The country of origin of an outdoor home monitoring camera.

N308692 January 24, 2020 OT:RR:NC:N:2:208 CATEGORY: Country of Origin Ms. Yu-Shan Lee Alpha Networks Inc. 8 Li-shing 7th Rd Science-based Industrial Park Hsinchu, 30078 Taiwan RE: The country of origin of an outdoor home monitoring camera. Dear Ms. Lee: In your letter dated January 3, 2020, you requested a country of origin ruling determination on an outdoor security camera. The merchandise under consideration is an outdoor home monitoring camera, model number CS-9032 (KX-HNC710W). The subject camera captures video and transmits it to a location outside the camera for remote viewing or recording. This camera cannot permanently record images internally. Camera model CS-9032 has five PCBA’s. The System Mainboard provides Wi-Fi, audio, video, power, control, and processing functions. The PIR and IR-LED board is used for human detection. The Image Sensor Board captures images and audio, detects light, etc. The Charge Board provides the battery charge control and system power on/off controls, and the Power Board inputs the DC power. According to the information provided, the following manufacturing processes were performed in Taiwan: Integrated Circuit (IC) copy and programming including firmware download, surface mount technology (SMT), routing (PCB incision, the dual-in-line package (DIP), F1 (PCBA board function test, and PCBA packaging. The SMT(Surface Mount Technology) and Routing (PCB cutting ) production process of the different PCBAs include PCB panel loader on a rail, PCB panel soldering paste printing, PCB components mounting, reflow, and PCB panel routing. The DIP production process includes fixing PCB panel onto the fixture, putting DIP components on PCB surface, reflow, attaching pins through PCB holes, and placing components onto the PCB boards. The following takes place in China: unpacking PCBA boards, sensor board lens assembly, lens focusing test, device pre-assembly, device assembly, F4 (device function test), package test, and device packing. The lens assembly processes include sensor IC cleaning and lens assembly. The pre-assembly process includes preassembly of the following: mainboard, magnet/back cover, speaker, IO plate, IO cover, U/S/P board, sensor board, LED board, etc. The assembly process is comprised of applying acetate tape to the back cover assembly, battery and O-ring cover assembly, battery metal frame assembly, and IR cover assembly. 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 manufacture 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 Mainboard and Sensor Board PCBAs that are created in Taiwan contribute to the main functionality of the finished camera. The assembly processes that take place in China do not result in a substantial transformation of the PCBAs. Therefore, provided that all the SMT processes that create the PCBA Mainboard and Sensor Board were done in Taiwan, the camera would be considered a product of Taiwan 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