The country of origin and marking of a resistor

N315229 October 28, 2020 MAR-2-85:OT:RR:NC:N2:209 CATEGORY: Marking, Country of Origin Robert D. Stang Husch Blackwell, LLP 750 17th Street, NW Washington, DC 20006 RE: The country of origin and marking of a resistor Dear Mr. Stang: In your letter dated October 14, 2020, you requested a country of origin and marking ruling on behalf of your client, Wako Electronics (USA), Inc. The item concerned is a thermal oven sensor used for oven temperature measurements. The sensor incorporates a platinum sensor chip (variable resistor) mounted within a stainless steel tube (probe) with attached wires. As the platinum sensor chip gains or loses heat energy its electrical resistance changes proportionately as a natural characteristic of the platinum film in the sensor chip. This varying resistance is converted to an electrical current and transmitted to an oven range control. The variable resistor assembly (oven sensor) consists essentially of a platinum thin film resistor chip, lead wires, connectors, insulation sleeves, and stainless steel tube. Within Germany the resistor chip is manufactured using a complex thin film manufacturing process. The finished chip is a complete platinum resistor chip that is fully functional and operational. This resistor chip is able to receive input (i.e., a certain amount of heat energy) and transform that energy into a varying electrical resistance. The finished resistor chip is then shipped to China where it is further manufactured into the finished thermal oven sensor assembly. Within China electrical wires, terminals/connectors, the resistor chip, insulating sleeves and a stainless steel tube/mounting bracket assembly is assembled, completing the manufacturing process for the thermal oven sensor. A complete manufacturing process description and explanation has been provided. 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.” 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 resistor chip manufactured in Germany is the dominant component of this temperature sensor. The resistor chip does not undergo a substantial transformation as a result of the manufacturing process that takes place in China. The resistor chip retains its identity as a variable resistor with a predetermined end use. Therefore, since a substantial transformation does not occur as a result of the Chinese manufacturing/assembly process, the country of origin of the finished thermal oven sensor will be Germany for origin and marking purposes at 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 Steven Pollichino at steven.pollichino@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division