CLA-2-85:OT:RR:NC:N2:208
Misty Gibbins
Pacific Customs Brokers Inc.
2150 Peace Portal Dr. Blaine, WA 98230
RE: The tariff classification and country of origin of body-worn cameras and a docking station
Dear Ms. Gibbins:
In your letter dated September 11, 2024, you requested a tariff classification and country of origin determination ruling on behalf of Trusted Technology Solutions Inc.
The first two items in question are referred to as the Trusted T500 digital body-worn cameras, item numbers "TT-100-SXC"and "TT-100-SXCV." These cameras, which are designed to be worn on the body, contain a rechargeable lithium-ion battery. As per the requestor, the T500 cameras capture images onto non-removable storage that cannot be accessed by the user.
The last item under consideration is identified as the Trusted T500 Dock, which is described as an enclosure having a printed circuit board assembly (PCBA) with eight specialized electrical sockets and static converting circuitry. The Dock converts the supplied 100-240 VAC electricity to 15 VDC and charges the body-worn camera batteries by inserting the camera into the socket.
The applicable subheading for the Trusted T500 body-worn cameras, item numbers "TT-100-SXC"and "TT-100-SXCV," will be 8525.89.5050, Harmonized Tariff Schedule of the United States (HTSUS), “Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: Television cameras, digital cameras and video camera recorders: Other: Other: Other.” The rate of duty will be free.
The applicable subheading for the Trusted T500 Dock will be 8504.40.9550, HTSUS, which provides for “Electrical transformers and static converters…: Other: Rectifiers and rectifying apparatus: Other.” The general rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8525.89.5050, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8525.89.5050, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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, in your request, you detail two different manufacturing scenarios for the finished body-worn cameras.
In scenario one, you state that the body-worn camera manufacturing process is as follows. The bare Main PCB and the Sensor PCB are fabricated and tested for correct connectivity in China. The manufacturing of these PCBAs in China involves complex processing, including placement and soldering of numerous individual components onto a bare PCB, thereby creating functional PCBAs that results in a substantial transformation of the components. Also in China, a lens is bonded to the Sensor PCBA and adjusted to the correct length for focus. After that, an automated optical inspection (AOI) is performed on the finished PCBA to detect any soldering or placement issues. The completed main PCBA and Sensor PCBA are shipped from different companies to the United Kingdom (UK).
The main housing assembly, rear cover assembly, and PCB cradle are also manufactured in China and shipped to the UK, separately (they are not affixed together at this point and are packaged separately from each other). In the UK, the finished assembly takes place, including programming, testing, labeling, boxing and shipping.
In the second scenario, the body worn camera manufacturing process is stated to be as follows. The bare Main PCB is fabricated, tested for correct connectivity, and assembled into PCBAs in Vietnam. The Sensor PCB is fabricated, tested for correct connectivity, and assembled into PCBAs in China.
Similarly, the manufacturing of both PCBAs includes placement and soldering of numerous individual components onto a bare PCB, thereby creating functional PCBAs that results in a substantial transformation of the components. Additionally, the lens is bonded to the Sensor PCBA and adjusted to the correct length for focus in China. Both finished PCBAs undergo an automated optical inspection (AOI) to detect any soldering or placement issues and the finished PCBAs are shipped to the UK.
In this scenario, the main housing assembly, rear cover assembly, and PCB cradle are also manufactured in China and shipped to the UK, separately. Likewise, in the UK, the finished assembly takes place, including programming, testing, labeling, boxing and shipping.
Regarding the first origin scenario for the body-worn camera, the main PCBA and the sensor PCBA with the camera lens, are made in China, and contribute to the main functionality of the finished product. The complex manufacturing production of the PCBAs, which includes placement and soldering of numerous individual components onto a bare PCBs, creates functional PCBAs that results in a substantial transformation of the components to produce PCBAs of Chinese origin. Further, in this case, both of the PCBAs are made in China and the assembly process performed in the UK would not substantially transform the PCBAs of Chinese origin into a new and different article of commerce with a name, character, and use distinct from that of the exported good. Accordingly, the outcome of the first scenario, would be considered a product of China for origin purposes at the time of importation into the United States.
In regard to the second origin scenario for the body worn camera, the main PCBA is populated and manufactured in Vietnam. The sensor board with lens is made in China through complex manufacturing, which includes placement and soldering of numerous individual components onto bare PCBs, including the lens. It is the opinion of this office, that the dominant feature of the body worn camera is the Chinese sensor board that includes the lens, since it is responsible for providing the main function of the body-worn camera, which is to capture images. The manufacturing process performed in the UK, would not substantially transform the sensor board or the lens into a new and different article of commerce with a name, character, and use. Accordingly, the outcome of the second scenario, would also be considered a product of China for origin purposes at the time of importation into the United States.
Regarding the origin of the docking station, you state that a Chinese origin bare printed circuit board is imported into the UK, where multiple components, such as resistors, capacitors, voltage regulators, integrated circuits, connectors, sockets, etc. are soldered onto the bare board to produce the PCBA. The specialized sockets, which you refer to as Dock Cups, are mounted onto the PCBA that is then placed into a housing. The docking station is programmed, tested, and packaged for shipment to the United States.
In our view, the work performed to the individual components in the UK substantially transforms those components and produces a PCBA of UK origin. Furthermore, it is the opinion of this office that the PCBA, which functions to convert the input voltage and control the charging of the inserted cameras, establishes the main character of the docking station. As a result, we find that the Trusted T500 Dock is considered a product of the UK upon importation into the United States.
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 Lisa Cariello at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division