The country of origin of a Side Sensing Camera Backward Module

N308136 December 18, 2019 OT:RR:NC:N:N2:208 CATEGORY: Country of Origin Jonathan Wiens PricewaterhouseCoopers LLP 1420 Fifth Avenue Seattle, Washington 98101 RE: The country of origin of a Side Sensing Camera Backward Module Dear Mr. Wiens: In your letter dated December 6, 2019, on behalf of Samsung Electro-Mechanics Co., Ltd., you requested a country of origin ruling determination. The merchandise under consideration is the Side Sensing Camera Backward (SSC-BW) module, model VSM2S752M3C, which will be mounted to the front sides of a vehicle. The SSC-BW is designed to capture video at 30 frames per second (FPS) for a vehicle capable of autonomous driving. This camera module captures and transmits video images to the vehicle's de-serializer integrated circuit for subsequent processing by the vehicle's Electronic Control Unit (ECU). Moreover, the SSC-BW does not contain any recording capability. The following is the manufacturing processes for the subject camera module: The SSC-BW's Sensor and Printed Circuit Board Assembly (PCBA) will be made in Vietnam and populated with forty-seven discrete electronic components using surface mount technology (SMT). The passive elements include thirteen resistors, twelve multilayer ceramic chip (MLCC) capacitors, six inductors, and four ferrite beads. The active semiconductor elements include: five diodes (Zener, Schottky, transient-voltage-suppression, and light emitting), six integrated circuits (serializer/line transceiver, an electrically erasable programmable read-only memory (EEPROM), DC/DC converters (2), linear power regulator, oscillator clock, and a 1.2-megapixel (MP) 1/3" complementary metal-oxide-semiconductor (CMOS) image sensor, SEMCO material number 1209-002521). In addition, the SSC-BW PCBA includes coaxial and header type electrical connectors, epoxy adhesive, solder, and a barcode label. The final assembly takes place in China. It begins with the lens, which is made in China. The cylindrical barrel of the lens is seated in an aluminum holder (made in Korea) and a plastic bracket (made in Korea) secures the subassembly to the PCBA. Next, they attach an O-ring seal, two metal screws, epoxy adhesive, and a barcode label. Last, is the packaging, which includes a plastic tray, box, box label, foam-packing pad, bag, and tape. 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. When considering a product that may be subject to antidumping, countervailing, or other safeguard measures, the substantial transformation analysis is applied to determine the country of origin. See 19 C.F.R. § 102.0; HQ 563205, dated June 28, 2006; see also Belcrest Linens v. United States, 741 F.2d 1368, 1370-71 (Fed. Cir. 1984) (finding that “the term ‘product of’ at the least includes manufactured articles of such country or area” and that substantial transformation “is essentially the test used…in determining whether an article is a manufacturer of a given country”). 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 on the facts presented, it is the opinion of this office that the PCBA with an image sensor, which was created in Vietnam, is found to be the essential character of the camera module. The assembly processes that take place in China do not result in a substantial transformation of the PCBA with an image sensor. Therefore, this camera module would be considered a product of Vietnam 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 Lisa Cariello at lisa.a.cariello@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division