The country of origin and marking of an analog electromechanical speaker.

N319241 May 27, 2021 MAR-2-85:OT:RR:NC:N2:209 CATEGORY: Marking, Country of Origin Libor Matus Senior Manager Tymphany Acoustic Technology Europe, s.r.o. Prumyslovy Park 305 Koprivnice, 74221 Czech Republic RE: The country of origin and marking of an analog electromechanical speaker. Dear Libor Matus: In your letter dated May 4, 2021, you requested a country of origin and marking ruling. The item concerned is an electromechanical speaker. It will be assembled in the Czech Republic from components sourced from various countries, including critical components that are produced in the Czech Republic using injection molding processes. This analog speaker is a cone-shaped professional-grade speaker that incorporates only passive components (i.e., it is an electromechanical device that does not process, transmit or receive data). It is produced from Czech and non-Czech components in the Czech Republic The production operations performed in the Czech Republic include: Thermal injection molding processes to manufacture critical components Subassembly operations Final assembly operations Extensive product testing Packaging The Analog Speaker consists of several key components. It is claimed that the most important component is the cone-shaped acoustic enclosure. The acoustic enclosure is custom-built for the analog speaker and is designed to eliminate unwanted noise, optimize sound directivity, and work together as a system with the other components to deliver premium-quality sound that differentiates this analog speaker from other analog speakers. Unlike active speakers, which have digital processors to correct acoustic imperfections, the analog speaker relies on the custom-designed acoustic enclosure and proprietary manufacturing processes to achieve the required level of sound quality. The manufacturing process in the Czech Republic begins with manufacturing the acoustic enclosure using injection molding processes. This process involves melting plastic pellets (thermoplastic polymers) that, once malleable enough, are injected at high pressure into a mold cavity, which fills and solidifies to produce a formed acoustic cone. The cone has custom-formed internal and external physical features that are unique to the analog speaker and impart the product with its character-defining look, feel, and sound quality. The subassembly, final assembly, and product testing operations are also performed in the Czech Republic. They collectively consist of assembling numerous components and materials during a multi-step process. The production operations performed in the Czech Republic required substantial capital investment in tooling and equipment. In addition, the operations utilize skilled operators, mechanics, and technologists that have several years of experience and a college degree. A complete manufacturing process description and explanation has been provided. 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.” 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 the Czech Republic is substantial and complex. The various components and materials are transformed within the Czech Republic into a different article with a new name, character, and use. They lose their separate identities and become an integral part of a new article as a result of the manufacturing process. Accordingly, the country of origin of the electromechanical speaker for country of origin marking purposes under 19 U.S.C. 1304 would be the Czech Republic 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 Steven Pollichino at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division