The tariff classification and country of origin of bus bars

N329036 November 9, 2022 CLA-2-85:OT:RR:NC:N2:220 CATEGORY: Classification; Origin TARIFF NO.: 8537.10.9170; 9903.88.03 Sabrina Suszek TE Connectivity 2800 Fulling Mill Road Middletown, PA 17057 RE: The tariff classification and country of origin of bus bars Dear Ms. Suszek: In your letter dated October 31, 2022, you requested a tariff classification ruling. The merchandise under consideration is referred to as a Busbar Assembly, which is described as stamped copper sheet having multiple crown clip connectors and an insulative laminate. The Busbar Assembly is shaped with a number of electrical connection points and predrilled holes that facilitate electrical interconnections. The Busbar Assembly is imported with its crown clip connectors attached, which allow it to distribute electrical power to blade power supply units in a rack and/or cabinet configuration. In your request, you suggest the Busbar Assembly is classifiable under subheading 8537.10.9170, Harmonized Tariff Schedule of the United States (HTSUS). We agree. The applicable subheading for the Busbar Assembly will be 8537.10.9170, HTSUS, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity…: For a voltage not exceeding 1,000 V: Other: Other: Other”. The general rate of duty will be 2.7 percent ad valorem. Regarding the country of origin of the Busbar Assembly, you state that Chinese origin copper sheet is blanked/stamped to shape in China. The stamped bus bar is then imported into the Philippines where it is bent, tapped, plated, insulated, and fitted with 12 Chinese origin connectors. The Busbar Assembly is then inspected, tested, and packed for export to the United States. 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. 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). Based upon the review of the provided information, it is our opinion that the blanking and stamping of the copper sheet in China produces an electrical bus bar of Chinese origin. While the stamped bus bar is further processed, those subsequent operations in the Philippines, such as bending, insulating, plating, laminating, and attaching connectors, are not complex operations and do not substantially transform the bus bar. Further, we would note that prior to importation into the Philippines, the stamped bus bar has the general size, shape, and form of the finished Busbar Assembly. Lastly, each of the crown clip electrical connectors are also of Chinese origin, so that the final assembly incorporates the Chinese bus bar and the 12 Chinese connectors, none of which are substantially transformed as a result of the operations described. As such, the country of origin of the Busbar Assembly is China at the time of importation into the United States. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8537.10.9170, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8537.10.9170, HTSUS, listed above. The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at the following addresses: https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions https://www.cbp.gov/trade/remedies/301-certain-products-china Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current. 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