The classification and country of origin of a safety light barrier

N315013 October 28, 2020 CLA-2-85:OT:RR:NC:N2:209 CATEGORY: Classification, Country of Origin TARIFF NO.: 8541.40.8000 Deanna H. Gresens American Lamprecht 2218 Landmeier Road Elk Grove Village, IL 60007 RE: The classification and country of origin of a safety light barrier Dear Ms. Gresens: In your letter dated October 02, 2020, you requested a classification and country of origin ruling on behalf of CEDES Corporation of America. The item concerned is referred to as the GLS 126 NT slot-type light barrier. This device is a type of optically coupled sensor. GLS 126 NT sensors are used to help determine elevator cab position in an elevator hoist way/shaft. As an elevator moves up and down, hoist way vanes protrude into the forked sensing area of the GLS 126 sensor and the optical beam is interrupted. When the optical beam is interrupted a signal is sent to an elevator control. The elevator control uses these signals to determine the location and speed of the elevator which allows it to properly control the elevator’s movements such as speed, precise floor leveling, and ensuring that the elevator cab stops on the correct floor level. The GLS 126 NT only has one optically coupled isolator (IR emitter and IR receiver). There is no analysis, measurement, or corrective actions taken by the GLS 126 NT. It is a simple device with a single output based on whether its optical beam is obstructed or not. Its purpose is to provide position signals to the higher level elevator control system to monitor and control the movements of an elevator cab. The applicable subheading for the GLS 126 NT slot-type light barrier will be 8541.40.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals; parts thereof: Other: Optical coupled isolators”. The rate of duty will be free. Regarding your country of origin determination request, based on the information supplied it appears that this device is composed of a single printed circuit board assembly (PCBA) mounted within a plastic housing with attached cables. The PCBA will be manufactured within Switzerland. Various electrical elements will be mounted to a PCB using surface mount technology (SMT) to create a surface mount device (SMD) or PCBA. This PCBA is the primary component of the GLS 126 NT slot-type light barrier. It cannot be used for any other function, nor utilized in any other product. The PCBAs are shipped to China for the final assembly process. Within China an electrical cable is attached to a plastic housing. The sheet of PCBAs is cut into separate PCBAs. Each individual PCBA is then inserted/encased within a housing along with the electrical wire leads. Finally the products are tested. 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 PCBA for the GLS 126 NT slot-type light barrier is the dominant component of this device. It does not undergo a substantial transformation as a result of the processing that takes place in China. The PCBA has a predetermined end use when exported from Switzerland and it retains that identity after the processing that takes place within China. Therefore, since a substantial transformation does not occur as a result of the Chinese processing, the country of origin of the finished GLS 126 NT slot-type light barrier will be Switzerland for origin and marking purposes at time of importation into the United States. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current. 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