The country of origin of the Charger Combo Pack

N325330 April 27, 2022 OT:RR:NC:N2:220 CATEGORY: Origin Vivi Wu Hank Electronics Vietnam Limited No. 7, 11 Street VSIP Tu Son District, Bac Ninh Vietnam RE: The country of origin of the Charger Combo Pack Dear Ms. Wu: In your letter dated April 8, 2022, you requested a country of origin ruling on behalf of your client, Walgreen Co. The merchandise under consideration is described as the Charger Combo Pack, which consists of a retail package containing a 5W wall power adapter plug, PN HKAP1028, a 20W dual port vehicle power adapter plug, PN HKDP3342M-20, and a 3-foot electric cable. The 5W power adapter is equipped with a two-prong electrical plug on one side and a single USB Type-A socket on the other side. The 20W vehicle power adapter has a 12 V vehicle accessory electrical plug on one side and two USB sockets, one Type-A and one Type-C, on the other side. The electrical cable is described as having a USB Type-A plug on one end and a C89 plug on the other end. The Charger Combo Pack is intended to supply power/charge various personal electronic devices. In your submission, you state that the wall power adapter plug is comprised of materials from China. The assembly process begins with the manufacturing of a printed circuit board assembly (PCBA) that occurs in Vietnam by soldering multiple components, such as integrated circuits, resistors, capacitors, diodes, a transformer, etc. onto a bare PCB via a surface mount and through-hole insertion process. The PCBA is then attached to the plastic housing and the final product undergoes testing and visual inspection before it is packaged with the vehicle power adapter and electrical cable in a retail carton for export. Likewise, the vehicle power adapter plug is also comprised of materials from China. The assembly process begins with the manufacturing of the PCBA that occurs in Vietnam by soldering multiple components, such as integrated circuits, resistors, capacitors, diodes, a transformer, etc. onto a bare PCB via a surface mount and through-hole insertion process. The PCBA is then attached to the plastic housing and the final product undergoes testing and visual inspection before it is packaged with the wall power adapter and electrical cable in a retail carton for export. You also state the electrical cable is comprised of components that are sourced from Vietnam, China, and Taiwan. The Vietnamese origin electrical cable is assembled in Vietnam by soldering a USB Type-A connector to one end of the cable and an C89 connector on the other end. The cable is then tested before it is packaged with the power adapters described above. 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 Charger Combo Pack 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., charging personal electronics). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the Charger Combo Pack 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 articles that provide the essence of the Charger Combo Pack are the power adapters that rectify the electricity and provide power via the USB connections. 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 Charger Combo Pack, in our view the assembly of the PCBAs in Vietnam, for both power adapters, by soldering the individual components onto the bare PCBs results in a substantial transformation of the components to produce PCBAs of Vietnamese origin. Furthermore, it is the opinion of this office that the PCBAs provide the essence of the electrical charging device because they are the articles within the adaptors that convert and supply electricity to electronic devices via the USB sockets. As such, we find that the components that make up the 5W wall power adapter plug and the 20W dual port vehicle power adapter plug are transformed in Vietnam into a new and different article of commerce with a distinct name, character, and use. Thus, the Charger Combo Pack is considered a product of Vietnam for origin and marking purposes at the time of importation into the United States. Importations of this product may be subject to the provisions of Section 133 of the Customs Regulations if they copy or simulate a registered trademark, trade name or copyright recorded with U.S. Customs and Border Protection. If you are an authorized importer of the product, we recommend notifying your local Customs office prior to importation. 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