The country of origin of a universal remote control

N332276 May 8, 2023 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Origin Ka Hei Li Koda Electronics (HK) Co., Ltd 2/F, Mandarin Commercial House, 38 Morrison Hill Road, Wan ChaiHong Kong RE: The country of origin of a universal remote control Dear Mr. Li: In your letter dated April 17, 2023, you requested a country of origin ruling. The merchandise under consideration is described as a universal remote control. The subject remotes are handheld devices that function using infrared (IR) technology to control a variety of electronic devices including televisions, DVD players, audio units, and other media units. The remotes are meant to replace existing remote controls and consolidate functionality across platforms. In your request, you state that the manufacturing process takes place exclusively in Vietnam. This process begins with the creation of the main Printed Circuit Board Assembly (PCBA) by adding a variety of electrical components, including capacitors, resistors, LED, and a programmed control Integrated Circuit (IC) to a printed circuit board through Surface Mount Technology (SMT). These components are all Chinese origin. Next, a Chinese origin IR bulb is combined with a metal dome and spring, also originating from China. These parts are then combined with the keypad, front and rear panels, and battery cover, from both China and Vietnam, to create the finished remote control. 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). Regarding the origin of the subject remote control, it is the opinion of this office that the manufacturing operations performed in Vietnam, particularly including the SMT process utilized to create the PCBA, are significantly complex. All foreign articles are substantially transformed into new and different articles of commerce with a name, character and use distinct of that of the individual components. Based upon the facts presented, the origin of the universal remote control will be Vietnam.   This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Luke LePage at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division