The country of origin of a keyboard, video, and mouse (KVM) receiver

N332332 May 8, 2023 OT:RR:NC:N2:220 CATEGORY:  Origin Lori Green Black Box Corp 1000 Park Drive Lawrence, PA  15055 RE:      The country of origin of a keyboard, video, and mouse (KVM) receiver Dear Ms. Green: In your letter dated April 19, 2023, you requested a country of origin ruling. The merchandise under consideration is identified as the Emerald DeskVue, PN EMD5004-R (KVM Switch), which is described as a plastic enclosure containing a motherboard printed circuit board assembly (PCBA), a memory PCBA, a solid-state storage drive (SSD), and a cooling fan.  On the side of the KVM Switch are numerous USB ports, and on the rear of the enclosure are two RJ-45 Ethernet ports, three HDMI ports, and two coaxial connectors.  The KVM Switch functions to interconnect peripherals, such as a keyboard, display, mouse, and more, to an automatic data processing machine. In your request, you provide a bill of material stating the motherboard PCBA, the enclosure, the fan, and an external power supply are manufactured in China.  The memory PCBA and SSD are said to be manufactured in South Korea.  In Ireland, the motherboard PCBA is inserted into the enclosure, the memory and SSD are inserted into sockets on the motherboard, the fan is attached, and the firmware is loaded onto the device.  Next, a custom proprietary firmware that provides the operating system (OS) for the KVM Switch is loaded, the device is inspected, tested, and packaged. 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). Regarding the country of origin of the KVM Switch, you suggest that the assembly work performed in Ireland produces a KVM Switch of Ireland origin.  We disagree.  In our view, the dominant component of the KVM Switch is the motherboard printed circuit board assembly, which is where the processing takes place and also where all the peripheral connections are made.  Furthermore, the assembly work that takes place in Ireland is not complex, where inserting a circuit board into a plastic housing and/or attaching system memory and storage by inserting into a socket, does not affect a substantial transformation of the articles being assembled.  Lastly, the addition of an OS does not substantially transform the Chinese motherboard PCBA.  As a result, the Emerald DeskVue, PN EMD5004-R is considered a product of China for origin and marking purposes at the time of importation into the United States. Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.  The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”  If the component sourcing changes, as you indicate is a possibility for the motherboard PCBA, then the production scenario discussed herein may no longer be applicable as written.  As such, we strongly advise that you seek guidance prior to an importation of a product that is marked other than China for the Emerald DeskVue, PN EMD5004-R. 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