The country of origin of an automotive camera module.

N322834 December 3, 2021 OT: RR:NC: N2:208 CATEGORY: Country of Origin Mr. Youngmin Kwon LG INNOTEK CO LTD E1/E3, 30, Magokjungang 10-ro, Guangzhou, Seoul, 07796 Korea, South RE: The country of origin of an automotive camera module. Dear Mr. Kwon: In your letter dated November 17, 2021, you requested a country of origin ruling determination. The merchandise under consideration is the Automotive Camera Module, Item Code: ACV01S001X. This merchandise is an AVM (Around View Monitoring) camera, which is mounted on the front, rear, and side of a vehicle and provides a 360-degree view of the area surrounding the vehicle. Moreover, the subject camera captures video images outside the vehicle and transmits them to the vehicle’s Electronic Control Unit (ECU). The AVM cameras consist of Lens, Epoxy, PCBA, Shield Can, and Cover. The manufacturing process for the PCBA, which consists of SMT (Surface Mounter Technology) is carried out in Korea. The underfill, ICT/DC test, routing, and finishing process for assembling covers and lenses is performed in China. Based on the information provided, in Korea, the PCBA is filled with 45 electronic components. The main features and components of the camera are mounted on the PCBA produced through the SMT process, which consists of solder print, SMD (Surface Mount Device), Reflow, 3D AOI (Automatic Optical Inspection), ICT (In Circuit Test), DC TEST Packing. Moreover, SMT is the process of assembling electronic components with automated machines, placing components on the surface of a board (printed circuit board). In this instance, this process includes capacitors (11 pcs), diodes (2pcs), filter beads (3pcs), image sensor, memory (EEPROM), IC power supply (3 pcs), inductor (2pcs), OSC-crystal (1pcs), resistor (13 pcs), bare PCB, Connector, Shield can, etc. The function of capturing and processing images from the camera can be done by the image sensor, which is added to the PCBA in Korea. After the PCBA is manufactured in Korea, it is sent to China. The assembly in China consists of underfill, ICT/DC test, routing for PCBA, assembly of the lens, housing, and shield can. The purpose of underfill /ICT/DC test/routing process is to strengthen the bonding force of parts (image sensor, etc.) to the PCB. The final assembly process is a simple process of assembling the PCBA camera housing, the shield can, etc. 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 with image sensor provides to the main functionality of the finished Around View Monitoring camera (i.e., taking the images, processing it into a digital signal, and transmitting images). The assembly process of the PCBA in Korea by soldering the individual components onto the bare board through SMT processing results in a substantial transformation of the components to produce the PCBA of Korean origin. The assembly process that takes place in China is not complex and does not result in a substantial transformation of the PCBA. Accordingly, the AVM camera would be considered a product of Korea 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