The country of origin and marking of CMOS image sensors from China

N309766 March 5, 2020 MAR-2-85:OT:RR:NC:N2:209 CATEGORY: Marking, Country of Origin David L. Gilblom CEO Maxwell-Hiqe Corporation 4401 N. Camino Arco Tucson, AZ 85718 RE: The country of origin and marking of CMOS image sensors from China Dear Mr. Gilblom: In your letter dated February 12, 2020, you requested a country of origin and marking ruling. The items concerned are referred to as the Imagica ITR and ITL line sensors. Both sensors use the same integrated circuit die, which is configured in three ways to vary the pixel height and are mounted in two different packages to meet varying electronic compatibility requirements. The packaged devices are available with either permanent optical glass windows or temporary windows that can be removed by the end customer for direct optical access to the die surface. The devices are intended for use in various scientific instruments such as spectrometers and in machine vision cameras. The sensors are designed by Imagica Technologies (Imagica) in the city Vancouver in British Columbia, Canada, which owns the intellectual property design. The wafers are made by TSI Semiconductors, Inc. within the United States. The wafers are built on 200 mm silicon using standard TSI 5 Volt CMOS processes on conventional fabrication equipment. Photographs of the manufacturing equipment have been provided. All of the circuitry is incorporated into a single monolithic die. The die consists of/provides: • Clock and control functions • A photodiode line array • Readout circuits for the photodiodes • Buffer amplifiers for the ananlog output signal Each wafer contains slightly over 500 of these die. Finished wafers are shipped by TSI to a facility (JCET) in China for packaging. JCET cuts the wafers into individual die, bonds the die using epoxy to laminated ceramic packages, wire bonds the die to the package lead frame and adds the permanent or temporary window. The finished sensors are then shipped from China to Imagica. Imagica is always the initial importer of these devices from China. Imagica then ships the sensors to Maxwell-Hiqe in the United States. Maxwell-Hiqe provides global distribution services to Imagica under an exclusive contract. All devices sold by Maxwell-Hiqe are imported from Imagica. 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 wafers (which contain the completed integrated circuits) manufactured within the United States do not undergo a substantial transformation as a result of the manufacturing process that takes place in China. They retain their identity as integrated circuits with a predetermined end use. Therefore, since a substantial transformation does occur as a result of the Chinese manufacturing/assembly process, the country of origin of the finished CMOS image sensors will be the United States for origin and marking purposes at time of importation into the United States. Accordingly, the variable resistors will not be required to have any country of origin marking pursuant to 19 U.S.C. 1304 when imported into the United States. Whether an article may be marked with the phrase “Made in the USA” or similar words denoting United States origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S. 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