OT:RR:NC:N2:220
Marva Washburn
Omni Trade Services
3200 Olympus Blvd
Dallas, TX 75019
RE: The country of origin of control boards
Dear Ms. Washburn:
In your letter dated November 11, 2024, you requested a country of origin ruling on behalf of your client, Assa Abloy Global Solutions .
There are two items under consideration that are identified as the Lock Control Unit (LCU) and the Lock Case Adaptor (LCA), which are described as electronic printed circuit board assemblies (PCBAs) designed to control the locking and unlocking mechanisms of doors. The LCU PCBA interfaces with various access control systems and secure radio frequency identification processes using Bluetooth and/or Near Field Communication (NFC) interfaces. The LCA PCBA controls the electric motor that drives the blocking mechanisms to open the lock when access credentials have been validated.
In your request, you provide three origin scenarios where the subject control boards will be manufactured in either Malaysia, Vietnam, or Cambodia. You state that the LCU and the LCA PCBAs are manufactured by means of a surface mount soldering process where numerous individual electronic components of various origins, such as capacitors, integrated circuits, resistors, diodes, fuses, relays, etc. are soldered onto bare printed circuit boards. Electrical connectors and wires are soldered onto the boards, the boards are inserted into a plastic frame, and the PCBA is encased in a polyurethane compound. Lastly, you explain that the PCBAs are inspected, tested, and packaged for export to the United States.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) 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).
Regarding the country of origin of the LCU/LCA PCBAs in the first scenario, where both control boards are manufactured in Malaysia, in our view and based on the facts presented, the assembly operations conducted in Malaysia are complex and substantially transform the individual components into new article in name, character, and use. Likewise, in the remaining two scenarios occurring in Vietnam and/or Cambodia, the identical manufacturing processes of soldering the individual components onto a bare printed circuit board occurs and affects a substantial transformation of those components to produce electrical control boards. Therefore, it is the opinion of this office that the assembly operations conducted in Malaysia, Vietnam, and Cambodia, result in a substantial transformation of the individual components and the Lock Control Unit and the Lock Case Adaptor boards are considered a product of Malaysia in scenario one, Vietnam in scenario two, and Cambodia in scenario three, for origin and marking purposes at the time of importation into the United States.
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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division