CLA-2-84:OT:RR:NC:N2:220
Jason Liao
GBT INC
17358 Railroad St.
City of Industry, CA 91748
RE: The tariff classification and country of origin of a motherboard from Taiwan
Dear Mr. Liao:
In your letter dated May 27, 2021 you requested a tariff classification and origin ruling.
The merchandise under consideration is identified as the Motherboard, PN B560-DS3H-AC-YI-B, which is described as an ATX form factor printed circuit board assembly (PCBA) that is principally used as an automatic data processing (ADP) machine. At the time of importation, the PCBA incorporates the BIOS, memory slots, expansion slots, cache memory, and numerous internal connectors to function as the ADP machine. Additionally, the PCBA incorporates onboard graphics processing, audio processing, wireless/wired communication, and numerous connections, such as HDMI, USB, RJ45, etc. However, we would note that the PCBA is not imported with the CPU or memory installed, which you state is added post-importation. The PCBA is imported in bulk boxes of 10 boards per box with I/O shields and cables.
The applicable subheading for the Motherboard, PN B560-DS3H-AC-YI-B, will be 8473.30.1180, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Parts and accessories … suitable for use solely or principally with machines of headings 8469 to 8472: Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube: Printed circuit assemblies." The general rate of duty will be Free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
Regarding the country of origin of the Motherboard PCBA, you state that the board is manufactured in Taiwan by surface mounting individual components, such as resistors, capacitors, integrated circuits, transistors, diodes, connectors, etc., of various origins, onto a bare board via an SMT machine. Also, in Taiwan, additional components are hand soldered onto the assembly, the board is inspected, tested, and packed for export.
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.”
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).
Subsequent to the review of the provided information, we are of the opinion that the manufacturing of the PCBA by soldering individual components onto a bare printed circuit board substantially transforms the bare PCB, resistors, capacitors, integrated circuits, transistors, diodes, connectors, etc. into a new article of commerce with a name, character, and use distinct from the articles imported into Taiwan. Consequently, the Motherboard, PN B560-DS3H-AC-YI-B is a product of Taiwan for origin and marking purposes at the time of 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