The country of origin of RFID antennae

N320261 July 19, 2021 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin Catherine Spencer Freight Expediters 6920 Engle Road, Suite II Middleburg Heights, OH 44130 RE: The country of origin of RFID antennae Dear Ms. Spencer: In your letter dated June 29, 2021, you requested a country of origin ruling on behalf of your client, Newave Sensor Solutions, LLC. There are four items at issue with this request that are identified as the NSS Wave N3, NSS Wave N3E, NSS Wave 7, and the NSS Wave 7E. These items are described as Ultra High Frequency (UHF) Radio Frequency Identification (RFID) antennae, which you state, are constructed and function identically with the only difference being the size of each unit. The antennae are constructed of a stamped, thin-film radiating element with an attached cable, all enclosed within a rugged plastic housing. The subject devices are meant to be connected to a controller unit that generates a UHF frequency that is radiated outward from the antenna. The signal detects the presence of RFID tags in the area and sends this information to the controller. You state that these devices are used in a multitude of industries, including but not limited to, warehouses, transportation, and retail establishments. In your request you state that the manufacturing process described as follows is completed in Taiwan. The radiating element and attached cable are manufactured in China and sent to Taiwan. In Taiwan, the radiating element is fully encased in protective foam and then enclosed within the plastic housing. The housing is sealed with silicone to ensure waterproof protection and the cable is secured to the outside. The finished unit is then packaged for export to the United States. The “country of origin” is defined in 19 CFR 134.1(b), in pertinent part, 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.” For tariff purposes, 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 prior to 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). Further, in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade (“CIT”) interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer, the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight, and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted, “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an example, National Hand Tool Corp. v. United States, 16 C.I.T. 308, 310, aff’d 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article. Regarding the country of origin of the subject antennae, it is the opinion of this office that the radiating element with attached cable imparts the essential functional component of the finished device. The operations performed in Taiwan do not substantially transform these items into new and different articles of commerce with a name, character, and use distinct from the individual components. Therefore, based upon the facts presented, the country of origin of the NSS Wave N3, NSS Wave N3E, NSS Wave 7, and the NSS Wave 7E UHF RFID antennae, 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 Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division