Country of Origin of NEOCLEAN CLETOP™ OPTIPOP™ SERIES; Optical Connector Cleaner Products

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H304238 November 10, 2020 OT:RR:CTF:VS H304238 TMF CATEGORY: Origin Koji Amikura, General Manager “K” Line Logistics (U.S.A.), Inc. 265 South Prospect Avenue Itasca, Illinois 60143 RE: Country of Origin of NEOCLEAN CLETOP™ OPTIPOP™ SERIES; Optical Connector Cleaner Products Dear Mr. Amikura: This is in response to your request for a binding country of origin and determination, which was received May 15, 2019 by the National Commodity Specialist Division in New York which transferred your request along with samples to this office for our response on June 14, 2019. FACTS: The subject goods are the NEOCLEAN-E and NEOCLEAN-EZ, both designed to clean contamination from the end-face of fiber optic connectors, PC’s and digital cameras, which are developed by NTT Advanced Technology Corporation (NTT-AT). You provided a patent for these two products, which is US Patent No. US8402587. Both products use a simple one push mechanical action to quickly and effectively remove oil, dust, and dirt particles from fiber optic connectors. The NEOCLEAN-EZ has a compact design as opposed to the NEOCLEAN-E, and the NEOCLEAN-EZ can clean 2.5mm and 2mm port plugs. In both models, i.e., the NEOCLEAN-E/EZ, the user inserts the cleaning tip into the optical ferrule and then pushes it in to advance a cleaning thread to remove the dust and absorb oil. The mechanical pushing action rotates the tip and advances a new cleaning thread each time. The advancing and functioning of the device is done by the apparatus and not by a battery. As the tip rotates, the fiber end-face is effectively cleaned. The main components of the cleaning device, i.e., the cleaning thread, the component referred to as the chip and the springs (which consists of the slider, guide and chip types), are manufactured in Japan and shipped to China for assembly with Chinese manufactured components. Parts made in China are: the MU cap, reel, SC/ST cap, string, caulking ring and conversion cap. Assembly steps include screwing, gluing and press fitting without further machining. ISSUE: What is the country of origin of the NEOCLEAN-E and NEOCLEAN-EZ? LAW AND ANALYSIS: You believe that these optical connector cleaners should be classified under subheading 3926.90.9990, Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”), as other articles of plastic, with China as the country of origin. However, the product should be classified in subheading 8479.89.9499, HTSUSA, which provides for: “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Other: Other.” The United States Trade Representative (“USTR”) has determined that an additional ad valorem duty of 25% will be imposed on certain Chinese imports pursuant to its authority under Section 301(b) of the Trade Act of 1974 (“Section 301”). The Section 301 measures apply to products of China enumerated in Section XXII, Chapter 99, Subchapter III, U.S. Note 20(b) and (f), HTSUS. Among the subheadings listed in U.S. Note 20(b) and (f) of Subchapter III, Chapter 99, HTSUS, are 8479.89.9499, HTSUS. When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use which differs from the original material subjected to the process. United States v. GibsonThomsen Co., 27 C.C.P.A. 267 (C.A.D. 98) (1940). In order to determine whether a substantial transformation has occurred, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. CBP has stated that a new and different article of commerce is an article that has undergone a change in commercial designation or identity, fundamental character, or commercial use. A determinative issue is the extent of the operations performed and whether the materials lose their identity and become an integral part of the new article. 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). The Court of International Trade (“CIT”) has applied the “essence test” to determine whether the identity of an article is changed through assembly or processing. For example, in Uniroyal, Inc. v. United States, 3 C.I.T. 220, 225 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983), the court held that imported shoe uppers added to an outer sole in the United States were the “very essence of the finished shoe” and thus were not substantially transformed into a product of the United States. Further, the court noted that the attachment of the outsole to the upper was a minor manufacturing or combining process which left the identity of the upper intact. You state that the most important part of the product is the plastic cleaning thread as it removes the dust and absorbs oil. You state that the thread is key to both the products’ design for optical connector end face cleaning. You also state that the chips, SC and MU chips, which are molded in Japan are “very precise” in order to hold the cleaning thread. We reviewed your schematics and agree that in this case, the essence of the two optical connector cleaners are the cleaning thread, the cleaner chips and springs components, all of which are made from raw materials in Japan. These components are sent to China in their pre-formed state for minor assembly that consists of screwing, gluing and press fitting with other Chinese manufactured components and that leave the identity of the cleaning thread intact. As such, we do not believe a substantial transformation occurs in China. See Uniroyal supra. Therefore, we find the country of origin to be Japan. HOLDING: Based on the facts in this case, the country of origin of the NEOCLEAN-E and NEOCLEAN-EZ is Japan. The classification of the subject merchandise is subheading 8479.89.9499, HTSUS. Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.” A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction. Sincerely, Monika R. Brenner, Chief                             Valuation and Special Programs Branch