OT:RR:NC:N4:410
Jessy Osterhoudt
NMB Technologies Corporation
155 Lexington Drive Laconia, NH 03246
RE: The country of origin of LED flashlights
Dear Ms. Osterhoudt:
In your letter dated February 11, 2025, you requested a country of origin ruling on LED flashlights for marking purposes.
The merchandise is two models of flashlights, identified as the ABC and DF. The ABC is in an oval shape and the DF is in a cylindrical shape.
The LED flashlights each consist of a light head and a plastic housing. The light head, depending on the model, comprises the components, e.g., a lens retainer, lens, reflector, bezel, metal core board, and PCBAs (printed circuit board assemblies). The housing comprises a plastic body, switch and an end cap, etc.
The final assembly will occur in the United States. The factory(ies) in the United States will import all of the components or parts from various countries, e.g., China, Vietnam, etc., and assemble them with the U.S.-origin PCBAs (which form the LED light source) to make the finished flashlights. In the presented manufacturing processing scenario, the PCBAs are the only components made in the United States.
The assembly process in the United States begins with the production of the PCBAs, in which, the PCBs or PWBs (printed wiring boards) are populated with the electronic components via the SMT (surface mount technology) process. The SMT process involves mounting the main integrated circuit, as well as various capacitors, transistor, varistors, connectors, fuse and diodes, etc. In particular, the PCBAs (for the light heads) are populated with the LEDs to make the light source during the process.
In the final assembly, the process for model ABC is as follows: assemble main PCBA and outer body case, assemble heatsink assembly, apply glue to the switch cover, assemble flashlight body and heatsink, glue switch cover to body, test the flashlight to ensure proper functionality, then attach belt clip to body, appearance quality check, and finally package for delivery. Similarly, the process for model DF is as follows: assemble bezel assembly, test bezel assembly and adjust as necessary, assembly body portion, assembly bezel and body together, additional function test, appearance quality check, and finally package for delivery.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will. See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (CBP) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines country of origin 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 the marking laws and regulations.
A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).
We find that, although almost all the parts or components are imported (non-U.S.-origin) and the assembly operations of components into the finished flashlights are not complex, the PBCAs (including light source) are fabricated in the United States. They are the most important or critical components in the subject LED flashlights, which also impart the character of the LED flashlights in this case. The SMT process with other assembly operations performed in the United States are complex and meaningful, thus, the substantial transformation has occurred, and the country of origin of the LED flashlights is the United States for marking purposes.
If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. 1304.Whether an article may be marked with the phrase Made in the USA or similar words denoting U.S. 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 Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division