The country of origin of medical cable assemblies

N340107 May 23, 2024 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin Gregory Grasher Jr Stryker Corporation (Stryker Endoscopy) 5900 Optical CourtSan Jose, CA  95138 RE:  The country of origin of medical cable assemblies Dear Mr. Grasher: In your letter dated May 14, 2024, you requested a country of origin ruling. There are five models of medical cable assemblies associated with this request that are identified as follows: P34522- CABLE ASSY 1688 P39967- CABLE ASSY P41904- CABLE ASSY 1688 P47022- CABLE ASSY P22322- CABLE ASSY PRECISION The cables are identical in composition and are comprised of a length of insulated conductor with specifically designed connectors on each end. The cables are designed for use only with the Stryker 1688 AIM Endoscopic Surgery Platform and will not be used for any other purpose. The cables will transmit video and data signals from the endoscopic camera to the unit in order for the doctor to be able to view the images during surgery. In your request, you state that the manufacturing process begins in the United States where the bulk, insulated conductor cable wire is manufactured and placed on reels for export to China. In China, the raw cable is cut to the desired length and the ends are prepped for the addition of the connectors. The connectors are then wired to and assembled on both ends before a final thin coating is applied and the finished cables are tested and packaged for shipment to the US. 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 cables, it is our opinion that the U.S. originating cable conductor imparts the character of the finished cables as it is the fully functional primary component of the finished article. The addition of the connectors in China does not substantially transform the cable into a new and different article of commerce with a name, character, and use distinct from the individual components. Based upon the facts presented, it is the opinion of this office that the origin of the medical cables, identified by the below part numbers, will be the United States. P34522- CABLE ASSY 1688 P39967- CABLE ASSY P41904- CABLE ASSY 1688 P47022- CABLE ASSY P22322- CABLE ASSY PRECISION Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the USA. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. 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