The classification, country of origin, and marking of USB security tokens

N361165May 15, 2026OT:RR:NC:N2:212
CATEGORY: Classification; Origin; MarkingMr. Alexis SantiagoThales DIS CPL USA Inc.Arboretum Plaza II9442 Capital of Texas Highway North, Suite 400Austin, TX 78759RE: The classification, country of origin, and marking of USB security tokensDear Mr. Santiago:In your letter dated
April 30, 2026
, you requested a classification, country of origin, and marking ruling.The merchandise under consideration is described as four versions of USB security tokens, individuallyidentified as the Sentinel HL Mini Green (part number 842-000545-001), the Sentinel HL Basic (part number942-001525-001), the Sentinel HL Max (part numbers 942-001527-001 and 921-000146-001), and theSentinel HL Pro (part number 942-001526-001). The devices are virtually identical in design with only minordifferences in size, firmware, and software specifications. The devices are comprised of a printed circuitboard assembly (PCBA), attached to a USB connector and encased within a plastic enclosure. The subjectdevices are also known as security dongles, and function as a physical key that authenticates software withina personal computer. The user receives the dongle, which is loaded with licensing information andcryptographic keys that are checked by the software, ensuring that the user has authorized access.In your request, you state that the manufacturing process for all of the subject tokens is the same. Thisprocess begins with the manufacture of the PCBA in Cambodia. This process includes the placing of theindividual electrical components, via surface mount technology (SMT), onto a bare board. This finishedboard is then attached to the USB connector and enclosed within a plastic housing. The finished token is thensent to the Netherlands where it is programmed and laser etched with product information. The device is thentested and packaged for shipment to the United States.ClassificationIn your request, you suggest that the correct classification for the subject devices is under subheading8471.80.1000, Harmonized Tariff Schedule of the United States (HTSUS). We agree.
The applicable subheading for the Sentinel HL Mini Green, Basic, Max, and Pro, will be 8471.80.1000,HTSUS, which provides for “Automatic data processing machines and units thereof: Other units of automaticdata processing machines: Control or adapter units.” The general rate of duty will be Free.Origin and MarkingWhen determining the country of origin, the substantial transformation analysis is applicable. See, e.g.,Headquarters Ruling Letter H301619, dated November 6, 2018. The test for determining whether asubstantial 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).Additionally, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unlessexcepted, every article of foreign origin imported into the United States shall be marked in a conspicuousplace as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such amanner as to indicate to the ultimate purchaser in the United States, the English name of the country of originof the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should beable to know by an inspection of the marking on the imported goods the country of which the goods is theproduct. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may,by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking shouldinfluence his will.” See United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940).Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements thecountry of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBPRegulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, orgrowth of any article of foreign origin entering the United States. Further work or material added to an articlein another country must effect a substantial transformation in order to render such other country the “countryof origin” within the meaning of the marking laws and regulations.Regarding the origin of the subject security tokens, it is the opinion of this office that the PCBAmanufactured in Cambodia imparts the character of the finished device. The advanced manufacturingprocesses performed in Cambodia, including the SMT process, gives the device its essential functionality.Further, the process performed in the Netherlands is simple in nature and would not substantially transformthe device. The country of origin for marking and trade remedy purposes will be Cambodia.The holding set forth above applies only to the specific factual situation and merchandise description asidentified 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 theinformation furnished in the ruling letter, whether directly, by reference, or by implication, is accurate andcomplete in every material respect. In the event that the facts are modified in any way, or if the goods do notconform to these facts at time of importation, you should bring this to the attention of U.S. Customs andBorder 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 periodicverification by CBP.This ruling is being issued under the provisions of Part 177 of the Customs and Border ProtectionRegulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documentsfiled at the time this merchandise is imported. If you have any questions regarding the ruling, please contactNational Import Specialist Luke LePage at [email protected].
Sincerely,
(for)James P. ForkanDirectorNational Commodity Specialist Division