The country of origin of lightning cables

N307353 November 22, 2019 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin David Newman David Newman, Attorney-at-Law 45 Village Gate Way Nyack, NY 10960 RE: The country of origin of lightning cables Dear Mr. Newman: In your letter dated November 4, 2019, you requested a country of origin determination on behalf of your client, Staples, Inc. The items under consideration are described as lightning cables that will be imported at lengths of 3 feet, 6 feet, and 10 feet. The cables are comprised of a length of insulated wire affixed with a lightning-style connector at one end and a male USB at the other. The finished cables are designed to connect a variety of mobile devices to host units or charging stations. In your request, you state that the lightning cables are manufactured in Vietnam using Chinese origin components. The process performed in Vietnam is explained as follows. Single copper strands of Chinese origin are drawn, cut, and bunched together to form a braided copper conductor. The number of single strands incorporated into each conductor is dependent upon the length of the finished cable as the shorter cables require fewer strands. The conductor is then shielded and insulated with nylon yarn, polyethylene, and aluminum foil. The ends of the cables are then peeled and the USB and lightning cables are attached. The finished cables are tested and packaged for retail sale. The “country of origin” is defined in 19 CFR 134.1(b), in pertinent part, 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.” 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). 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, “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. Regarding the country of origin of the subject lightning cables, based on the information provided it is our opinion that the drawing, braiding, insulating, and shielding of the Chinese originating single copper strand in Vietnam adds significant electrical properties and capabilities that would substantially transform the strands into a new and different article with a name, character, and use distinct from the exported article. Further, though all Chinese origin parts are important to the function and structure of the cable, they lose their separate identities and become and integral part of a new article as a result of the assembly process. Therefore, based upon the facts presented in this case, it is the opinion of this office that the country of origin of the 3-foot, 6-foot, and 10-foot lightning cable is Vietnam. 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 Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division