OT:RR:NC:N2:208
Richard Suh
Toshiba Logistics America, Inc.
501 Burning Tree Rd Fullerton, CA 92833
RE: The country of origin of a thin-film transistor (TFT) liquid crystal display (LCD) module
Dear Mr. Suh:
In your letter dated February 14, 2025, on behalf of JDI Display America Inc., you requested a country of origin ruling.
The merchandise under consideration is a thin-film transistor (TFT) liquid crystal display (LCD) module, model number LPM031G483B, which is designed for integration into automotive systems for heads-up displays (HUDs). This display module includes a signal reception, inclusive of low voltage differential signaling (LVDS), a signal distribution to individual pixels, and an image display. Based on the information provided, the subject TFT-LCD module does not contain any video signal conversion capabilities.
In Japan, the following steps occur. First, the process starts with a glass substrate, which entails multiple steps in the chemical vapor deposition machines to build a TFT array structure on the substrate. Then, the color filter is made on a matching and separate glass substrate. Next, the LCD panel is filled using a one drop fill (ODF) process, which is applied to the entire TFT array substrate. During this process, the liquid crystal material is compressed between the TFT array side, and the color filter glass substrate is added and aligned on top. This process creates a sheet of TFT-LCD cells that will later be cut into individual cells.
In China, the substrate is cut into “chips” and assembled. The assembly entails taking the LCD cell (the "chip"), and affixing driver integrated circuits (ICs), polarizers, flexible printed circuit(s) (FPC(s)), a backlight, and the frame. Lastly, it goes through outgoing quality testing.
When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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 our opinion that the completed TFT-LCD cells, regardless of where they are cut to size, are the dominant component that provides the character of the finished flat panel display modules. The complex manufacturing process performed in Japan renders the end-use of the cells predetermined, as they cannot be used for any other purpose than a display. Further, the cutting and assembly processes performed in China would not substantially transform the cells into new and different articles of commerce with a name, character, and use distinct from that of the exported good. Accordingly, the country of origin of this TFT-LCD module is Japan.
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