OT:RR:NC:N2:220
Shanna O'Brien
Sensata
5775 W Old Shakopee Rd, Ste 100
Bloomington, MN 55437
RE: The country of origin and applicability of Section 301 Trade Remedies of a DC-DC Converter
Dear Ms. O'Brien:
In your letter dated August 19, 2024, you requested a country of origin ruling.
The merchandise under consideration is identified as the DPS-500 Converter, which is described as a bidirectional voltage converter that is designed to transform the voltage of a DC power source, such as battery storage, to a desired voltage level. The subject converter operates at a maximum of 1,500 V output.
In your letter, you state that the DPS-500 Converter is manufactured in Malaysia by assembling an insulated gate bipolar transistor (IGBT) Module, an inductor kit, a control panel, a capacitor module, electrical contactors, a heater, and busbars, into an electrical chassis. The IGBT module, which functions to convert the electricity and control the amount of power that is output from the converter, is manufactured in Malaysia along with the control panel and the inductor kit. The chassis enclosure, capacitor module, and busbars are said to be manufactured in China. The electrical contactors are made in Mexico, and the heater is made in Italy.
In Malaysia, the contactors, the inductor kit, the IGBT module, and the capacitor module, are installed into the chassis by bolting and screwing various fasteners. Next, the busbars are installed and connected to the capacitor module by screws, and the control board is installed. Throughout the assembly process, various electrical connections are made to the installed components. The DPS-500 Converter is then checked for quality control, program debugging, aging tests, and final inspection.
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).
Regarding the country of origin of DPS-500 Converter, in our view, the assembly of the inductor kit, the IGBT module, the capacitor module, the various electrical connections, and the control board, by inserting, screwing, bolting, etc. is not sufficiently complex so as to render a substantial transformation of the components being assembled. Furthermore, it is the opinion of this office that the IGBT module, and to a lesser degree the inductor kit and control board, establishes the function of the electrical converting apparatus because they are the articles within the machine that converts the electricity and produces the desired electrical outputs. Nonetheless, as both the IGBT module, the inductor kit, and the control board, are each articles of Malaysia, and the assembly work is performed in Malaysia, we find that the DPS-500 Converter is considered a product of the Malaysia for origin and marking purposes at the time of importation into the United States. Lastly, the DPS-500 Converter is not subject to Section 301 trade remedies 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