The country of origin of an electronic vaping device

N326016 May 26, 2022 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin J. Michael Taylor King & Spalding LLP 1700 Pennsylvania Ave NW Washington, DC 20006 RE: The country of origin of an electronic vaping device Dear Mr. Taylor: In your letter dated May 10, 2022, you requested a country of origin ruling on behalf of your client, R.J. Reynolds Tobacco Company. The merchandise under consideration is identified as the Vuse Alto Power Unit, which is described as an electronic vaping device. The subject device is comprised of a metal enclosure within which is a printed circuit board assembly (PCBA), rechargeable battery, battery plugs, flexible printed circuit assembly (FPCA), LED light, neodymium magnets,and gasket. The device is designed to allow for the user to attach a cartridge containing the e-liquid to be vaporized at one end. The cartridge also acts as the heating element and mouthpiece that the user will draw the vapor through. We note that the cartridge is not imported with the device and is not subject to this request. In your request, you state that the PCBA is manufactured, through surface mount technology (SMT), in Malaysia. You explain this process as complex and involving the addition of various electronic components which, when finished, will act as the primary controlling apparatus of the finished device. This PCBA is then sent to China where it is combined with all remaining components of the finished device. Per your request, these remaining components originate from China. The “country of origin” is defined in 19 CFR 134.1(b), in pertinent part, 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). Regarding the origin of the subject device, it is the opinion of this office that the PCBA manufactured in Malaysia imparts the essential functional component of the finished device. Further, the assembly process performed in China is not significantly complex in order to allow the individual components to lose their identities. The addition of the Chinese components would not transform the PCBA into a new and different article of commerce with a name, character and use distinct from the individual components. As such, based upon the information provided, the country of origin of the vaping device will be Malaysia. 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 Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division