The country of origin of RF Generators from Malaysia

N302117 February 25, 2019 MAR-2 OT:RR:NC:N1:104 CATEGORY: ORIGIN Ms. Meredith DeMent Baker McKenzie LLP 815 Connecticut Avenue Washington, DC 20006 RE: The country of origin of RF Generators from Malaysia Dear Ms. DeMent: In your letter dated dated December 6, 2018 on behalf of your client Advanced Energy Industries, Inc., you requested a country of origin ruling. A RF (“radio frequency”) Generator produces RF power for specific purposes. While the function remains the same, the RF Generators can be configured for use in a specific application. In this instance, information in your submission indicates that the RF generators under consideration are principally used in semiconductor manufacturing. In this specific manufacturing operation, the three critical subassemblies of the generators, i.e., the DC, the RF and the Logic subassemblies, are said to be “dedicated and programmed for use in the specific RF Generator model ordered by the customer when it is manufactured in Malaysia”. The function of the DC subassembly is to allow the unit to take power from an outlet and convert it to power that can be used by the other internal components. The RF subassembly provides electrical current as a radio wave. The Logic subassembly performs all the communication within and outside of the RF Generator. It also measures output power, voltage, and current and calculates the impedance of the load. The Logic subassembly provides digital control and frequency tuning. The critical components of the Logic subassembly are the customized printed circuit board assemblies (“PCBAs”). These PCBAs are also manufactured in Malaysia. The AC (“alternating current”) tray chassis is the basis chassis to which the DC, the RF and the Logic subassemblies will be attached. In addition to the three subassemblies, the AC tray chassis is also manufactured in Malaysia. It is noted that these subassemblies are manufactured in Malaysia from components of various foreign origins including Malaysia. These three subassemblies, along with the AC tray chassis, are shipped to China for final assembly into a finished RF Generator. The final assembly operation performed in China consists of simple assembly, such as mounting the subassemblies to the AC tray chassis using connecting cables and wiring. Upon completion of the assembly process, the generator undergoes testing and is packaged for shipment from China. In 19 C.F.R. § 134.1(b), “country of origin” is defined 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.” In this instance, the “name, character and use” test must be applied in order to determine whether a substantial transformation has occurred. The court has said that “A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use that differs from the original material subjected to the process”. The court in National Hand Tool Corp. v. United States determined that imported forgings, in that case, were not substantially transformed as (1) the articles had been forged “into their final shape before importation” into the United States and (2) “the form of the components remained the same” after the processes performed in the United States. The court concluded that no substantial change in name, character or use had occurred as a result of the processing performed in the United States. Likewise, in this case, the subassemblies and the AC tray chassis are all manufactured to their final specifications in Malaysia prior to their exportation to China. Their use is predetermined prior to processing in China. The articles have the same name both before and after processing in China. In addition, the simple assembly operations performed in China do not result in a substantial transformation. Thus, the country of origin for the RF generators, as described above, is Malaysia. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Patricia O’Donnell at patricia.k.odonnell@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division