The country of origin of an Around View Monitoring (AVM) camera.

N316566 January 12, 2021 OT:RR:NC:N2:208 CATEGORY: Country of Origin Youngmin Kwon LG Innotek Co LTD 30, Magokjungang 10-ro Gangseo-gu, Seoul 07796 Republic of Korea RE: The country of origin of an Around View Monitoring (AVM) camera. Dear Mr. Kwon: In your letter dated December 21, 2020, you requested a country of origin ruling determination. The merchandise under consideration is an Around View Monitoring (AVM) camera, part number ACV01S001X. The AVM camera is designed to be mounted in the front, rear, and side of the vehicle to provide 360 degrees of out-of-vehicle viewing from the driver’s seat. The subject camera captures video images outside the vehicle and transmits them to the vehicle’s Electronic Control Unit (ECU).   The AVM Camera consists of a Lens, an Epoxy, and a Printed Circuit Board Assembly (PCBA) with image sensor, a Shield Can, and a Cover. You state that the PCBA, which contains the image sensor, is essential to capture and process images. Based on the information provided, the manufacturing process of the AVM PCBA occurs in Korea. In Korea, the bare Printed Circuit Board (PCB) of Chinese origin is first inspected through 3D Solder Paste Inspection. Then, the PCB is populated with forty-five discrete electronic components of various origin, by using surface mount technology (SMT). Next, the PCBA subassembly undergoes a reflow process, which permanently secures the electrical components onto the PCB. The PCBA subassembly then passes an automated optical inspection (AOI) before going through X-Ray Inspection, In-Circuit Test and Current Test. Lastly, the PCBA subassembly goes through PCB routing and a final packing process that prepares it for shipment to China for final assembly. In China, the final assembly occurs. First, the sensor is cleaned for dust and scratches, then aligned and bonded with a Chinese origin lens. Afterwards, the assembly is placed in a plastic housing top and a plastic housing bottom by means of ultrasonic welding. Next, the camera goes through a series of tests such as leak test, open circuit test, current test, etc. Lastly, the finished camera is packed for exportation to the United States, which includes a plastic tray with cover, box, packing label, and tape.   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 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 before 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 scenario presented, it is the opinion of this office that the PCBA provides to the main functionality of the finished Around View Monitoring camera (i.e., taking the images, processing it into a digital signal, and transmitting images). The assembly process of the PCBA in Korea by soldering the individual components onto the bare board through SMT processing results in a substantial transformation of the components to produce the PCBA of Korean origin. The assembly process that takes place in China is not complex and does not result in a substantial transformation of the PCBA. Accordingly, the Around View Monitoring camera would be considered a product of Korea for origin 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