The country of origin of the Dewalt 20V Atomic 3x360 Laser Line Level.

N321705 October 12, 2021 OT:RR:NC:N1:105 CATEGORY: Country of Origin John A. Bessich Follick & Bessich, Attorneys at Law 33 Walt Whitman Road, Suite 310 Huntington Station, NY 11746 RE: The country of origin of the Dewalt 20V Atomic 3x360 Laser Line Level. Dear Mr. Bessich: In your letter dated August 2, 2021, resubmitted to this office on September 21, 2021, on behalf of your client, Stanley Black & Decker, Inc., you requested a country of origin ruling determination on the Dewalt 20V Atomic 3x360 Laser Line Level. The merchandise under consideration is the DeWalt 20V Atomic 3x360 Laser Line Level, which is a battery-operated electronic device used to project multiple 360-degree laser lines that are level or plumb to gravity. The Atomic Laser Line Level contains electronic controls and laser diodes that produce laser lines along three orthogonal planes. The electronic controls monitor the user inputs, monitor the data from the accelerometer chip, maintain the thermal stability of the battery and electronics, control the output power of the laser, and create three pulse trains that an external laser receiver uses for long range detection of the laser light. The laser diodes and optics are mounted in a free-hanging pendulum via two sets of ball bearings, which allows the laser lines to remain level or plumb with respect to gravity. The Atomic Laser Line Level will be made using components which are sourced and assembled in Vietnam, Taiwan, Thailand, Cambodia, Korea, and China. Two of the principal subassemblies of the Atomic Laser Line Level are supplied by manufacturers located in Vietnam; the sensor printed circuit board assembly (Sensor PCBA) and the control printed circuit board assembly (Control PCBA). In addition, the three green laser diodes are made in Taiwan. The sensor PCBA is created by robotically placing the electronic components into the multi-layer circuit board. The electronic components include the accelerometer chip which provides the angular position data to the microcontroller (MCU) which is mounted on the control PCBA. The control PCBA is also produced in Vietnam by using surface mount technology to robotically place electronic components (integrated circuits, resistors, etc.) on a multi-layered printed circuit board (PCB). Additional items placed on the board include user interface switches, the power switch and battery status LEDs (light emitting diodes). Following the assembly of the control PCBA, the MCU is programmed by loading the operational firmware. The firmware monitors data from the accelerometer chip, the user interface switches, the temperature limits, and the battery pack voltage and current. In addition, the firmware controls the on/off power function of each laser diode, the laser pulsing necessary for long-range detection of laser light with a laser receiver. Both the sensor PCBA and control PCBA are tested in Vietnam prior to exportation to China. Following production of the sensor PCBA and control PCBA in Vietnam, they are exported to China, along with the Taiwanese laser diodes and bearings sourced from Thailand or Cambodia. In China, the foreign items are combined with Chinese components to complete the assembly. First, the laser diode and collimating lens are pressed together and glued. Then laborers assemble the cone mirror and glass barrel which turns the cone mirror laser spot into a projected laser line before measuring the optical quality. The next assembly function includes soldering wires from the laser diode to the transfer board, which is a simple PCBA that consolidates some of the electrical connections to the laser diodes. Next is the alignment of the laser subassemblies which are then glued to the pendulum block. This is followed by assembly of the ball bearings to the pendulum block. The lower housing is now assembled along with combining the mount subassembly together with the chassis subassembly. The mechanical balancing of the pendulum is then set via screws to ensure the laser line is plumb. The control PCBA and sensor PCBA are connected via wires. Assembly of the glass windows, rubber shock isolators and metal canopy covers are then followed by assembly of the lower housing with the upper housing. Final checks are completed to ensure the accuracy of the unit and final additional items are completed including adding the battery, etching the serial number and final packaging. Regarding your request for the appropriate country of origin of the DeWalt 20V Atomic 3x360 Laser Line Level, 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, and use.” In addition, the court 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. 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. Assembly operations that are minimal will generally not result in a substantial transformation. In this instance, the Vietnamese sensor and control PCBAs enable the Atomic Laser Line Level to operate. The control PCBA, through firmware programmed into the MCU, is the principal subassembly which gives the DeWalt 20V Atomic 3x360 Laser Line Level its essence. The additional Chinese components, Taiwanese laser diode, and Taiwanese/ Cambodian ball bearings complete the assembly process but do not contain the essence of the Atomic Laser Line Level. Therefore, it is this office’s opinion that the Vietnamese sensor and control PCBA’s are not substantially transformed by the assembly process being performed in China. The essence of the DeWalt 20V Atomic 3x360 Laser Line Level is generated prior to leaving Vietnam. The assembly process in China does not create a new and different product having a new function and purpose. In view of these facts, the country of origin for the DeWalt 20V Atomic 3x360 Laser Line Level is Vietnam. 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