The country of origin of an optical drive enclosure

N316900 February 1, 2021 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 an optical drive enclosure Dear Mr. Chorostecki: In your letter dated January 12, 2021 you requested a country of origin ruling. The merchandise under consideration is identified as the OWC Mercury Pro 5.25" Optical Drive (drive enclosure), Model OWCMR3UKIT, which is described as an empty enclosure consisting of a metal case, a printed circuit board assembly (PCBA), electrical cables, and connection brackets/hardware. The drive enclosure is intended to be used with optical drives, however you state that they are imported without the optical drives and either a CD or DVD drive assembly will be installed post-importation. Included with the kit are a power supply adapter and a USB cable. In your request, you state that the PCBA, which we view as the controller for optical drive function and communication, is manufactured in Taiwan by surface mounting numerous individual electronic components such as integrated circuits, resistors, capacitors, diodes, connectors, etc. onto a bare printed circuit board to produce controller PCBA of Taiwanese origin. The balance of the drive enclosure components are said to be of Chinese origin, to include the metal enclosure, assembly hardware, cables, and the power supply. The PCBA is exported to China where the drive enclosure is assembled, tested, packaged, and readied for export. In China, the metal enclosure is assembled with screws, the PCBA is inserted and secured to the enclosure base with four fasteners, a power switch and USB/12 VDC input connectors are inserted into the rear panel and the unit is tested and packaged with an external power supply and cables. 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.” 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 PCBA in Taiwan by surface mounting and through-hole insertion of integrated circuits, transistors, resistors, transformers, capacitors, connectors, etc. onto a bare printed circuit board produces a PCBA of Taiwan origin. However, it is also our view that the subsequent assembly operations performed in China, which consists of mounting the PCBA inside a housing and fastening with screws, attaching cable connectors, and packaging, does not result in a substantial transformation of the PCBA into a different article of commerce with a new name, character, and use. Furthermore, it is our opinion that the controller PCBA provides the functionality of the imported drive enclosure. As such, the OWC Mercury Pro 5.25" Optical Drive, Model OWCMR3UKIT, 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