The country of origin of the Scale Master Classic and Construction Master 5

N308561 January 16, 2020 OT:RR:NC:N1:105 CATEGORY: Country of Origin Christi Roos Mallory Alexander International Logistics 4294 Swinnea Road Memphis, TN 38118 RE: The country of origin of the Scale Master Classic and Construction Master 5 Dear Ms. Roos: In your letter dated December 20, 2019, on behalf of your client, Calculated Industries, you requested a country of origin ruling. The first item under consideration is identified as the Scale Master Classic model 6020. The item is a hand-held device designed for building, engineering and construction professionals to obtain linear area and volume take-offs from blueprints, drawings and maps. There are seventy-two built-in scales including decimal inches, feet-inches, yards, miles, nautical miles and millimeters. The Scale Master has built-in counters, which allows the user to manually count other items such as studs, piers, outlets and more. The device runs off batteries and is 6.7 inches x 1.6 inches x 0.6 inches. The second item under consideration is identified as the Construction Master 5 model 4050. The item is a hand-held device designed for contractors, framers, builders, architects, engineers and roofers as an advanced calculator for plans, layouts and on site construction. The device allows the user to perform conversions between feet and inches, fractions and decimals, and more. The battery-operated Construction Master 5 is 5.7 inches x 3 inches x .65 inches. Four separate processing scenarios were presented, which are the same for both items. In scenario one, the printed circuit board assembly (“PCBA”) is created in China using surface mount technology (“SMT”), hand assembly of various components and assembling the microprocessor unit, which is imbedded with the information required for the finished article to function as a calculating device, to the printed circuit board (“PCB”). Additionally in China, the Chinese manufactured plastic molding and silkscreen are added to the PCBA and the printed materials are constructed. In the Philippines, the liquid crystal display (“LCD”) is attached and final testing occurs. Once complete, the final packaging and quality checks are completed in the Philippines. In scenario two, all of the processing is the same as scenario one except the assembling of the microprocessor unit to the PCB is completed in the Philippines rather than China. In scenario three, all of the processing is the same as scenario two other than the printed materials are produced in the Philippines. Finally, in scenario four, all of the processing is the same as in scenario three other than the plastic molding and silk screening is now completed in the Philippines. This scenario maintains the surface mount technology and hand assembly in China. In an email with this office, you stated that the components assembled during the SMT process represent well over ninety percent of the componentry. Additionally, the remaining components (e.g., battery, contacts, beeper wires) except the main IC chip are attached during the hand assembly processing using a traditional soldering iron. With regard to your request for the appropriate country of origin of the Scale Master Classic and Construction Master 5, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: “‘Country of origin’ means 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.”As stated in HQ 735009 dated July 30, 1993, “The country of origin is the country where the article last underwent a ‘substantial transformation,’ that is, processing which results in a change in the article’s name, character, and use.” In addition, the court has held that “A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, and use that differs from the original material subjected to the processing.” 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. In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character and use has been produced. No one factor is decisive. Assembly operations that are minimal will generally not result in a substantial transformation. In all four scenarios, the majority of the parts utilized in the creation of the PCB are of Chinese origin. The assembly of the PCB, which contains the necessary components for the Scale Master Classic and Construction Master 5 to operate, is performed in China for scenario one and predominately performed in China for scenarios two through four and represent over ninety percent of the componentry. Further, the remaining components, other than the main IC chip, are attached during the hand assembly stage in China. In our view, the processing completed in the Philippines does not substantially transform the Chinese components into a new and different product having a new function and purpose. In view of these facts, the country of origin is China. 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 Jason Christie at Jason.M.Christie@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division