The country of origin of LED grow lights

N335263 October 4, 2023 OT:RR:NC:N4:410 CATEGORY: Origin Elizabeth Lowe Venable LLP 600 Massachusetts Avenue, NWWashington, DC 20009 RE:  The country of origin of LED grow lights Dear Ms. Lowe: In your letter dated September 12, 2023, you requested a country of origin ruling on LED grow lights This is in response to your letter dated September 12, 2023, on behalf of your client XIC Innovation Limited, requesting a country of origin determination of LED grow lights. The LED grow lights are designed for high-intensity indoor horticulture and high-efficiency greenhouse applications. The submitted information indicates that the LED grow lights each consist of an LED module, a power supply, lens, heatsink, light box covers and hardware, such as screws, cable, connector, wires, etc. The LED module is made in Hong Kong, the connector is made in Germany, and the rest of the components or materials are made in mainland China. In Hong Kong, numerous electronic components are incorporated onto the PBC (Printed Circuit Board) to produce the Printed Circuit Board Assembly (PCBA) using a process of Surface Mount Technology (SMT). SMT is a method of manufacturing PCBAs whereby components are soldered to the surface of the PCB rather than placed into holes on the PCB. LEDs are populated to the PCBA in the process. Numerous testing and inspections are conducted in each step during the manufacturing of the PCBAs. The finished PCBAs (with LEDs attached) are shipped to mainland China where they are assembled with the rest of the components to produce the LED grow lights. It is stated that the LED PCBA component costs over 60% in the total value of the component materials. 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 on the information presented in scenario, the manufacturing process of LED module performed by the factory in Hong Kong, i.e., the making of PCBA via SMT process and attaching the LEDs to the PCBA to form the light source, is complex and meaningful, which do constitute a substantial transformation. In contrast, the assembly processing in China, which assembles the components together with screws, connectors, soldering, etc., is insufficient to amount to a substantial transformation of the PCBA with LEDs. The LED module (light source) is the single most important and critical component.  It possesses the predetermined end-use for the making of the LED light. Thus, we find that the country of origin for the LED grow lights in the scenario will be Hong Kong. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. 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 Michael Chen at michael.w.chen@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division