The country of origin of a data storage enclosure

N315913 December 3, 2020 OT:RR:NC:N2:220 CATEGORY: Origin Nick Chorostecki Other World Computing, Inc. 8 Galaxy Way Woodstock, IL 60098 RE: The country of origin of a data storage enclosure Dear Mr. Chorostecki: In your letter dated November 16, 2020 you requested a country of origin ruling. The merchandise under consideration is identified as the ThunderBay Flex 8, which you describe as an empty data storage drive enclosure that is used in data backup and configurable productivity platforms, such as digital imaging, VFX, video production, and video editing. The ThunderBay Flex 8 has eight drive bays, where users can insert hard disk or solid state drives, and multiple connection ports, such as Thunderbolt, USB-A, USB-C, and display ports. You state that the ThunderBay Flex 8 is imported without any storage drives installed. The ThunderBay Flex 8 consists of the drive enclosure, six printed circuit board assemblies (PCBAs), a power supply, a cooling fan, electrical cables, and connection brackets/hardware. Each of the PCBAs that make up the ThunderBay Flex 8 perform a specific function within the unit, such as controlling hard drive functions, circuit board interconnection, and communication (network, USB, and Thunderbolt). Together, the PCBAs contribute to the overall functionality of the data storage enclosure by controlling the inserted drives and providing communication to connected personal computers directly or via a network. In your request, you state that each of the six PCBAs are manufactured in Taiwan by surface mounting numerous individual electronic components such as integrated circuits, resistors, capacitors, diodes, MOSFETS, etc. onto bare printed circuit boards to produce functional PCBAs of Taiwanese origin. The PCBAs are exported to China where the ThunderBay Flex 8 is assembled, as described hereafter. In China, the rear panel and brackets are assembled with fasteners, the cooling fan assembly is mounted, and the power supply is mounted to form the back panel subassembly. To the front panel assembly, decals are applied and a key-lock assembly is inserted. Next, the PCBAs, which are identified as the Main Board, the SAS Card, the SUB Board, the Dock Board, the LED Board, and the PCIe Board, are mounted/inserted inside the enclosure. The front and rear panels are then attached to the enclosure, metal drive trays are attached, and the base is fastened to the bottom. Throughout the assembly process, various cables are inserted/attached and brackets are mounted within the enclosure. 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.” The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). Based upon the facts presented and the pertinent authorities, it is the opinion of this office that the production of the six PCBAs in Taiwan by surface mounting and through-hole insertion of integrated circuits, transistors, resistors, transformers, capacitors, connectors, etc. onto bare printed circuit boards produces PCBAs of Taiwan origin. However, it is also our view that the subsequent assembly operations performed in China, which consists of inserting the PCBAs into a housing and fastening with screws, mounting a fan and power supply, and attaching metal brackets, is not complex and does not result in a substantial transformation of the PCBAs into different articles of commerce with a new name, character, and use. Furthermore, the Main Board and SAS Card PCBAs provide the functionality and represent the essence of the ThunderBay Flex 8. As such, the ThunderBay Flex 8 is considered a product of Taiwan for 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 Karl Moosbrugger at karl.moosbrugger@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division