The country of origin of a home monitoring camera kit.

N308696 January 28, 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 a home monitoring camera kit. Dear Ms. Lee: In your letter dated January 3, 2020, you requested a country of origin ruling determination on a home monitoring camera kit. The merchandise under consideration is a home monitoring kit that contains a camera (model numbers CS-9022) and an access point (AC) (model number WAP-N33), which are imported bundled together as product number KX-HN7001W. The subject camera can capture images and convert them into an electronic signal that is transmitted as a video image to a location outside the camera for remote viewing or remote recording. The subject camera does not contain any internal recording capability. The subject AP is a wireless network and has a subsidiary function to record video onto a micro SD card. Camera model CS-9022 has three types of PCBA’s. The mainboard receives image data from the sensor board, transmits the image data by Wi-Fi; the Sensor Board contains an image sensor and sends image data to mainboard; and the PIR board senses if something is close to the camera, and sends a signal to the mainboard. The subject AP (WAP-N33) contains one PCBA that performs on Wi-Fi 2.4G band. When imported as a set packaged for retail sale, the subject home monitoring camera kit meets the definition of “goods put up in sets for retail sale.” As per General Rule of Interpretation (GRI) 3(b), classification is determined by the component, or components taken together, which confer on the set as a whole its essential character. It is the opinion of this office that the cameras impart the essential character of this set. According to the information provided the following production process occur in Taiwan: The creation of each PCBA, which includes the following processes: 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 PCBA’s include PCB panel loader on the 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: The production processes for the camera entails unpacking the PCBA boards, sensor board lens assembly, lens focusing test, device pre-assembly, device assembly, F4 (device function testing), package testing, and device packing. The lens assembly processes include sensor IC cleaning and lens assembly. Next, 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 includes applying acetate tape to the back cover assembly; battery and O-ring cover assembly, battery metal frame assembly, and IR cover assembly. Regarding the AP, the production processes are unpacking the PCBA board, device pre-assembly, device assembly, F4 (device function testing), package function testing, and packing. The pre-assembly process includes PCB board heatsink assembly and antenna/front cover pre-assembly. The processing entails front and back cover assembly and labeling. 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). Guidance in a situation where sets packaged for retail sale are involved is provided on the CBP website in “CBP Section 301 Trade Remedies Frequently Asked Questions”. The answer to “How are the Section 301 duties assessed in respect to sets packaged for retail sale, which contain components covered by the Section 301 remedy,” reads, in pertinent part, as follows: When importing goods put up in sets for retail sale (in accordance with General Rule of Interpretation 3) that contain articles subject to the Section 301 remedy, if the product that imparts the essential character to the set (i.e. the HTSUS provision under which the entire set is classified) is covered by the Section 301 remedy, then the entire set will be subject to the additional duties. If include, but the set contains components that are classified in a subheading covered by the 301 lists, the 301 duties will not be assessed on the individual components. 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 cameras would be considered products of Taiwan at the time of importation into the United States. Accordingly, when imported as a set packaged for retail sale, product number KX-HN7001W, would be a product of Taiwan. 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