The country of origin of a Simple Scan Forehead Thermometer

N317400 March 1, 2021 OT:RR:NC:N1:105 CATEGORY: Country of Origin Christopher Constantine Director of Compliance Unique Logistics International (BOS) Inc. 35 Village Road Middleton, MA 01949 RE: The country of origin of a Simple Scan Forehead Thermometer Dear Mr. Constantine: In your letter dated February 5, 2021, you requested a ruling on the country of origin for the Simple Scan Forehead Thermometer. The merchandise under consideration is identified as the Simple Scan Forehead Thermometer. The device is reusable, battery-powered, and has a dual temperature scale (Fahrenheit and Celsius). The thermometer has an infrared sensor that is primarily used for taking the user’s temperature, however, you state it can also be used for taking the temperature in baby food and bath water. In operation, the user will point the infrared sensor at their forehead and press the measure button to engage the sensor. The reading will be displayed on the LCD screen and will notify the user via a fever alert icon indicating if there is an elevated temperature. It also features a memory function to store the last ten measurements. The thermometer consists of a sensor, battery, plastic housing, LCD display, printed circuit board assembly and an integrated circuit assembly. In your request, you provided a description of the manufacturing process for the Simple Scan Forehead Thermometer. In China, the printed circuit board assembly is created and combined with the Korean sensor. Additional assembly in China includes the manufacture and construction of the plastic housing and calibration of the thermistor. Finally, the thermometer is inspected and packaged for further assembly in Taiwan. In Taiwan, the integrated circuits are manufactured and installed, the battery is installed, and final screws are installed. The Taiwanese firmware, software and MCU programing are also created and installed in Taiwan prior to the final inspection, packaging and testing of the product. With regard to your request for the appropriate country of origin of the digital thermometers, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means 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; As stated in HQ 735009 (dated July 30, 1993), “The country of origin is the country where the article last underwent a “substantial transformation”, that is, processing which results in a change in the article's name, character, or use”. In addition, the court, in United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (C.A.D. 98) (1940) and National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993), has held that “A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, and use that differs from the original material subjected to the processing.” 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, see Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character and use has been produced. No one factor is decisive, see Belcrest Linens v. United States, 573 F. Supp. 1149 (CIT 1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). Assembly operations that are minimal will generally not result in a substantial transformation, see C.S.D. 80-111, C.S.D. 85-25, C.S.D. 89-110, C.S.D. 89-118, C.S.D. 90-51, and C.S.D. 90-97. In this instance, it is this office’s opinion that the Chinese electronic components and PCBA, the assembly of the Korean sensor in China, and the thermistor calibration performed in China, provide the essence of the Simple Scan Forehead Thermometer. The work performed in China, including all the Chinese components and integration of the Korean sensor, makes up over sixty percent of the overall cost of the thermometer. The Taiwanese components (other than the integrated circuits which only account for less than ten percent of the cost) and simple assembly operations performed in Taiwan, are not complex or meaningful. Although the firmware is created and installed in Taiwan, the essence of the thermometer is created prior to leaving China. In view of these facts, the country of origin is China. 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 Jason Christie at Jason.M.Christie@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division