The country of origin of fiber optic connectors

N305277 August 1, 2019 CLA-2-85:OT:RR:NC:N2:220 CATEGORY: Origin Brianna Woodsby AFL 170 Ridgeview Center Dr. Duncan, SC 29334 RE: The country of origin of fiber optic connectors Dear Ms. Woodsby: In your letter dated July 12, 2019 you requested a country of origin ruling. The merchandise under consideration is identified as the LC Quad Adapter, which is described as a connector used with fiber optics. The LC Quad Adapter is comprised of plastic molded components and is used to facilitate the physical connection between optical fibers. We would note that the subject connector does not enhance, amplify, or alter the optical signal in any way. Based on the information supplied, the LC Quad Adapter is assembled in Vietnam from parts that you identify as two plastic adapter housing halves, four dust caps, a shutter retainer, a metal clip, four shutters, two stoppers, and four ceramic sleeves. The assembly process in Vietnam consists of loading a sleeve onto an adaptor half, ultrasonic welding the two adapter halves together, loading the shutter retainer and shutters, loading the stoppers, testing and packaging the product. In your request, you state that the adapter housing halves can be sourced from Japan or China, where the balance of the components are from China. 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.” 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, 69 C.C.P.A. 151 (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). Further, in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade (“CIT”) interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight, and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted that “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an example, National Hand Tool Corp. v. United States, 16 C.I.T. 308, 310, aff’d 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article. In our opinion, the assembly process of ultrasonically joining the adapter halves and inserting the connector parts to form a finished fiber optic connector is basic and does not result in a substantial transformation of the individual components. Furthermore, prior to assembly the various connector components have a pre-determined end use that is not changed as a result of the operations performed. The components themselves are not transformed in Vietnam into a new and different article of commerce with a name, character, and use distinct from the article exported. Regarding the origin of the assembled LC Quad Adapter, it is the opinion of this office that the adapter housing halves provide the essence of a finished fiber optic connector. Therefore, when the adapter housing halves are sourced from Japan, the LC Quad Adapter is considered a product of Japan for origin and marking purposes at time of importation into the United States. Conversely, when the adapter housing halves are sourced from China, the LC Quad Adapter is considered a product of China for origin and marking purposes at the time of importation into the United States. 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 Karl Moosbrugger at karl.moosbrugger@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division