The country of origin of an electrical controller

N334315 August 17, 2023 OT:RR:NC:N2:220 CATEGORY: Origin Allison Kepkay White & Case LLP 701 13th Street Washington, DC  20005 RE:      The country of origin of an electrical controller Dear Ms. Kepkay: In your letter dated July 29, 2023, you requested a country of origin ruling on behalf of your client, Sigma Corporation. The merchandise under consideration is identified as the TEAM Box, which is described as a metal enclosure having a programmable controller, numerous relays, terminal blocks, Ethernet/communication controllers, a temperature sensor, and a humidity sensor.  The function of the TEAM Box, which refers to “Temperature, Environmental, and Auxiliary Management,” is to control the environmental conditions of large battery storage enclosures. In your letter, you state that the TEAM Box is assembled in India by first manufacturing the steel enclosure, where sheet steel is laser cut and then punched, bent, and coated.  Next, the electrical components are assembled into the enclosure, wire connections are made, and the TEAM Box is tested.  You state that the programmable controller, which you refer to as the “computer”, the two Ethernet switches, and the DIN rail mounting system are manufactured in Taiwan, while the 15 electrical relays are manufactured in Germany, the humidity controller is manufactured in China, and the temperature controller is manufactured in 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). Regarding the country of origin of the TEAM Box, in our view, the assembly of the electrical devices, noted as the programmable controller, relays, communication devices, sensors, etc., into an enclosure in India is basic.  Mounting individual electrical apparatus inside an enclosure, attaching wires, and testing, does not substantially transform the individual components, namely the programmable controller and contact relays, into a new and different article.  Furthermore, it is the opinion of this office that the Taiwanese origin programmable controller establishes the identity of the TEAM Box, as it is the supervisory controller over the principal function of the subject merchandise.  As a result, the country of origin of the TEAM Box is Taiwan for origin and marking purposes upon 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 Customs and Border Protection 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