The country of origin of a fiber optic jumper assembly

N300603 October 1, 2018 MAR-2 OT:RR:NC:N2:209 CATEGORY: MARKING Paula Connelly Law Offices of Paula M. Connelly 100 Trade Center, Suite 660 Woburn, MA 01801 RE: The country of origin of a fiber optic jumper assembly Dear Ms. Connelly: This is in response to your letter dated September 16, 2018, requesting a ruling on behalf of your client, Senko Advanced Components, Inc., regarding the country of origin and marking requirements for a fiber optic jumper assembly imported from Vietnam or China. The item concerned is a fiber optic cable referred to as a jumper assembly. The jumper assembly, part number DZ2-012-CCA-0300 1.5m, consists of a ribbonized cable, dust caps, connectors, housings, boots, ferrules, hytrel color tubes and a fan-out kit. The optical fiber ribbon cable is made from a process called “ribbonization” whereby existing single strands of optical fibers, purchased from an optical fiber manufacturer in the United States, are arranged side-by-side and then coated and encapsulated in a UV cured acrylate resin, thus creating a “ribbon” structure. The ribbonized cable is then wound onto a reel. The optical fibers are processed into a ribbonized cable in China. The origin of the individual optical fibers is the United States. It is the opinion of this office that the processing of the optical fibers into the ribbonized cable is not considered a substantial transformation. Upon completion of the ribbonization process, the cable will be shipped to Vietnam, or alternatively remain in China, for further processing. To further process the ribbon cable into the finished jumper assembly, the 12 fibers are fanned out and then hytrel color tubes are inserted onto each fiber. After the fan-out process, the connectors, dust caps, housings, and boots are assembled onto each fiber and the fiber is cleaned and then inserted into the ferrules. Once this is completed, the assembly is fixed with epoxy and heated by oven to cure the epoxy. The next step is to polish the tip of the ferrules with a polishing machine. Each port will then be tested with power meters and the end face of the ferrules will be inspected. The final step will be to pack them into plastic bags and label with the test results. The origins of the components are as follows: The 1.5m cable is ribbonized in China from 12 U.S. origin optic fibers; The Dust Cap, Housing, and Boot are Taiwanese origin; and The 1mm Connector kit, Ferrule, and hytrel tube are China origin. The processing will take approximately 50 minutes as detailed below: Preparing material – cutting the fiber 1.2 minute Connector Assembly 1.5 minute Polishing and inspection 3.13 minute Fan-out process/epoxy/curing 41.98 minute Final packing/inspection 3.16 minute The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article. 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; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.” For tariff purposes, the courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). Based upon the facts presented and the pertinent authorities, it is the opinion of this office that the U.S. - origin ribbonized optical fiber cable, is not substantially transformed into a new and different article of commerce with a name, character, and use distinct from the article exported. Therefore, the fiber optic jumper assembly is considered a product of the United States for marking purposes. Accordingly, the fiber optic jumper assembly will not be required to have any country of origin marking pursuant to 19 U.S.C. 1304 when imported into the United States. 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. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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, contact National Import Specialist Steven Pollichino at steven.pollichino@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division