CLA-2-85:OT:RR:NC:N2:220
Luz Cazeneuve
Blue Tiger International
19 Benjamin Ave.
East Moriches, NY 11940
RE: The classification and country of origin of USB Charging Receptacles
Dear Ms. Cazeneuve:
In your letter dated May 14, 2020, you requested a country of origin ruling on behalf of your client, Wiremold Company (Legrand).
The four items under consideration are referred to as USB Charging Receptacles and are identified as Product Numbers TM826USB, R26USB, TR5262USB, and TR5362USB. The first item, PN TM826USB, is described as a combination AC duplex receptacle having two additional 5 VDC USB Type-A ports. The TM826USB consists of an internal printed circuit board assembly (PCBA), electrical contacts, a plastic housing, etc. The AC receptacle sockets are rated at 125 V and 15 A, while USB rectifying ports are rated at 5 VDC and 3.1 A.
The second item, PN R26USB, is described as a combination AC duplex receptacle having two additional 5 VDC USB ports, one Type-A and one Type-C. The R26USB consists of an internal PCBA, electrical contacts, a plastic housing, etc. The AC receptacle sockets are rated at 125 V and 15 A, while USB rectifying ports are rated at 5 VDC and 6 A.
The third item, PN TR5262USB, is described as a combination AC duplex receptacle having two additional 5 VDC USB Type-A ports. The TR5262USB consists of an internal PCBA, electrical contacts, a plastic housing, etc. The AC receptacle sockets are rated at 125 V and 15 A, while USB rectifying ports are rated at 5 VDC and 6 A.
The fourth item, PN TR5362USB, is described as a combination AC duplex receptacle having two additional 5 VDC USB Type-A ports. The TR5362USB AC consists of an internal PCBA, electrical contacts, a plastic housing, etc. The receptacle sockets are rated at 125 V and 20 A, while USB rectifying ports are rated at 5 VDC and 6 A.
In use, the subject receptacles are installed into standard residential and/or commercial electrical boxes by attaching building power to the device. The duplex receptacles provide 125 VAC power to users via the three-prong outlets, while the USB sockets provide protected rectified electricity for personal electronics, such as a laptop, mobile phone, or rechargeable batteries. As such, the subject receptacles are considered composite machines in accordance with Section 16 Note 3, Harmonized Tariff Schedule of the United States (HTSUS), where the two functions are electrical connection and the rectification of electricity. For the purposes of Note 3, machines of Section 16 are to be classified according to their principal function.
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation ("GRIs"), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs will be applied, in the order of their appearance.
Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS. GRI 3(a) states, in part, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the good. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among those which equally merit consideration.
When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS.
The ENs to Section 16 state, in pertinent part: “Where it is not possible to determine the principal function, and where, as provided in Note 3 to the Section, the context does not otherwise require, it is necessary to apply General Interpretative Rule 3 (c)”. It is the opinion of this office that neither function of the subject receptacles predominates over the other; therefore, the goods are classifiable to the function that appears last in the tariff.
The applicable subheading for the USB Charging Receptacles PN TM826USB, R26USB, TR5262USB, and TR5362USB will be 8536.69.8000, HTSUS, which provides for “ Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example…plugs, sockets…), for a voltage not exceeding 1,000 V: Lamp-holders, plugs and sockets: Other: Other." The general rate of duty will be 2.7 percent ad valorem.
With regard to the origin of the subject receptacles, the marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
The “country of origin” is defined in 19 CFR 134.1(b) 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' within the meaning of this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.”
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, 69 C.C.P.A. 151 (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).
You state that the manufacturing of each of the receptacles is the same and describe the process as consisting of wave soldering various components, such as transformers, integrated circuits, fuses, coils, transistors, resistors, diodes, capacitors, and other electronic components, onto a bare printed circuit board (PCB) in Vietnam to produce a PCB assembly of Vietnamese origin. In Vietnam, the PCB assembly is inserted into the plastic shell along with tamper resistant shutters, electrical contacts, springs, terminals, and hardware that are of Chinese origin. During the assembly process in Vietnam, the receptacles are tested and inspected.
In our view, the assembly process conducted in Vietnam to produce a multi-function electrical receptacle is complex and meaningful. The work performed to produce an electrical apparatus substantially transforms the individual components into a product of Vietnamese origin. As such, the USB Charging Receptacles PN TM826USB, R26USB, TR5262USB, and TR5362USB, are considered products of Vietnam upon importation into the United States.
This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division