MAR-2 OT:RR:NC:N4:410
Mr. Long Vu
Customs Compliance Manager
Walgreen Co.
304 Wilmot Road
MS #3163
Deerfield, IL 60015
RE: The country of origin determination of light sets
Dear Mr. Vu:
This is in response to your letter dated August 3, 2018, requesting a country of origin determination for four (4) items of "Indoor/Outdoor Light Sets.”
The subject merchandise is Walgreens’ Items Code ("WIC") 861656, 866364, 982958, and 983358, light sets used for Christmas trees. The miniature series light sets WICs 861656 & 866364 utilize LED bulbs, and the miniature series light sets WICs 982958 & 983358 utilize incandescent bulbs.
According to your letter, each item is comprised of the following components: a Cord Connector, Electric Wires, Lead Contacts, Fuses, Lamp Base/Husk, Lamp Cover/Crust, Light Bulbs, Color Boxes, UL labels and a Carton Box. You have stated that all the components are purchased from China (made in China), except for the UL label, which is from the United States, and the packing material (carton box) is from Cambodia.
You described the Cambodian’s assembly operation processing steps as follows:
Connect the light bulbs to lamp base to make the lamp
Connect the lamp, lamp husks, wires, copper contact to make the unilateral wire
Cut and peel the wire then clamp it to terminal(s)
Assemble lamp socket
Assemble the plug and connector
Twist main stings and unilateral strings together
Test the light set and then tidy up light sets
Pack the spare parts for spare part packet
Assemble the plastic crust (for WIC 861656 and 866364 only)
Perform the Final Inspection & Packing
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”.
The assembly operations performed in Cambodia does not substantially transform the Chinese and U.S. originating components/materials into Cambodian products. The assembly in Cambodia of the individual components to produce the finished Christmas light sets 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 Cambodia.
Based on the information submitted, we are of the opinion that the processing performed in Cambodia with respect to the Christmas tree light sets does not constitute in a substantial transformation of all of the imported materials into "products of" Cambodia. Therefore, as the "product of" requirement has not been satisfied, the Christmas tree light sets are not eligible for duty-free treatment under the Generalized System of Preferences (GSP).
For tariff purposes, it is of the opinion of this office that the components/martials remain the country of origin of China. Therefore, the country of origin for the “Walgreens’ Items Code ("WIC") 861656, 866364, 982958, and 983358, light sets used for Christmas trees” will be China.
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 Hope Abada at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division