The country of origin of dimmer switch assemblies

N332358 May 5, 2023 OT:RR:NC:N2:220 CATEGORY:  Origin Glenn Page Foreign Trade Zone Solutions LLC P.O. BOX 483 Greenland, NH  03840 RE:      The country of origin of dimmer switch assemblies Dear Mr. Page: In your letter dated April 20, 2023, you requested a country of origin ruling on behalf of your client, HomeSeer Technologies LLC. The merchandise under consideration is identified as the WX300+ In-Wall Dimmer and Switch and the WX300-R2 In-Wall Dimmer and Switch, which are each described as a plastic housing incorporating a printed circuit board assembly (PCBA), an external paddle-style switch operator, and LED indicators.  The dimmer switch assemblies are intended for use in lighting applications where users can control lights manually or through a Z-Wave wireless functionality. In your request, you state that both switches are constructed similarly with the exception of the origin of the processor integrated circuit (IC), where the WX300+ processor IC is manufactured in Korea and the WX300-R2 processor IC is manufactured in Taiwan.  The internal PCBA is said to be manufactured in China by surface and through-hole mounting of numerous electronic components, such as ICs, resistors, capacitors, inductors, diodes, etc., onto a bare PCB.  Additionally, mechanical components such as micro switches, contacts, fuses, and more are mounted onto the PCBA in China.  With the exception of the processor ICs, all of the parts and components that make up the PCBA are of Chinese origin. After the production of the PCBAs, the dimmer switches are both assembled in China by inserting the PCBA into the plastic housing, attaching an aluminum base plate to the housing, snapping on the paddle operating mechanism, and packaging. 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 subject switches, you state the dominant component in each device is its processor IC, and that the WX300+ In-Wall Dimmer should be noted of Korean origin, while the WX300-R2 In-Wall Dimmer and Switch should be of Taiwanese origin.  We disagree. In our view, the dominant component of each dimmer switch is its PCBA, which is not only responsible for making the electrical connections and providing a base for the electrical contacts, but also contains the micro switches that are soldered onto the board.  Furthermore, the assembly work of soldering numerous electrical components onto a bare PCB is considered complex and meaningful, where it substantially transforms the individual components into a new article with a function distinct from the parts that are assembled.  Lastly, with the exception of each dimmer switch’s processor IC, which we would note are also mounted onto the PCBA, every component and part of the dimmer switches, such as electronic components, electrical contacts, the bases, and the shells, are all of Chinese origin and is also where the production of the dimmer switches take place.  As a result, the WX300+ In-Wall Dimmer and Switch and the WX300-R2 In-Wall Dimmer and Switch are considered products 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.” 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