The country of origin of security cameras

N328146 October 12, 2022 OT:RR:NC:N2:208 CATEGORY: Country of Origin Ms. Alma Arabelovic Robert Bosch One Tower Lane Oakbrook Terrace, IL 60181 RE: The country of origin of security cameras Dear Ms. Arabelovic: In your letter dated September 14, 2022, you requested a country of origin ruling determination. The items under consideration are two security cameras, identified as FLEXIDOME panoramic 5100i indoor cameras and FLEXIDOME panoramic 5100i IR indoor and outdoor cameras. Both cameras can record videos onto an internal SD card. In addition, the subject cameras transmit video images to a location outside the camera for remote viewing or recording through the cloud for storage. The FLEXIDOME panoramic 5100i indoor cameras contain three printed circuit board assemblies (PCBAs); the processing main board, the image sensor board, and the microphone board. The FLEXIDOME panoramic 5100i IR indoor and outdoor cameras contain six PCBAs: the processing board, the image sensor board, the microphone board, the HDMI board, the IR LED board and the POGO Pin board. For both scenarios, the processing board is produced in Taiwan, the image sensor is assembled in China and the other PCBAs are manufactured in Thailand. The processing board and image sensor board are imported into Thailand for final assembly and software programming before the finished cameras are imported into the United States. Based on the information provided, without the processing board, the cameras cannot capture images or sound, cannot process images and sound data into a digital signal, and cannot transmit the data from the cameras. The processing board also performs the critical data security functions for the cameras. The Surface Mount Technology (SMT) process for the processing board occurs in Taiwan from a bare printed circuit board (PCB) sourced from Hong Kong and over 900 electrical components mounted that are sourced from various countries including China and United States. The image sensor requires instructions from the processing board to function. The image sensor acts as an interface for the camera that converts the light waves into signals and transmits the image information. The image sensor cannot store or process the image information that is performed by the processing board. The image sensor is designed and manufactured in the U.S. or in Japan, while the lens is manufactured in Taiwan. As per the information provided, the image sensor PCBA is sourced from China, where over 120 electrical components are mounted onto a bare PCB through an SMT process. Also in China, the CMOS image sensor is attached to the PCBA, and the lens is assembled into a lens holder that is then glued to the image sensor board. The microphone board, is also referred to as a sub-PCBA, must be connected to the processing board to function, is sourced from Thailand, where electrical components are mounted onto a bare PCB by an SMT process. The microphone board controls three digital microphones that allow the camera to receive sound from the surrounding. The HDMI connector board is referred to as a sub-PCBA, needs to be connected to the processing PCBA to function, is sourced from Thailand, where 3 components are mounted to a bare PCB through an SMT process. The HDMI connector is simply a PCB with an HDMI connector mounted. It allows the camera user to easily connect an HDMI cable to the cameras. The IR LED board must be connected to the processing board to function, also referred to as a sub-PCBA, is sourced from Thailand, where 3 IR LED components are mounted to 3 bare PCBs by an SMT process. This PCBA is the embedded lighting illuminator to provide enough light for the image sensor to function at nighttime for the outdoor cameras. The POGO Pin board must be connected to the processing board to function, is sourced from Thailand where 12 electrical components are mounted to a bare PCB through an SMT process. The POGO Pin board provides a mechanical contact to transfer signals/power from the processing board to the IR LED board and microphone board in the outdoor cameras. Then, all of the PCBAs are attached by flexible connectors, plugged or glued together before added to the housing assembly, to produce a finished indoor and outdoor camera ready for importation into the U.S. 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. 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 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 on the facts presented, it is the opinion of this office that the processing board, which is made in Taiwan, contributes to the main functionality of the finished cameras. The complex SMT manufacturing production of the processing board, including the placement and soldering of numerous individual components onto a bare PCB, creates a functional processing board, which results in a substantial transformation of the components to produce a processing board of Taiwanese origin. Further, the assembly process performed in Thailand, would not substantially transform the PCBAs into a new and different article of commerce with a name, character, and use distinct from that of the exported good. Accordingly, the FLEXIDOME panoramic 5100i indoor cameras and FLEXIDOME panoramic 5100i IR indoor and outdoor cameras, would be considered a product of Taiwan 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