The country of origin of a computer mouse

N324799 March 29, 2022 OT:RR:NC:N2:220 CATEGORY: Origin Han Tseng TCM Logistic Services Inc. 47693 Lakeview Blvd. Fremont, CA 94538 RE: The country of origin of a computer mouse Dear Mr. Tseng: In your letter dated March 15, 2022, you requested a country of origin ruling on behalf of your client, Darfon America Corp. The merchandise under consideration is referred to as the Mouse, which is described as a wireless input device for use with automatic data processing machines. The Mouse is packaged together with a USB extender, USB dongle, and a USB cable in a retail box. You state that the Mouse is assembled in China from a printed circuit board assembly (PCBA), plastic shell housings, a magnet, a scrolling wheel, and a battery. In your submission, you explain that the PCBA is manufactured in Taiwan by soldering individual components, such as integrated circuits, resistors, capacitors, diodes, connectors, switches, etc. onto a bare PCB via a surface mount and through-hole insertion process. The PCBA is then programmed, tested, and subsequently exported to China. In China, the PCBA is inserted into the plastic shell components, the battery, scrolling wheel, and magnets are attached, and the shell is screwed together to form a functional input unit identified as the Mouse. The Mouse is then packaged in the retail carton and readied for export to the United States. General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3. GRI 3 (a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3 (b) or GRI 3 (c) taken in the appropriate order in which they are set out in GRI 3. GRI 3 (b) states in part that composite goods or sets, which cannot be classified by reference to GRI 3 (a), are to be classified as if they consisted of the component that gives them their essential character. The Explanatory Notes to the Harmonized Tariff System, although not legally binding, provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3 (b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without re-packing. Goods classifiable under GRI 3 (b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. The Mouse set consists of two or more different articles that are, prima facie, classifiable in different headings. The set also consists of articles put up together to carry out a specific activity (i.e., interaction with an ADP machine). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the Mouse set is described within the meaning of "goods put up in sets for retail sale". In accordance with GRI 3 (b), which states in part that goods put up in sets for retail sale, that cannot be classified by reference to GRI 3 (a), are to be classified as if they consisted of the component which gives them their essential character. In our view, the article that provides the essence of the Mouse set is the Mouse itself. 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.” The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). Regarding the country of origin of Mouse set, in our view, the assembly of the PCBA in Taiwan by soldering the individual components onto the bare board results in a substantial transformation of the components to produce a PCBA of Taiwanese origin. Furthermore, it is the opinion of this office that the PCBA establishes the essence of the Mouse because it is the article within the assembly that detects the movement via the optical sensors, performs the scrolling functions, wirelessly transmits the encoder data to the attached ADP machine, and more. Moreover, it is the view of this office that the assembly operations performed in China are not complex and do not substantially transform the PCBA by combining with the wheel, the battery, the plastic housings, etc. As such, we find that the components that make up the Mouse set are not transformed in China into a new and different article of commerce with a distinct name, character, and use and the retail packaged Mouse set is considered a product of Taiwan for origin and marking 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 Karl Moosbrugger at karl.moosbrugger@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division