The country of origin of an outdoor surveillance camera.

N309927 March 4, 2020 OT:RR:NC:N2:208 CATEGORY: Country of Origin Mr. Garrett Li LITE-ON Technology Corp. No. 392, Ruiguang Rd., Neihu Dist., Taipei City, N/A 114 Taiwan RE: The country of origin of an outdoor surveillance camera. Dear Mr. Garrett Li: In your letter dated February 19, 2020, you requested a country of origin ruling determination. The merchandise under consideration is the LITE-ON outdoor bullet cameras, model number SBA20. The subject cameras are used for home video surveillance. These weather resistance cameras are network-connected via Wi-Fi and powered via the Stereo Jack connector. Moreover, the subject IP/network cameras can transmit video images to cloud storage. Additionally, these cameras can capture and record video and still images onto an internal SD card. The subject outdoor cameras contain four printed circuit boards that are manufactured in Taiwan by means of Surface Mount Technology (SMT), which includes mounting, soldering, and placing various components directly onto the surface of a printed circuit board (PCB). Additionally, the software is built and programmed onto all four boards in Taiwan. The four printed circuit assemblies (PCBAs) are the Mainboard, IR board, Sensor board, and Wi-Fi board. The Mainboard is the main system IC that controls signal processing, retains memory for video surveillance application, and handles the power input to the ICs. The IR Board provides for the device’s night mode and LED illumination. The Sensor Board captures images and controls the IR cut filter switch. The Wi-Fi Board manages the device’s RF function and controls data reception as well as transmission. In addition, the Taiwanese factory affixes the lens and an image sensor onto the Sensor Board. The Taiwanese factory also attaches connectors between the PCBAs, focuses the lens at a proper position, performs function tests on the assembled/programmed camera module, and then packs and sends them to China for final assembly. In China, the camera module is placed into the outer housing and connected to the external DC cable. The antenna is connected and pasted onto the housing. The front cover is glued and sealed to the camera. The product information is added onto the housing by a laser-carving machine. The camera and its accessories are packaged into gift boxes for retail sale. 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 PCBAs contribute to the main functionality of the finished LITE-ON SBA20 cameras because the role of these PCBAs, relative to the functioning of the product (i.e., taking the images, processing it into a digital signal, and transmitting images). The assembly of the PCBAs in Taiwan by soldering the individual components onto the bare board results in a substantial transformation of the components to produce the PCBAs of Taiwanese origin. The assembly processes that take place in China do not result in a substantial transformation of the PCBAs. Accordingly, the LITE-ON SBA20 cameras would be considered a product of Taiwan for the 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 Lisa Cariello at lisa.a.cariello@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division