The country of origin of audio adapter

N340694 June 27, 2024 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of Origin Julie Li Taiwan Master Hill Technology Co., Ltd. No.5, Keyun N. Rd., Huwei Township, Yunlin County 632YunlinTaiwan RE:  The country of origin of audio adapter Dear Ms. Li: In your letter dated June 13, 2024, you requested a country of origin ruling. The merchandise at issue with this request is identified as the Inf Audio to Lightning Adapter, part number 733184. The subject adapter is comprised of a length of insulated cable with a lightning-style adapter at one end and a 3.5mm audio jack at the other. In use, the adapter allows the user to connect audio devices equipped with a 3.5mm outlet, such as headphones, to mobile devices through an existing lightning port.   In your request, you state that the manufacturing process described herein occurs in Taiwan. Chinese origin single stranded copper conductors are imported into Taiwan where they are wound, twisted, and stranded into five different conducting cores. You state that this process entails the combination of up to 80 single strands of copper wires into the finished cores. These cores are then bound together, and the insulation is extruded on the exterior. The lightning connector is then assembled on one end while the audio jack is assembled onto the other. We note that the individual parts for these connectors originate from various countries including Taiwan, China, and Japan. The finished article is then packaged for shipment to the United States. The “country of origin” is defined in 19 CFR 134.1(b), in pertinent part, 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.” For tariff purposes, 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). Further, in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade (“CIT”) interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer, the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight, and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted, “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an example, National Hand Tool Corp. v. United States, 16 C.I.T. 308, 310, aff’d 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article. Regarding the origin of the subject adapters, it is the opinion of this office that the manufacturing process performed in Taiwan is significantly complex and would substantially transform the individual components into a new and different article of commerce. Further, the twisting, stranding, bunching and insulation of the individual copper wires adds the significant electrical properties that are necessary to the function of the article. See Headquarters Ruling Letter 562581. Based upon the facts presented, the country of origin for the Inf Audio to Lightning Adapter, part number 733184, will be Taiwan. Importations of this product may be subject to the provisions of Section 133 of the Customs Regulations if they copy or simulate a registered trademark, trade name or copyright recorded with U.S. Customs and Border Protection.  If you are an authorized importer of the product, we recommend notifying your local Customs office prior to importation. 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 Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division