The country of origin and status under the United States-Korea Free Trade Agreement of cameras

N348165
May 12, 2025
OT:RR:NC:N2:208
CATEGORY: Origin, Trade Agreement Angel Huang Roadrunner Recycling, Inc. 105 40th Street, Suite 100 Pittsburgh, PA 15201 RE: The country of origin and status under the United States-Korea Free Trade Agreement of cameras Dear Mr. Huang: In your letter dated April 23, 2025, you requested a country of origin ruling and status under the United States-Korea Free Trade Agreement (UKFTA). The merchandise under consideration is the R13-series smart-metering cameras (R13, R13L, and R13S), and the C01 smart compactor waste-metering camera. The R13 series smart waste-metering cameras are all variants of the same hardware, with slightly different plastic enclosures, optimized for different types of containers. In your submission, you suggest that these cameras are classified in heading 8517.62.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network)…: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other.” However, the subject merchandise is more specifically provided for in subheading 8525.89, HTSUS, as a camera. Three scenarios are requested for each camera in question: the R13 series and the C01. In all scenarios, the manufacturing takes place in China and South Korea. In all cases, when the PCBA leaves South Korea, it cannot capture or convert an image. The Chinese compact camera module (CCM) and the Chinese flash flexible printed circuit board (Flash FPC) are assembled onto the main PCBA in China. Accordingly, in China, the main PCBA is completed and becomes a fully functioning PCBA that can capture and convert images

In scenario A, regarding R13-series cameras, the PCBA SMT process, programming and testing are done in South Korea, and the remaining assembling steps in China. In scenario B, also regarding the R13-series cameras, both the PCBA and flash FPC SMT process, programming and testing are done in South Korea and the remaining assembling steps in China. In scenario C, concerning the R13-series cameras, it is similar to scenario B; however, the difference is the relocation of the CCM testing in South Korea. Regarding the C01 camera, in scenario A, the PCBA SMT process, programming and testing are all done in South Korea and the remaining assembling steps in China. This scenario B for the C01 camera, the PCBA and the flash FPC SMT process, programming, and testing is done in South Korea. The remaining assembly is performed in China. C01 Scenario C is similar to scenario B, but the CCM testing in South Korea. Regarding the applicability of the UKFTA, General Note 33, Harmonized Tariff Schedule of the United States, sets forth the criteria for determining whether a good is originating under the UKFTA. General Note 33(b), HTSUS, states, in pertinent part, as follows: For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of an UKFTA country under the terms of this note if– (i) the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both; (ii) the good is produced entirely in the territory of Korea or of the United States, or both, and-- (A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or (B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and satisfies all other applicable requirements of this note and of applicable regulations; or (iii) the good is produced entirely in the territory of Korea or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above. The subject cameras are classified in subheading 8525.89, Harmonized Tariff Schedule of the United States (HTS), which provides for other television cameras, digital cameras and video camera recorders. We note that because the UKFTA rules of origin have not been updated to reflect the 2022 changes to the Harmonized System, the pre-2022 tariff classifications for the goods at issue must be used in order to ascertain eligibility under the UKFTA. See HQ 237563. The pre-2022 tariff classification for television cameras, digital cameras and video camera recorders was 8525.80, HTSUS, which provided for “Television cameras, digital cameras and video camera recorders.” The relevant UKFTA GN 33 (o)/ Chapter 85 states: 48. A change to subheadings 8525.60 through 8525.80 from any other subheading.

Based on the facts presented, the subject cameras are classified under subheading 8525.89, HTSUS, and the requisite tariff shift rule is met.? As a result, the finished metering cameras are considered originating goods under the UKFTA and eligible for preferential treatment upon importation into the United States. GN 3(c)(i) lists the programs under which special tariff treatment may be provided, including UKFTA.? The goods under consideration are deemed originating under the UKFTA pursuant to GN 33 (o), HTSUS, and therefore, are eligible for special tariff treatment under GN 3(c)(i), HTSUS. While the rules set forth above will determine the eligibility of preferential tariff treatment under the UKFTA, when determining the country of origin for purposes of applying current trade remedies under Section 301,?the substantial transformation analysis is applicable. ?See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. ?The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. ?See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). ?This determination is based on the totality of the evidence. ?See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff?d, 989 F.2d 1201 (Fed. Cir. 1993). Based on the information provided, it is the opinion of this office that the main PCBA does not become fully functional until the addition of the the CCM and flash FPC modules, which occurs in China. ?The PCBA from South Korea is substantially transformed in China into a fully functioning PCBA that is capable of capturing and converting images. The country of origin of the subject cameras for purposes of the application of Section 301 trade remedy is China, and therefore they are subject to Section 301 duties. 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 Lisa Cariello at [email protected].
Sincerely,
Steven A. Mack Director National Commodity Specialist Division