U.S. Customs and Border Protection · CROSS Database
N310462 March 19, 2020 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin Victor Yeh Protop International Inc. 10F-8, No.237, Sec1, Datong Road Xizhi, New Taipei City 22161 Taiwan Dear Mr. Yeh: In your letter dated March 6, 2020, you requested a country of origin ruling on behalf of your client, Walgreens Company. The item under consideration is described as a white, 6-foot charge and sync cable. The subject cable is comprised of a length of insulated cable affixed at one end with a standard male USB Type-C connector and a lightning style connector at the other. The cables are designed to connect a variety of mobile devices to host units and charging stations. In your request, you state that the subject cables are assembled in Vietnam using components originating from China and Vietnam. The manufacturing process occurs in Vietnam where the raw copper wire is drawn, extruded, twisted, annealed and insulated to create bulk conductor cable. Then the wire conductor is cut to length and the ends are peeled in preparation for the addition of the connectors. Next, Chinese origin connectors are soldered onto each end. The finished cable is then tested, inspected and packaged for retail sale. The “country of origin” is defined in 19 CFR 134.1(b), in pertinent part, 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.” 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). Further, in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade (“CIT”) interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer, the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight, and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted, “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an example, National Hand Tool Corp. v. United States, 16 C.I.T. 308, 310, aff’d 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article. Regarding the origin of the subject charge and sync cables, it is the opinion of this office that the Vietnamese origin conductor cable imparts the essence of the product. While the Chinese origin connectors are important to the structure and function of the cable, they lose their separate identities and become an integral part of the new article as a result of the assembly process. Based on the facts presented with this case, it is the opinion of this office that the country of origin of the subject 6-foot charge and sync cable is Vietnam. Importations of this product may be subject to the provisions of Section 133 of the Customs Regulations if they copy or simulate a registered trademark, trade name or copyright recorded with U.S. Customs and Border Protection. If you are an authorized importer of the product we recommend notifying your local Customs office prior to importation. 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 Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division
