The country of origin and marking of a home automation device

N321978 October 27, 2021 MAR-2-85:OT:RR:NC:N2:209 CATEGORY: Marking, Country of Origin Wesley Demory Thomsen and Burke LLP 2 Hamill Road Baltimore, MD 21210 RE: The country of origin and marking of a home automation device Dear Mr. Demory: In your letter dated October 1, 2021, you requested a country of origin ruling on behalf of your client, Brilliant Home Technology, Inc. The item concerned is referred to as the Brilliant Smart Home Control. This item provides smart home control and automation via wireless networks. It is used to control/automate smart lighting, music players, smart locks, and other similar devices. It incorporates an LCD touchscreen, several sensors (including passive infrared detection sensors, temperature sensors, and an ambient light sensor), a camera and a microphone. It installs on a wall in place of an existing light switch. It is hardwired to the existing electrical circuit in a home. In addition to controlling the lighting in a room, it uses Wi-Fi and Bluetooth to wirelessly communicate various types of data to/from other devices in the home (e.g., speakers and thermostats) as well as services over the Internet. The device also includes a video intercom to enable two-way video/voice communications with other Brilliant Control devices and mobile app users. The product consists of two primary subassemblies: Faceplate Subassembly: The faceplate provides the wireless connectivity, data processing capabilities, camera, microphones, sensors, flash memory, and user interface for the smart home device. The faceplate serves as the “brain” of the device and is what provides its smart home functions. Data processing is performed by a CPU running an operating system. Wireless connectivity is supplied by a Wi-Fi/Bluetooth radio. Other incorporated sensors include passive infrared (PIR) for motion detection and to enable auto-on and auto-off functionality, microphones for voice control, ambient light sensor, camera for video intercom, speaker for intercom, and temperature sensor. The faceplate incorporates a 5” touch screen display for a user interface. It also includes a capacitive touch sensor to serve as an additional user interface. The faceplate has an interface on the back side to connect to the gang box unit to receive power and control directly connected lighting. It is through the faceplate subassembly that all smart home functions are provided, including control of third-party devices, control of remote light switches, presentation of video streams from video doorbells, security cameras, and intercoms, etc. Gang box Subassembly: The gang box unit serves two main functions: lighting control for hardwired lights in a home and AC/DC power conversion to supply power to the faceplate. The gang box unit is installed in place of a light switch in a home and connects to the home’s existing AC electrical circuit. For lighting control, there is a pair of MOSFETs connecting Common to Throw1 and a second pair of MOSFETs connecting Common to Throw2. Through a microcontroller in the gang box unit, the gates of the MOSFETs are controlled to turn the load on or off and do either leading- or trailing-edge dimming. A zero-cross circuit allows the microcontroller to synchronize the dimming control to the AC waveform. There are two manufacturing scenarios under consideration. The manufacturing process under scenario 1 is as follows: Within India the faceplate printed circuit board assembly (PCBA) is produced. The faceplate contains three main PCBAs produced by permanently mounting approximately 509 components to bare printed circuit boards using surface mount technology (SMT). Components include the CPU, wireless connectivity radio chip, sensors, memory, and capacitive touch sensor, among others. The individual components of the faceplate PCBA are of mixed origin. Within India the faceplate is flashed with its firmware. The faceplate firmware, which was developed in the United States, is loaded on the non-volatile eMMC flash memory incorporated on the faceplate PCBA. The firmware provides for control of both the faceplate and gang box subassemblies, as well as the user interface presented on the screen, and the implementation of the functions enumerated above, integrations with external third-party devices, and communications with Brilliant’s servers. Within China the gang box PCBA is produced. The gang box contains two PCBAs produced by permanently mounting approximately 325 components to bare printed circuit boards using surface mount technology. Components include a microcontroller, MOSFETs, transformer, opt isolators, fuses, and voltage regulator, among others. The individual components of the gang box PCBA are of mixed origin. Within China the gang box PCBA is flashed and tested. The gang box PCBA’s microcontroller is flashed with US-developed firmware using an in-circuit tester (ICT) fixture. The gang box firmware provides for low-level control over the analog circuitry in the gang box subassembly, and for communications with the faceplate subassembly and performance of commands transmitted by the faceplate subassembly. The gang box PCBAs are also tested using a functional verification test (FVT) fixture. Within China the faceplate is assembled. The plastic chassis is populated with camera lens, PIR lens, lens cover, gaskets and speaker. Touch interface sliders are attached. LCD display and cable are manually inserted into plastic chassis frame. The capacitive touch PCBA is inserted into chassis. The camera sensor is attached to sensor PCBA via cable. Sensor PCBA and primary faceplate PCBA attached to chassis. The rear cover attached via screws. Within China the faceplate is tested. The assembled faceplate is tested using functional test equipment and procedures. Such processes test the speaker, display, camera, microphone, motion sensor, light sensor, thermometer, bootstrap, and capacitive slider. In China the gang box is assembled. The baseboard PCBA is inserted into plastic wall box. The baseboard PCBA is attached with screws. The mezzanine PCBA pins are inserted into baseboard PCBA. The mezzanine PCBA is secured with screws. A plastic cover and button are inserted. Terminal screws are inserted to interface with home electrical wiring. Within China the gang box is tested. The assembled gang box is tested using the Hipot Test method to verify that the insulation is adequate to withstand high voltage and the safety disconnect mechanism is functional. The AC screw terminal is visually inspected for defects and undergoes torque and insulation testing . Within China the product undergoes the final packaging. The faceplate and gang box are combined and packaged with wire nuts, electrical wire, and user guide for retail sale. The manufacturing process under scenario 2 is as follows: Within India the faceplate PCBA is produced. The faceplate contains three main PCBAs produced by permanently mounting approximately 509 components to bare printed circuit boards using surface mount technology (SMT). Components include the CPU, wireless connectivity radio chip, sensors, memory, and capacitive touch sensor, among others. The individual components of the faceplate PCBA are of mixed origin. Within India the faceplate is flashed with its firmware. The faceplate firmware, which was developed in the United States, is loaded on the non-volatile eMMC flash memory incorporated on the faceplate PCBA. The firmware provides for control of both the faceplate and gang box subassemblies, as well as the user interface presented on the screen, and the implementation of the functions enumerated above, integrations with external third-party devices, and communications with Brilliant’s servers. Within India the gang box PCBA is produced. The gang box contains two PCBAs produced by permanently mounting approximately 325 components to bare printed circuit boards using surface mount technology. Components include a microcontroller, MOSFETs, transformer, opt isolators, fuses, and voltage regulator, among others. The individual components of the gang box PCBA are of mixed origin. Within India the gang box PCBA is flashed and tested. The gang box PCBA’s microcontroller is flashed with US-developed firmware using an in-circuit tester (ICT) fixture. The gang box firmware provides for low-level control over the analog circuitry in the gang box subassembly, and for communications with the faceplate subassembly and performance of commands transmitted by the faceplate subassembly. The gang box PCBAs are also tested using a functional verification test (FVT) fixture. Within China the faceplate is assembled. The plastic chassis is populated with camera lens, PIR lens, lens cover, gaskets and speaker. Touch interface sliders are attached. LCD display and cable are manually inserted into plastic chassis frame. The capacitive touch PCBA is inserted into chassis. The camera sensor is attached to sensor PCBA via cable. Sensor PCBA and primary faceplate PCBA attached to chassis. The rear cover attached via screws. Within China the faceplate is tested. The assembled faceplate is tested using functional test equipment and procedures. Such processes test the speaker, display, camera, microphone, motion sensor, light sensor, thermometer, bootstrap, and capacitive slider. In China the gang box is assembled. The baseboard PCBA is inserted into plastic wall box. The baseboard PCBA is attached with screws. The mezzanine PCBA pins are inserted into baseboard PCBA. The mezzanine PCBA is secured with screws. A plastic cover and button are inserted. Terminal screws are inserted to interface with home electrical wiring. Within China the gang box is tested. The assembled gang box is tested using the Hipot Test method to verify that the insulation is adequate to withstand high voltage and the safety disconnect mechanism is functional. The AC screw terminal is visually inspected for defects and undergoes torque and insulation testing . Within China the product undergoes the final packaging. The faceplate and gang box are combined and packaged with wire nuts, electrical wire, and user guide for retail sale. The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. 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.” 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). 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 upon the facts presented, it is the opinion of this office that the faceplate PCBAs manufactured in India are the dominant components and impart the essence of the finished product. The complex SMT manufacturing production of the faceplate PCBAs in both scenarios involves placement and soldering of numerous individual components onto bare PCBs, thereby creating functional faceplate PCBAs that result in a substantial transformation of the components to produce PCBAs of India origin. The faceplate subassembly imparts the smart home functionality to the Brilliant Control device, whereas the gang box only provides power to the faceplate and electrical lighting control over the hardwired electrical circuit. Further, the faceplate assembly process and packaging performed in China would not substantially transform the faceplate PCBAs. The faceplate PCBAs retain their own identity with a predetermined end use. Therefore, under both scenarios, the country of origin of the Brilliant Smart Home Control device would be India for origin and marking purposes at 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 Steven Pollichino at steven.pollichino@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division