The country of origin of a Sound Box with wireless charger.

N321772 October 18, 2021 OT:RR:NC:N2:208 CATEGORY: Country of Origin Linda McCroskey Leedsworld 400 Hunt Valley Drive New Kensington, PA 15068 RE: The country of origin of a Sound Box with wireless charger. Dear Ms. McCroskey: In your letter dated September 27, 2021, you requested a country of origin ruling determination. The merchandise under consideration is a Sound Box with a wireless charger (Sound Box), Model Number 7143-44. The subject device functions as a white noise machine with 26 pre-programmed melodies while wirelessly charging an electronic device such as an electromagnetic inductive type (Qi-enabled) smartphone. The Sound Box can reproduce sound from an internal semiconductor storage chipset. You also state that the Sound Box does not have the capability to connect to Bluetooth or to any other electronic devices to play external source music. It is the opinion of this office, that the sound reproducing function performs the principal function of this composite machine.   Based on the information provided, the subject Sound Box consists of a speaker, a coil, LEDs, PCBAs, a silicone mat, and a plastic housing. All of the manufacturing and assembly processes occur in Vietnam. The manufacturing process begins with the Printed Circuit Board Assemblies (PCBAs) that are assembled by means of Surface Mount Technology (SMT). During the SMT process, the individual components such as Taiwanese origin chipset and Chinese origin resistors, capacitors, integrated circuits, connectors, etc., are populated onto a bare board via SMT machines. Then the additional components are hand soldered onto the PCBAs. Next, the PCBAs are welded to the speaker and the connection wire, then joined with the coil and connectors. Once the PCBAs are inspected and tested, the final assembly takes place which includes cleaning, quality inspection, and packaging for importation into the United States 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 to render such other country the 'country of origin' within the meaning of this part.   When considering a product that may be subject to antidumping, countervailing, or other safeguard measures, the substantial transformation analysis is applied to determine the country of origin. See 19 C.F.R. § 102.0; HQ 563205, dated June 28, 2006; see also Belcrest Linens v. United States, 741 F.2d 1368, 1370-71 (Fed. Cir. 1984) (finding that “the term ‘product of’ at the least includes manufactured articles of such country or area” and that substantial transformation “is essentially the test used…in determining whether an article is a manufacture of a given country”).   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 before 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).   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. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).   Based on the scenario presented, it is the opinion of this office that the PCBA provides the main functionality of the subject Sound Box, Model Number 7143-44 (i.e., sound reproducing function). The individual Chinese components of the PCBAs are substantially transformed in Vietnam when they are installed onto the bare printed circuit board by surface mount technology to produce the PCBA of Vietnamese origin. Accordingly, this Sound Box with wireless charger, Model Number 7143-44, is considered a product of Vietnam for origin 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 Lisa Cariello at lisa.a.cariello@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division