The country of origin and marking of an adapter cable assembly

N324307 March 4, 2022 MAR-2-85:OT:RR:NC:N2:209 CATEGORY: Marking, Country of Origin Cindy Chang aegis Multimedia Inc. 2F., No. 21, Ln. 48, Guangming St., New Taipei Taiwan RE: The country of origin and marking of an adapter cable assembly Dear Ms. Chang: In your letter dated February 12, 2022, you requested a country of origin and marking ruling. The item concerned is an 8-inch-long cable assembly referred to as the aegis DisplayPort male to VGA female adapter (DP TO VGA adapter), part number: 431071010158. This assembly consists of an 8-inch-long cable with a display port male connector (source signal input) at one end, and a VGA connector housing with a printed circuit board assembly (PCBA/signal output) on the opposite end. This adapter assembly is used to covert signals between a computer and monitor. The PCBA within the VGA connector is the main component and functions to convert the DisplayPort signal into a VGA signal. The main purpose is to allow a VGA monitor to use the DisplayPort signal of the new desktop or laptop. The PCBA is manufactured within Taiwan from electrical components (i.e., capacitors, inductors, resistors, DC converter, flash memory and main chipset) from various countries of origin (i.e., China, Taiwan, South Korea). Within Taiwan, the finished printed circuit board assembly is manufactured using surface mount technology (SMT). High speed and slow speed chip mounting machines, solder paste printing machines and reflow ovens are used in the manufacturing process, followed by an inspection. Finally, the VGA connector is soldered to the PCBA. Then within Taiwan, this PCBA/VGA connector assembly is manufactured into the finished product. Sub-assemblies such as an 8-inch cable with DisplayPort connector, metal shells and plastic ABS shells from China are soldered and assembled to the PCBA/VGA component forming the finished adapter assembly. A complete manufacturing process description and explanation has been provided. 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 manufacturing process that takes place within Taiwan to create the PCBA/VGA converter component (the dominant component) is substantial and complex. The various electrical elements are transformed within Taiwan into a different article with a new name, character, and use. They lose their separate identities and become an integral part of a new article as a result of the manufacturing process. Additionally, the final assembly process is also conducted within Taiwan and results in the manufacture of the finished good. Accordingly, the country of origin of the aegis DisplayPort male to VGA female adapter (DP TO VGA adapter), part number: 431071010158 for country of origin marking purposes would be Taiwan at the time of importation into the United States. The adapter should be legibly, conspicuously and permanently marked in accordance with the requirements of 19 U.S.C. 1304 to indicate that its country of origin is Taiwan. 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