The country of origin of busbar assemblies

N317019 February 2, 2021 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin Rebecca Guo Rogers Corporation 6645 Huntshire Drive Elkridge, MD 21075 RE: The country of origin of busbar assemblies Dear Ms. Guo: In your letter dated January 19, 2021, you requested a country of origin ruling. There are three items at issue with this request, all described as busbar conductor assemblies. Item one is constructed of a specifically designed aluminum conductor, fitted with connection points and insulated with FR4 lamination. In use, the busbar is used within an electrical power distribution cabinet at charging stations for electric cars. Item two is constructed of a copper conductor element shaped to the size and dimension specifications of the end user and terminated at each end with a connection screw. In use, the busbar is placed within a power distribution cabinet in order to conduct electricity up to 400v. Item three consists of a copper plate conductor with incorporated connection points and wrapped in FR4 insulation. You state the product is specially designed to conduct up to 2.3 KVAC within a power distribution cabinet within a locomotive. You state, for item one, that the manufacturing process begins with the importation of aluminum sheets of Japanese origin into Malaysia. In Malaysia, the sheets are cut to size and punched to the desired form of the end user. The punched sheets are then tested and sent to China for further processing. In China, the sheets are deburred and bushings and nuts attached before it is laminated with FR4 and electrically tested. The manufacturing process for item two begins with the importation of Italian copper sheets into Malaysia. In Malaysia, the sheets are cut to size and punched to the desired form of the end user. The copper conductor is then sent to China where it is deburred, nickel-plated, and powder coated with epoxy before the connection screws are inserted into the ends. The finished bars are then tested for function and readied for exportation. For item three, copper sheets of Italian origin are sent to Malaysia where they are cut to size and punched to the desired form of the end user. The copper conductor is then sent to China where it is deburred and tin-plated prior to being laminated with FR4 insulation. Finally, bushings are added at the connection points and the finished item is tested for function and readied for exportation. 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). Regarding the origin of the three subject busbar assemblies, it is the opinion of this office that the metal sheets, which are the conducting medium, impart the essential functional component of the finished goods. The processing in Malaysia and China does not substantially transform the conductor into a new and different article of commerce with a name, character and use distinct from the exported item. Based upon the facts presented, the origin of the busbar assembly described as item one is Japan. The origin for the busbar assemblies described as item two and three is Italy. 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