The country of origin of a Liquid Flow Controller and a Flow Control Module

N328875 November 15, 2022 OT:RR:NC:N1:105 CATEGORY: Country of Origin Lucas A. Rock ArentFox Schiff LLP 1301 Avenue of the Americas, 42nd Floor New York, NY 10019 RE: The country of origin of a Liquid Flow Controller and a Flow Control Module Dear Mr. Rock: In your letter dated October 20, 2022, on behalf of your client, Malema Engineering Corporation (“Malema”), you requested a country of origin ruling determination on the LFC 7000 Series Ultrasonic Liquid Flow Controller (“LFC-7000 Series”) and the MFC-8100 Series Integrated Flow Control Module for Slurries and Chemicals (“MFC-8100 Series”). The subject LFC-7000 and MFC-8100 Series Flow Controllers are devices that measure liquids and slurries and control liquid flows. They are designed to suit high purity applications for controlling the flow of water, chemicals, and slurries. These closed loops flow controllers come in various shapes and sizes to meet the installation requirements of large semiconductor equipment manufacturers. In addition, the flow controllers can also be used as standalone controllers in chemical dosing and flow control applications. The flow controllers incorporate the following components: Japanese enclosure panels (housing) provide the platform for all of the components to mount to and contain channels that form the main flow path of the liquid; an Indian printed circuit board assembly (“PCBA”) also referred to as a “main board” provides power supply to the flow controllers and controls all of the controller commands; a U.S. driver board is designed to drive the stepper motor in the valve to control the flow; a U.S. electronic packaged board transmits and receives pulses to the ultrasonic transducer; a South Korean flow control sensor measures the flow of the fluid throughout the device; a Chinese flow control valve regulates the flow of the fluid; and a Chinese main valve controls the flow based on the signal received from the flow sensor and shut-off valve (only in the MFC) used as an on-off valve. The production assembly process for the LFC and MFC Series flow controllers are nearly identical and involve three phases. In the first phase, the main board is imported from India and is loaded with U.S.-origin firmware at the Malema USA site. Malema USA also assembles the sensor and the main valve. Then the main board, sensor, and main valve are shipped to Malema Singapore. In the second phase, Malema Singapore builds the Housing Enclosure on their specialized CNC machines from material imported from Japan. The Housing Enclosure is then fitted with a fan and connectors. The main board, sensor, and main valve with motor and driver board, are then assembled and connected into the Housing Enclosure. An additional shut-off valve, imported from a different U.S. supplier, not related to Malema, is also included in the assembly for the MFC’s only. This phase also includes the initial testing sequences to check the flow controllers’ power, communication, software, and other functions. The testing verifies the flow controllers flow rate capacity for designated periods. Additionally, a leak test is performed as well as a test for the valve turning functionality. In the final phase, test and calibration takes place. This includes Malema Singapore performing a final testing sequence using Malema’s graphical user interface (GUI) software. Then the MFC or LFC unit is connected to a flow line and calibrated to ensure the unit performs to the customer’s specifications. Calibration includes a number of specific set points ensuring the flow range is within a certain accuracy range. Adjustments are made to the controls until all ranges are within the required set parameters. Finally, the unit goes through the labelling, cleaning, final inspection and packing processes. 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.With regard to your request for the appropriate country of origin of the Liquid Flow Controller and the Flow Control Module, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means 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, and 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). In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly operations that are minimal will generally not result in a substantial transformation. In the scenario described above, various structural components of the Liquid Flow Controller and the Flow Control Module, to include the Japanese enclosure panels, the Indian PCBA, the U.S. driver board and electronic packaged board, the South Korean flow control sensor and the Chinese valves, are transformed in Singapore through a complex manufacturing, assembly, and calibration process. The processing results in individual components losing their separate identities to become new articles, e.g., a Liquid Flow Controller and a Flow Control Module. Accordingly, the country of origin of the Liquid Flow Controller and the Flow Control Module for marking purposes will be Singapore. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect.  In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.  You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. 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 Jason Christie at jason.m.christie@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division