OT:RR:NC:N2:209
George Tuttle, III
Tuttle Law Offices
3950 Civic Center Drive, Suite 310 San Rafael, CA 94903
RE: The country of origin of a Silicon Carbide MOSFET
Dear Mr. Tuttle, III:
In your letter dated December 28, 2023, you requested a country of origin ruling on behalf of your client Navitas Semiconductor Corporation.
The merchandise at issue is a silicon carbide metal-oxide-semiconductor field-effect transistor (MOSFET),
product No. G3R40MT12-CAL. This transistor is produced in the United States in wafer form. It is produced from silicon carbide ingots (boules) that are also produced in the United States. All of the “front-end” manufacturing steps for the production of the finished die (crystal growth, fabrication,
epi-growth, photolithographic, physio-chemical processing, and chip probing) are conducted in the
United States.
After fabrication, the die, in wafer form, is shipped to China for “back-end” manufacturing steps including wafer dicing and packaging. After which the finished product is shipped back into the United States.
The front-end manufacturing process that takes place within the United States includes the following:
Single Crystal Growth
Slicing the Silicon Carbide Ingot
Grinding and Polishing of the Wafer
Double-Sided Grinding
Double-Sided Polishing
Chemical-Mechanical Polishing (CMP)
Epigrowth - HTCVD
Further Wafer Processing
Photolithography
Photoresist, Exposure, Developing
Etching and Ion Implantation
Chip Probing
The back-end manufacturing process that takes place in China includes the following:
Wafer Mount & Sawing
Plasma Cleaning
Die Attach
Wire Bonding
Molding
Plating
Trim & Form
Testing / Laser Marking / Final Visual Inspection
Packaging
Shipping back to the United States.
A complete manufacturing process description and explanation has been provided.
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).
Based upon the facts presented, it is the opinion of this office that the front-end manufacturing process that takes place in the United States, imparts the essence to the MOSFET. The wafers (which contain the die incorporating the complete transistor circuitry), manufactured within the United States do not undergo a substantial transformation as a result of the back-end processing that takes place in China. The product identity and predetermined end use is retained. The country of origin for marking purposes would be the United States at the time of importation into the United States.
It should be noted that when the country of origin is the United States, products would not be required to have any country of origin marking pursuant to 19 U.S.C. 1304 when imported into the United States.
Whether an article may be marked with the phrase “Made in the USA” or similar words denoting United States origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S.
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 Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division