, filter, retainer, spacers, and a holder. We note that there are no electronics incorporated at the time of importation. After importation, the lens will be incorporated within the vehicle camera assembly and placed on either the rear, front, or side of a vehicle in order to allow the driver to view the surrounding areas to aid in safe operation. In your request, you state that the manufacturing process begins with the importation of glass rods into Vietnam from China. In Vietnam, the glass rods are cut down into lens blanks that are then ground and polished into finished lenses. This process imparts the items with the desired optical properties. The lenses are then centered and a further optical coating is applied. The retainer and spacer are then adhered to the lens before the item is tested and inspected for form and function. The “country of origin” is defined in 19 CFR 134.1(b), in pertinent part, 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.” 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). Further, in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade (“CIT”) interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer, the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight, and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted, “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an example, National Hand Tool Corp. v. United States, 16 C.I.T. 308, 310, aff’d 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article. Regarding the origin of the subject assemblies, it is our opinion that the glass tubes manufactured in China are substantially transformed by the operations performed in Vietnam. Specifically, the grinding and polishing procedures that add the optical properties impart the functional capabilities to the lenses and transform the blanks into a new and different article of commerce with a name, character, and use distinct from the imported articles. Based upon the facts presented and the relevant authorities, it is our opinion that the country of origin of the lens assembly, part number 9043954AA, is Vietnam. 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