The country of origin of a power supply

N308372 January 7, 2020 CLA-2-85:OT:RR:NC:N2:220 CATEGORY: Origin Morgan Mo High Power Electronics Co., Ltd. 6F-6, No., 21, Lane 583, Ruiguang Rd Taipei City Taiwan RE: The country of origin of a power supply Dear Mr. Mo: In your letter dated December 16, 2019 you requested a tariff classification ruling. The merchandise under consideration is identified as a Power Supply for a Personal Computer, Model No. HP1-J700GD-F12S, which is described as a steel enclosure containing a printed circuit board assembly (PCBA), connectors, and multiple output cable harnesses for connecting to various components within an automatic data processing (ADP) machine. You state that the subject switching power supply has a maximum power output of 700 Watts and is assembled in Vietnam from component materials that are sourced from China and Taiwan. In your request, you state that the power supply is assembled in Vietnam by soldering components, such as resistors, capacitors, integrated circuits, fuses, diodes, etc., onto a bare PCB. Once the board is completed and function tested, the PCBA, which functions to convert the input voltage to multiple outputs for use within the ADP machine, is mounted inside an enclosure, a fan is installed, various wiring and connectors are attached, and the finished product is tested. With regard to the origin of the switching power supply, 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 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). Based upon the facts presented and the pertinent authorities, it is the opinion of this office that the assembly of the PCBA by surface mounting integrated circuits, transistors, resistors, transformers, capacitors, etc. onto a bare PCB and the final assembly operations result in a substantial transformation of the individual components into a new and different article of commerce with a new name, character, and use. As such, the switching Power Supply for a Personal Computer, Model No. HP1-J700GD-F12S is considered a product of Vietnam 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