The classification and country of origin of Gateway and Node Kits.

N318279 April 7, 2021 CLA-2-90:OT:RR:NC:N1:105 CATEGORY: Classification; Country of Origin TARIFF NO.: 9031.80.8085 Jay Allan Director, Trade Compliance Consolidated Metco 5701 SE Columbia Way Vancouver, Washington 98661 RE: The classification and country of origin of Gateway and Node Kits. Dear Mr. Allan: In your letter dated March 12, 2021, you requested a classification and country of origin ruling determination on two gateway and node kits. The merchandise under consideration involves two kits containing similar articles designed to provide measurements on class 7 and 8 vehicles. The first kit has a Gateway router (LMU2630MB-SHL12-G1000), Aluminum curved mounting plate, SmartHub Custom Sensor Nodes, Two-part Epoxy Glue, and Steel Screws. The second kit has the Gateway router (LMU2630MB-SHL12-G1000), Aluminum curved mounting plate, SmartHub Custom Sensor Nodes, Tire Pressure Sensor Node, Two-part Epoxy Glue, and Steel Screws. The Gateway router (Model LMU2630MB-SHL12-G1000) is located in the tractor cab or on the trailer and contains one per kit. The device is powered via connection to the electrical system of the tractor cab or trailer. The gateway router is an information transmission network used as a stopping point for data on its way to or from other devices, e.g., nodes. The gateway interprets a unique code sent to it by the nodes installed onto wheel hubs and/or tire stems located on the truck or trailer. Once the nodes are registered in the list of approved nodes in the gateway whitelist, the gateway will receive the information that the nodes have recorded for transmission and will broadcast this information securely to a server that will extract the node data and create recorded information to the cloud. The Gateway is produced in Taiwan. The SmartHub Custom Sensor Nodes are placed in the kit in quantities of four or more, depending on the quantity of wheel hubs present on the tractor cab or trailer. SmartHub Custom Sensor Nodes will be attached onto the wheel hub of an axle attached to a trailer or tractor cab and will measure temperature and vibration. The node also provides information on the sensor battery level and sensor firmware version. The information is transmitted and collected via the Bluetooth communication protocol to the gateway on the same vehicle. The Smarthub Custom Sensor Nodes are produced in the Philippines. The Tire Pressure Sensor Nodes are placed in the kit in quantities of eight or more, depending on the quantity of tires present on the tractor cab or trailer. The Tire Pressure Sensor Nodes will be screwed onto the tire valve stem of a wheel attached to a trailer or tractor cab and will measure the temperature of the tire and tire pressure. The information is transmitted and collected via the Bluetooth communication protocol to the gateway. Tire Pressure Sensor Nodes are produced in China. The aluminum curved plates are used to keep the SmartHub Nodes optimally oriented to register sensor data from the wheel end. They are shipped in quantities of four or more depending on the quantity of SmartHub nodes in the kit. They measure 4 inches by 6 inches and are .25 inches thick. The plates are curved so they will fit onto the curved section of a vehicle wheel and are attached to the hub with epoxy glue. The SmartHub nodes are attached to the plates via screws. The aluminum curved plates are produced in China. The two-part epoxy glue will be activated once combined and will be applied to one side of the aluminum plate. The plate is then attached to the wheel. The two-part epoxy glue is produced in China. The steel screws are used to secure the node to the aluminum plate. The screws are produced in China. General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS. GRI 3(a) states in part that when two or more headings each refer to a part of the item in a set put up for retail sale, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the goods. Both sets listed above, consist of at least two different articles that are, prima facie, classifiable in different headings. They consist of articles put up together to carry out a specific activity (i.e., providing measurements). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the items in question are within the term "goods put up in sets for retail sale." GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component that gives them their essential character. Inasmuch as no essential character can be determined for the sets listed above, GRI 3(b) does not apply. GRI 3(c) states that, if neither GRI 3(a) nor GRI 3(b) applies, merchandise shall be classified in the heading that occurs last in numerical order. In this case, both sets contain the SmartHub Custom Sensor Nodes which falls last within heading 9031, HTSUS. The applicable subheading for the first kit containing the Gateway, Aluminum curved mounting plate, SmartHub Custom Sensor Nodes, Two-part Epoxy Glue, and Steel Screws and the second kit containing the Gateway, Aluminum curved mounting plate, SmartHub Custom Sensor Nodes, Tire Pressure Sensor Nodes, Two-part Epoxy Glue, and Steel Screws will be 9031.80.8085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Other instruments, appliances and machines: Other: Other” The general rate of duty will be free. In your request you also are seeking the appropriate country of origin of the kits. 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. 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. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986). In your submission, you state that the Gateway router is manufactured in Taiwan, the SmartHub Custom Sensor Nodes are manufactured in the Philippines, and the Tire Pressure Sensor Node, Aluminum Curved Mounting Plate, Two-part Epoxy Glue, and Steel Screws are manufactured in China. In China, the items are all packaged together for retail sale into a compartmentalized retail box. In our view, the assembly operations performed in China, which consists of inserting the Gateway router, Aluminum curved mounting plate, SmartHub Custom Sensor Nodes, Tire Pressure Sensor Node (for the second kit only), Two-part Epoxy Glue, and Steel Screws into a compartmentalized retail box, is not complex. Based on the facts presented, it is the opinion of this office that the enclosed items are not transformed in China into new and different articles of commerce with a name, character, and use distinct from the articles exported from Taiwan and the Philippines. Therefore, each item in the kit maintains its country of origin. The Gateway will be country of origin Taiwan, the SmartHub Custom Sensor Nodes will be country of origin Philippines, and the Tire Pressure Sensor Node (for the second kit only), Aluminum Curved Mounting Plate, the Two-part Epoxy Glue and the Steel Screws will be country of origin China. Regarding the marking of the kits described above, Treasury Decision (T.D.) 91-7, published in Volume 25, Customs Bulletin and Decisions, at 6 (January 16, 1991), addressed, among other things, the application of country of origin marking requirements to sets. It was stated therein, at 16:. . . in most cases, the mere inclusion of an item in a collection will not substantially transform it into an article with a new name, character or use and, therefore, each item must be separately marked with its own country of origin. (Where the marking of the container will reasonably indicate the country of origin to the ultimate purchaser, the container may be marked instead of the individual articles. See 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d)). This result is consistent with the purpose of the marking statute since the ultimate purchaser’s decision as to whether to buy the set might be influenced by the country of origin of any of the items in the set, whether or not an item gives the set its essential character.Following T.D. 91-7, the mere packaging of the items in the Kit in China does not substantially transform those individual components and so the origin of each peripheral in the subject kit must be identified. Therefore, the items of foreign origin, i.e., the Gateway router, Aluminum curved mounting plate, SmartHub Custom Sensor Nodes, Tire Pressure Sensor Node (for the second kit only), Two-part Epoxy Glue, and Steel Screws, either must be individually marked with their origin, provided such marking is visible through the retail packaging, or the packaging must identify the origin of each of these items. 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