The country of origin of heat sensor

N341875 August 28, 2024 OT:RR:NC:N2:209 CATEGORY: Origin Robert Stang Husch Blackwell LLP 1801 Pennsylvania Ave., Suite 1000Washington, DC 20006 RE:  The country of origin of heat sensor Dear Mr. Stang: In your letter dated August 6, 2024, you requested a country of origin ruling on a heat sensor The product in question is a heat sensor for use within a clothes dryer. The sensing element is a negative temperature coefficient (NTC) thermistor which is housed with a plastic case/mounting assembly. The NTC chip is encapsulated in epoxy and placed in a separate plastic case that penetrates the plastic case fixed to the dryer’s housing such that the encapsulated NTC sensor chip is in direct contact with warm air from the dryer’s drum. As that warm air flows over the encapsulated NTC sensor chip, the air temperature increases or decreases the NTC sensor chip’s electrical resistance. The electrical resistance in the NTC sensor chip is transmitted through the thermistor’s terminals via wiring to a heater control within the dryer. The thermistor/heat senor manufacturing and assembly operations fall into two primary categories, manufacturing operations specific to the NTC sensor chip undertaken in Taiwan  and manufacturing operations specific to the fully assembled thermistor/heat senor undertaken in China. The thermistor’s component materials originate from both China and Taiwan.   The NTC sensor chip manufacturing process which takes place in Taiwan: Raw Material Preparation: The process begins with the precise blending of raw materials: powdered transition metal oxides, solvent and an organic binder. The oxides, solvent and binder are combined using a wet process technique called ball milling. During the ball milling process, the raw materials are blended and the particle size of the oxide powders is reduced. Combining the oxide powders with the solvent and organic binder forms a thick slurry. Foil Casting: The slurry is spread over a moving plastic carrier sheet forming a thin, uniform layer. This layer is dried by being moved through a tunnel oven, which results in a flexible foil tape. Wafer Formation (Cutting, Stacking, Pressing): The dried foil is cut into squares, stacked and pressed to form wafers of the desired thickness. Binder Burnout: The wafers undergo a binder burnout cycle to remove most of the organic binders added during the raw material preparation process. Sintering: The processed wafers are sintered (i.e., heated to a very high temperature in an oxidizing atmosphere). This step fuses the oxides together, forming a dense ceramic matrix with the desired electrical properties. Dicing and Electrode Layering via Screen Printing: The sintered wafers are diced into individual chips. Thereafter, an electrode layer is screen printed onto the chips enabling an electrical connection. Final Testing and Packaging: The finished thermistor chips undergo testing to ensure they meet the required specifications. Thereafter, they are marked, packaged, and prepared for shipment. The thermistor/heat sensor assembly and manufacturing process that takes place in China: After being manufactured in Taiwan the NTC sensor chips are shipped to an assembly facility in China where they undergo the 30-step manufacturing and assembly process. All of the manufacturing and assembly processes undertaken in China are quick and simple operations such as: wire cutting soldering wire leads to chip soldering leads to brass terminals coating, testing, cleaning, drying epoxy sealing resistor chip within plastic housing assembly with mounting bracket A complete explanation of the assembly process has been submitted with ruling request. 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 upon the facts presented, it is the opinion of this office that the manufacturing processes that take place within Taiwan to create the actual resistor chip, is both substantial and complex. The character of this heat senor is imparted by the Taiwanese produced resistor chip. The resistor chip would be considered the dominant components of this assembly. The resistor has a predetermined end use when exported from Taiwan and the assembly/manufacturing process that takes place in China does not change the end use of the resistor chip. A substantial transformation does not occur as a result of the Chinese processing. Therefore, since a substantial transformation does not occur as a result of the Chinese assembly process, the country of origin for marking purposes would be Taiwan upon importation into the United States.The heat sensor assembly should be legibly, conspicuously, and permanently marked in accordance with the requirements of 19 U.S.C. 1304 to indicate that its country of origin is Taiwan. 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 Steven Pollichino at steven.pollichino@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division