CLA-2 OT: RR: NC: N4:410
Mr. Paul S. Anderson
The Anderson Law Firm, LLC
125 S. Wacker Drive, Suite 1825
Chicago, IL 60606
RE: The country of origin determination of the LED Chip on Board from Japan
Dear Mr. Anderson:
This is in response to your letter dated May 14, 2019, on behalf of your client Cecol, Inc., requesting a country of origin determination for the LED lighting "Chip on Board" (COB).
According to the sample (Model number CHU03CH1206C4-50AL7M4) and information that you have provided, the finished COB contains multiple LED dice/diodes. The base of each COB is a square aluminum substrate measuring 19 mm. Anode and cathode electrodes are printed on the aluminum substrate, which is sourced in Japan (products of Japan), on opposite ends of the article. The LED dice/diodes are connected to the electrodes on the aluminum substrate by means of wire bonding. The dice/diodes are attached to the substrate with a paste and are then covered with a silicon resin preventing humidity. The resin also encloses and spatially disperses the phosphors, and imparts color to the light ultimately emanating from the LED. It is stated that these finished COBs do not contain any other components such as drivers, housings, switches, power service or modules. They will be further manufactured into modules after imported into the United States.
It is further stated in the letter and showed in the attached Exhibits that the major components of a finished COB are the LED dice and aluminum substrate which are predominant in cost and function. An attached Exhibit indicates that virtually all but two of the parts/materials necessary to produce a finished COB article have a country of origin of Japan and one of those is used as tooling for production (capillary). None of the components of the COB itself are of Chinese origin. These Japanese origin components include the primary components of aluminum substrate with electrodes and LED dice. It also includes the resin (DB paste), PET self-adhesive film, phosphor, silicone sealant, gold wire and sealing filler. The zener diode is sourced in Taiwan and is de minimis in cost. A blade is sourced in Japan and sent to China, but the blade is not a component part of the product itself, rather it is a tool used to cut the COBs to shape in squares. Lastly, a carton box and packing tray are sourced in China. The tray is used to hold numerous COBs and the carton box is used for transportation packaging. Once the finished article has been fully assembled, it is then shipped back to Japan for inventory, packaging and shipment to the United States.
The assembly procedure is described as follows: The aluminum substrates are made in Japan with anode and cathode electrodes printed on them prior to shipping to China. LED die and diodes are inspected prior to the production assembly. The aluminum substrate is in the form of an aluminum sheet with multiple "squares" on a single larger sheet, each of which will be cut to be an individual COB. The rubber mat base on which the LED dice (wafers) are transported is stretched to expand the space between each individual LED die. The individual LED dice are tightly packed for shipment but not physically attached to one another. The stretching process creates space between the wafers so they can be picked up by the machine and placed on the aluminum substrate.
The LED dice and diode are then wire bonded to the anode and cathode electrodes on the substrate and also attached to the substrate using paste (resin-DB paste). The capillary is a needlelike component for connecting or touching a wire to an electrode or element by wire bonding. The die and diode are then covered with a silicon resin to eliminate humidity and to spatially disperse the phosphors which impart color, or lack thereof, to the light that will ultimately emanate from the COB. The COB are then "diced", inspected and packed. Dicing occurs because the master substrate sheet contains numerous individual COBs to be cut into square shapes. Dicing is a simple cutting process by length and width, which results in the individual square-shaped COBs.
Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)), defines "country of origin" 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”.
Based on the information submitted, we find that the assembly operations performed in China do not substantially transform the Japanese originating components/materials into Chinese products. The assembly process in China i.e. attaching the LED and diode to the aluminum substrates through adhesives, paste and bonding procedures, and applying protective resin/phosphor on top of those components and cutting the squares by length and width, to produce the finished COBs does not create a new and different article of commerce with a distinct character and use that is not inherent in the components imported into China. The LED dice/diodes and substrates retain their essential identity and character in the finished product of COBs.
We are of the opinion that the processing performed in China with respect to the COB does not constitute a substantial transformation of all the imported materials into "products of" China. Therefore, it is of the opinion of this office that the country of origin for the COB(s) will be Japan.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division