The country of origin and marking of an electronic table top score board from Hong Kong

N308366 January 8, 2020 MAR-2-85:OT:RR:NC:N2:209 CATEGORY: Marking, Country of Origin Scott Cassell JAS Forwarding USA Inc. 6165 Barfield Road Atlanta, Georgia 30328 RE: The country of origin and marking of an electronic table top score board from Hong Kong Dear Mr. Cassell: In your letter dated December 13, 2019, you requested a country of origin marking ruling on behalf of your client, BSN Sports. The item concerned is a tabletop scoreboard, model # SK2229R. It is used to score and time a variety of sporting events such as basketball, football, volleyball, badminton, tennis, karate, wrestling, track and field, judo, boxing, etc. Score updates and changes are made either by a manual button on the device or with the use of an included IR remote. The provided BOM list approximately 206 unique individual parts/electrical elements from various countries of origin (i.e. Korea, Taiwan, China, Germany, USA, Japan, The Netherlands and Switzerland). The provided product flow document explains the manufacturing steps that take place in Hong Kong. As stated in the submitted documentation, an SMT (surface mount technology) component placement machine is used to place surface-mount devices (i.e. diodes, capacitors, resistors, LEDS, etc.) onto various printed circuit boards (PCB). Then a Reflow solder machine is used to solder the surface mount components to the printed circuit boards (PCBs). The various printed circuit board assemblies that make up this unit and its remote control (remote control assembly, horn assembly, control board, display board, power supply, etc.) are then assembled within their respective plastic housings to form the finished device and its remote control. 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, it is the opinion of this office that the manufacturing process that takes place in Hong Kong is substantial and complex. The various components are transformed within Hong Kong into a different article with a new name, character, and use. The various 206 elements/components lose their separate identities and become an integral part of a new article as a result of the manufacturing process. Accordingly, the scoreboard is considered a product of Hong Kong for origin and marking purposes. 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 Steven Pollichino at steven.pollichino@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division