The country of origin and marking of musical instrument tuners

N334434 August 21, 2023 OT:RR:NC:N1:105 CATEGORY: Origin; Marking Donald SteinGreenberg Traurig, LLP2101 L Street, NW, Suite 1000Washington, DC 20037 RE:  The country of origin and marking of musical instrument tuners Dear Mr. Stein: In your letter dated August 2, 2023, on behalf of your client, Evets Corporation, you requested a country of origin and marking ruling on musical instrument tuners. The items under consideration are described as musical instrument tuners under part numbers ST-8 and SN-RE. The ST-8 is a standard battery powered tuner while the SN-RE is a rechargeable battery powered tuner. Due to the rechargeable nature of the SN-RE, it has a recharging circuit on the printed circuit board assembly, which requires a few additional components than the ST-8. Both devices operate in a substantially similar way by assisting musicians to better tune their instruments. In operation, the tuner is clipped onto the musical instrument and a vibration sensor in the tuner (the “buzzer”) senses the vibration. The processor chip converts the vibration frequency to a letter note (A, B, C, D, E, F, or G) and displays the letter on the LCD screen. The processor chip also determines to what degree the note played on the musical instrument is sharp (#) or flat (b) and that result is also shown on the LCD screen. This allows the user to adjust tuning to the desired pitch. The finished tuners are comprised of a Chinese printed circuit board (PCB), Chinese PCB surface mount technology (SMT) components (resistors, capacitors, transistors, etc.), Chinese op amp chips, Chinese chips for battery charging, a Chinese rechargeable battery (SN-RE model), a Japanese lithium battery (ST-8 model), a Chinese LCD screen, a Chinese buzzer, a Korean processor chip, and various other small parts from China including the enclosure. The blank printed circuit board and all of the components necessary for the assembly of the PCBA are sent from their respective countries of origin to Taiwan for the SMT assembly process. There are 29 components involved in the assembly of the PCBA for the ST-8 model tuner (12 resistors, 13 capacitors, 1 transistor, 1 MCU (processor chip), 1 op amp and 1 tact switch), and 44 components involved in the assembly of the PCBA for the SN-RE model tuner (17 resistors, 18 capacitors, 1 transistor, 1 MCU (processor chip) , 1 charging chip, 1 voltage regulator chip, 1 op amp and 4 tact switches). Once assembled, the finished PCBA will be returned to China where the American-programmed software will be loaded (a minor process that takes just a few seconds), the battery terminals are added, and the crystal and springs that connect to the buzzer are added to the PCBA. The PCBA is then mounted into the product enclosure. Finally, the LCD screen is added, a battery is inserted, and the product is tested and packed for shipment. With regard to the origin of the musical instrument tuners, 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 courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).Based upon the facts presented, it is the opinion of this office that the PCBA surface mount technology assembly process, which includes the installation of the Korean origin processor chip, results in a substantial transformation of the Chinese and Korean components. Furthermore, it is the opinion of this office, that the printed circuit board assembly provides the essential component of the musical tuners since the PCBA allows the item to function as a tuner. Accordingly, we find that the components that make up the musical tuners are transformed in Taiwan, which is where the surface mount technology takes place, to generate a functional PCBA. This is where the individual components turn into a new and different article of commerce with a name, character, and use distinct from the articles exported. Thus, for origin and marking purposes, the ST-8 and SN-RE musical instrument tuners are considered products of Taiwan at time of importation into the United States. In your letter, you also request a determination as to whether the musical instrument tuners can be marked “Product of Taiwan; Assembled in China.” In our opinion, this marking would be confusing to the end consumer and, therefore, would not be an allowable marking. The proper marking of the ST-8 and SN-RE musical instrument tuners would read “Made in Taiwan.” 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 and Border Protection 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, please contact National Import Specialist Jason Christie at jason.m.christie@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division