Country of origin marking of Smart Glasses; Section 301

H355075 March 31, 2026 OT:RR:CTF:VSP H355075 ACH CATEGORY: Origin Ms. Suzanne Kane Akin Gump Strauss Hauer & Feld LLP 2001 K Street, N.W. Washington, DC 20006-1037 Re: Country of origin marking of Smart Glasses; Section 301 Dear Ms. Kane: This is in response to your letter dated November 11, 2025, requesting a binding ruling on behalf of your client, [ ] [ ] or “the Importer”, concerning the country of origin of Smart Glasses for marking and Section 301 duty purposes. [ ] will act as the importer of record. You have requested that certain information submitted in connection with this request be treated as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved. The information contained within brackets in this ruling or in the attachments to this ruling request, forwarded to our office, will not be released to the public and will be withheld from published versions of this ruling. FACTS: The glasses at issue are artificial intelligence (“AI”) smart glasses that offer users the opportunity to capture photos and videos, make video calls or livestream, store photos and videos, play music, make phone calls, send texts using voice commands, and talk with AI. The Smart Glasses have a front frame, right and left temple arms, and two lenses. The lenses of the Smart Glasses will be available as prescription or non-prescription, depending on what the customer chooses. The customer also has the option to select clear blue filter plano, sun plano (non-polarized), polarized, photochromic, and Rx lenses. The Smart Glasses are within the same product family as the smart glasses covered by Headquarters Ruling Letter (“HQ”) H345669, dated July 23, 2025; HQ H348154, dated August 26, 2025; and HQ H348983, dated October 20, 2025. The instant glasses will include the following enhancements: adjustable nose pads that offer a custom fit, boost comfort, and prevent slipping; removed camera cover window; overextension hinge for user comfort; three different styles and multiple different colors; larger battery capacity; multi-mic array providing for advanced wind noise reduction and clearer communications while on calls, messaging, or voice 2 control; improved speakers for audio leak suppression which provides for easier hearing; and an assignable action button that enables users to more easily invoke Artificial Intelligence (“AI”). The Smart Glasses will be equipped with a [ ] chipset that is mounted to the main logic board (“MLB”) within the product through System in Package (“SiP”) manufacturing in either Vietnam or Taiwan. SiP is a printed circuit board (“PCB”) substrate with mounted and enclosed electronic elements, whereas a traditional printed circuit board assembly’s (“PCBA’s”) components are mounted to the PCB but not enclosed. SiP manufacturing is an advanced technology in which surface mount technology (“SMT”) remains a critical step. SiP manufacturing does not replace SMT but rather builds on the traditional SMT process and allows for certain enhancements by using a different substrate and incorporating an advanced encapsulation and electromagnetic interference (“EMI”) shielding process. The SiP process allows the importer to reduce the space between components by almost a half, making the MLB more compact. The Chipset is the primary processing and communication hub for the Smart Glasses and is responsible for the flow of data, power, and communication between the other major components of the MLB. In addition to the Chipset, the MLB will incorporate a high-power main processing unit that handles heavy computing including photo and video processing, wireless communication and AI functionalities; a WiFi SiP which is a single, compact electronic component that integrates multiples chips along with passive components and an antenna, all within a single package to perform the complete function of a Wi-Fi system; a microcontroller unit (“MCU”) that handles lower computing functionalities such as sensor processing, audio playback, and microphone capture; an embedded Multi-Media Card (“eMMC”) memory chip that provides the necessary memory storage; and components that provide capacitive touch functionality that allows users to interact with the Smart Glasses through touch gestures. The importer states that the MLB performs the same functions as the MLB of the smart glasses addressed in HQ H348154. However, the SiP process takes approximately 20 times longer than the SMT process at issue in HQ H348154. The Importer states that the MLB drives the functioning of the Smart Glasses through visual and audio feedback from several other components, including the: • Flexible Printed Circuit Assemblies (“FPCAs”). The FPCAs are responsible for connecting the different components of the Smart Glasses to each other and directly or indirectly to the MLB. The left input/output FPCA contains the left side microphone, interconnects for the left speaker module for audio, and a wireless debug chipset that allows for debug at the factory and the service centers. The right input/output FPCA hosts the right side microphone, interconnects for the right speaker modules for audio, and capacitive touch sensors for user touch inputs. The SuperFlex FPCA ties the electronics on the right temple arm to the left temple arm where the MLB is located. The SuperFlex also connects the MLB to the camera module and other input/output sensors such as status indicators. • Secondary Logic Board (“SLB”) (surface mounted in Vietnam). The SLB is an auxiliary printed circuit board assembly in the Smart Glasses’ right temple arm that is responsible for connecting the SuperFlex FPCA to the right input/output 3 FPCA. The SLB contains an action button that allows the user to activate video or streaming, a second action button to activate AI, and a “capture” button to capture photos and video with the camera. • Camera. The camera is responsible for the photo and video capturing capabilities of the Smart Glasses. The main processing unit on the MLB processes data feedback from the camera sensor that is required to capture a picture. • Microphones. The microphones are responsible for the audio and voice capturing capabilities of the Smart Glasses, as well as providing noise cancellation. The main processing unit on the MLB computes voice and audio from the microphones that starts the activation of the AI. The processing unit on the MLB processes questions and inquiries by the user. Some requests must be fulfilled by the importer’s [ ] servers (e.g., AI queries requiring more processing bandwidth). These are transmitted from the main processing unit to the user’s smartphone by wireless Bluetooth connectivity and then sent from the smartphone to back-end servers for fulfillment and a response. AI’s response is then transferred back to the phone, and then back to the main processing unit of the Smart Glasses that then plays out of the speaker. • Speakers. The speakers are responsible for the sound output of the Smart Glasses. The chipset on the MLB is critical to managing the input data and communicating with the other components so the user can access key device functionalities, such as playing audio through the speakers. • Batteries. The batteries are responsible for storing energy that can be used to power the Smart Glasses. The Chipset on the MLB ensures efficient energy usage as it controls the power management system of the batteries. The batteries incorporated into the Smart Glasses are steel can batteries. The manufacturing steps for the Smart Glasses will occur in four stages: (1) the production of individual components in at least eight countries; (2) production of the MLB in the SiP Country (either Taiwan or Vietnam); (3) concurrent production of the SLB in Vietnam; and (4) final assembly, final software uploads testing, and packout (“FATP”) in China. The Smart Glasses will consist of between 500 and 550 components sourced from eight different countries including Taiwan, China, the United States, South Korea, Japan, Ireland, Germany, and Malaysia. Chinese-origin components contribute 48.5 percent of the cost, Taiwanese-origin components contribute 46.8 percent of the cost, and a majority of the components are from Japan. South Korea also provides a significant portion of the components in the Smart Glasses. Components in the MLB include the chipset, memory, other electrical engineering components (“EE”), critical integrate circuits (“ICs”), and interconnect. Components in the SLB include the PCB, interconnect, critical ICs, antenna, and other EE. Components from China include flexes, battery, camera, mechanicals (frame, hinges, logo, nose pad, buttons), audio, PCB, and other EE. Components from Taiwan include the chipset, PCB, memory, other EE, and critical ICs. While the bare PCBs account for less than two percent of the total bill of materials cost , between 400 and 500 components for the MLB and between 20 and 30 of the components for the SLB are surface mounted to the PCBs through 4 SiP and SMT to create the finished PCBAs that ultimately drive the operation of the Smart Glasses. ISSUES: (1) What is the country of origin for marking purposes of the Smart Glasses? (2) Whether the Smart Glasses are subject to Section 301 measures. LAW AND ANALYSIS: (1) Country of origin Marking The marking statute, Section 304(a), Tariff Act of 1930, as amended (19 U.S.C. § 1304(a)), provides that unless excepted, “every article of foreign origin (or its container …) imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such manner as to indicate to an 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 imported goods the country of which the goods {are} 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.” United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of Title 19 of the Code of Federal Regulations implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. 19 C.F.R. § 134.1(b) provides as follows: (b) Country of origin. “Country of origin” means 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}. The test for determining whether a substantial transformation occurs 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. Texas Instruments Inc. v. United States, 681 F.2d 778 (CCPA 1982). This determination is based on the totality of the evidence. National Hand Tool Corp. v. United States, 16 Ct. Int’l Trade 308, 312 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). The U.S. Court of International Trade (“CIT”) has stated that “if the manufacturing or combining process is merely a minor one which leaves the identity of the imported article intact, a substantial transformation has not occurred.” Uniroyal, Inc. v. United States, 542 F. Supp. 1026, 1029 (Ct. Int’l Trade 1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983) (per curiam). To determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing 5 renders a product with a new name, character, or use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the manufacturing process may be considered when determining whether a substantial transformation has occurred. No one factor is determinative. See e.g., HQ H311606, dated June 16, 2021, and HQ H302801, dated October 3, 2019. The CIT has indicated that “{f}or courts to find a change in character, there often needs to be a substantial alteration in the characteristics of the article or components.” Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308, 1318 (2016) (citing Ran-Paige Co., Inc. v. United States, 35 Fed. Cl. 117, 121 (1996) and Nat’l Hand Tool Corp. v. United States, 16 Ct. Int’l Trade 308, 311 (1992)). Courts have also considered “the ‘essence’ of a completed article to determine whether an imported article has undergone a change in character as a result of post importation processing.” Id. (citing Uniden America Corp. v. United States, 120 F. Supp. 2d 1091, 1095-1098 (Ct. Int’l Trade 2000) and Uniroyal, Inc., 542 F. Supp. 1030). In Uniroyal, Inc., the court determined that the shoe upper was “the very essence of the completed shoe” and that the attachment of the imported shoe uppers to an outer sole in the United States was a “minor manufacturing or combining process which leaves the identity of the upper intact,” therefore, the shoe upper was not substantially transformed in the United States. 542 F. Supp. at 1029-1030. The court also noted that the minor assembly operation in the United States “require{d} only a small fraction of the time and cost involved in producing the uppers.” Id. at 1030. “CBP has consistently held that the assembly of components onto a printed circuit board is a substantial transformation.” HQ H311447, dated September 10, 2020. “With respect to printed circuit boards, Customs has ruled that the complete assembly of all the components onto a printed circuit board was a substantial transformation of the printed circuit board because the assembly process was complex and involved a considerable amount of skill and time.” HQ 735306, dated December 21, 1993. “The SMT operations result in a new and different product with an overall use and function different than any one function of the individual components. Each individual component serves a particular purpose or function once incorporated into the PCBA. Prior to the SMT operations, these components are stand-alone, general use items.” HQ H302801, dated October 3, 2019. The subject Smart Glasses are similar in some ways to the wearable electronic smart device in HQ H302801. In that ruling, CBP considered the country of origin of a Fitbit device. CBP determined that, like in HQ H287548, dated March 23, 2018, New York Ruling Letter (NY) N303008, dated March 8, 2019, and HQ H301910, dated August 5, 2019, the Fitbit’s PCBA represented the essence of the Fitbit device because it incorporated the electronic components that together gave the smart device its functionality and enabled the device to operate as intended. In HQ H302801, CBP stated that “{t}he unique and full functionality of Fitbit’s devices is only accessed once the components and subassemblies are integrated and populated into the PCBA,” which is accomplished by using the SMT process in Taiwan or in another country such as Malaysia or Indonesia. The individual components, such as the Bluetooth transceivers, once incorporated into the PCBA through the SMT process, lose their identity because they cannot “individually carry out the functions of … a smart watch or … 6 track{} the user’s fitness and activity,” and become “an integral part of the new article.” CBP further stated that the final assembly process in China, which involved “{a}ttaching the PCBAs into the housing with the vibration motor, battery, display, and wristband” did not render the PCBAs into a product with a new name, character, or use. Moreover, CBP determined that the final assembly process required less training for the workers than the SMT process and was not time intensive. Accordingly, CBP concluded that the final assembly process in China did not substantially transform the PCBAs. CBP concluded that the SMT operations in Taiwan or in another country, such as Malaysia or Indonesia, “result{ed} in a substantial transformation of the electronic components from Taiwan and the Philippines into a new and different article of commerce with a new name, character, and use distinct from the components.” Accordingly, CBP determined that the country of origin for the Fitbit device was where the SMT operations occurred. Further, in HQ H322417, dated February 23, 2022, CBP found that the PCBAs were the essence of a smartwatch with a different name, character and use from the components and the blank circuit board that underwent the SMT process. The smartwatch was composed of between 800 and 900 components, more than 700 of which were incorporated into two PCBAs using the SMT process in Taiwan. When incorporated onto the printed circuit board, the individual components and the blank printed circuit board developed a new name, a PCBA. See HQ H311447, dated September 10, 2020 (stating that “CBP has consistently held that the assembly of components onto a printed circuit board is a substantial transformation”), and HQ H302801, dated October 3, 2019. In addition, in HQ H345669, dated July 23, 2025, HQ H348154, dated August 29, 2025, and HQ H348983, dated October 20, 2025, CBP determined that the PCBAs were the essence of similar smart glasses and that the smart glasses were products of the countries where the PCBAs were manufactured through SMT. However, the country of origin of a PCBA does not automatically determine an article’s country of origin. In HQ H328859, dated June 10, 2024, CBP found that, even though the PCBA of a printer was manufactured in Japan, the country of origin of the printer was China. In this case, by quantity, approximately 97 percent of all components were produced in China. Further, CBP found that, although the PCBA and Japanese-origin firmware enabled the thermal printers to communicate with external devices and process the images to be printed, other components and assemblies were also critical in enabling the printer to form text or images and apply heat to the paper to create text or images. In this case, the individual components and the blank circuit board undergo a change in character when the components are assembled onto the blank circuit board and become PCBAs via the SiP and SMT processes. The PCBAs in the instant case, like the PCBAs in HQ H302801, form the “brain” of the device and enable the device to function as intended. Through the SiP and SMT processes the components, including the [ ] chipsets in each set of glasses, change in character from individual components capable of limited functions and a blank circuit board incapable of any functions to PCBAs that represent the essence of the Smart Glasses because they enable the Smart Glasses to function. 7 The individual components and the blank circuit board undergo a change in use when the components are assembled onto the blank circuit board and become the printed circuit board assembly via the SiP and SMT processes. Like some of the components in HQ H302801, the individual components and blank circuit board are “stand-alone, general use items” that are usable in other devices and do not alone accomplish the full functionality of the Smart Glasses. In this case, the MLBs allow the device to capture photos and videos, make video calls or livestream, store photos and videos, play music, make phone calls, send texts using voice commands, and talk with AI. Before the components are assembled onto the blank circuit board, each of the individual components is only capable of limited functions and the blank circuit board is not capable of any functions. The functionality of the Smart Glasses is dependent on the collective capabilities of the PCBAs. Further, even though almost half of the components’ cost in these glasses, like in HQ H328859, is contributable to components of Chinese origin, CBP does not find that the country of origin of these Smart Glasses is China. Unlike in HQ H328859, the MLB and SLB are the essence or brain of these devices, and the components are not essentially all from China. The Smart Glasses cannot perform any of their unique, technological functions without them. Although these glasses may have prescription lenses, we believe that the technological abilities of these Smart Glasses are the driving force of consumer desire for this product. The other elements of the Smart Glasses provide ancillary benefits but primarily allow users to access the content of the MLB and SLB. The additional components added, like in Uniroyal, do not change the essence of the Smart Glasses provided by these PCBAs. Additionally, the FATP process occurring in China does not take a significant amount of time. CBP is satisfied that, because the MLB and SLB are the “brain” of the Smart Glasses, the FATP does not result in a substantial transformation. After the MLB and SLB have been assembled, the Smart Glasses do not undergo any operations that change their name, character, or use. Based on the facts presented, we conclude that the PCBAs are the essence of the Smart Glasses, and the Smart Glasses are products of Vietnam or Taiwan, depending on where the PCBAs are manufactured through SiP and SMT. The Smart Glasses should be marked accordingly at the time of importation into the United States. (2) Are the Smart Glasses subject to Section 301 measures? The United States Trade Representative has determined that an additional ad valorem duty will be imposed on certain Chinese imports pursuant to USTR’s authority under Section 301(b) of the Trade Act of 1974 (“Section 301 measures”). See Section XXII, Chapter 99, Subchapter III, U.S. Note 20, HTSUS. The substantial transformation analysis is applicable when determining the country of origin for purposes of applying Section 301 measures. See HQ H301494, dated October 29, 2019, and HQ H301619, dated November 6, 2018. In this case, the Smart Glasses are not subject to the additional Section 301 measures because the country of origin of the Smart Glasses is Vietnam or Taiwan, where the PCBAs are manufactured by SiP and SMT operations. 8 HOLDING: The country of origin of the Smart Glasses for purposes of marking and for purposes of additional Section 301 measures is Vietnam or Taiwan. Therefore, the Smart Glasses are not subject to Section 301 measures. 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 Customs Service 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