The country of origin of a surge protector

N343426 November 6, 2024 OT:RR:NC:N2:220 CATEGORY: Origin Angelica Tsakiridis Deloitte Tax LLP 555 Mission Street, Suite 1400 San Francisco, CA  94205 RE:      The country of origin of a surge protector Dear Ms. Tsakiridis: In your letter dated October 20, 2024, you requested a country of origin ruling on behalf of your client, Cyber Power Systems, Inc. The merchandise under consideration is identified as the 6 Outlet Surge Protector, Model Number B615, which is described as a plastic housing having six three-prong electrical sockets, a circuit breaker power switch, and a 15 foot power cord.  In use, the Surge Protector functions to distribute electricity to several devices simultaneously.  As part of this electrical distribution function, the power that is distributed is also electrically protected by surge protection.  The Surge Protector is rated at 125 V with a maximum current of 15 A, while providing surge protection of up to 1,500 Joules. Internally, there is one printed circuit board assembly (PCBA) incorporated into the subject Surge Protector, identified as the Main Board, along with three stamped terminal strips, the power switch, and wires/assembly hardware.  The Main Board PCBA, which functions to distribute power to the device and detect power surges, diverting excess voltages away from connected devices to avoid electrical damage, is said to be manufactured in the Philippines by surface mount and/or through hole soldering processes of individual components, such as integrated circuits, resistors, capacitors, diodes, fuses, connectors, etc., onto a bare printed circuit board.  Also in the Philippines, the top and bottom covers are manufactured by plastic injection molding.  You state that the three stamped terminal strips and the switch are manufactured in China, while the braided power cord is said to be manufactured in the Philippines.  In your letter, you describe an assembly process occurring in the Philippines of inserting and arranging the listed components into the plastic cover, soldering wires between the terminals and the PCBA, and testing/packaging. 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 origin of the Surge Protector, the assembly of the Main Board PCBA in the Philippines by soldering the individual components of various origins onto a bare board results in a substantial transformation of those components to produce a PCBA of Philippine origin.  Furthermore, it is the opinion of this office that the Main Board PCBA establishes the function of the Surge Protector because it is the article within the assembly that controls the electrical distribution while sensing for hazardous electrical surges to disconnect when detected.  While the three stamped Chinese origin terminal strips also contribute to the electrical connection function, they are simple stamped metal that do not rise to the complexity and function of the PCBA, and merely provide the physical connection point for the inserted plug from the user.  As a result of the forgoing, we find that the components that make up the Surge Protector are substantially transformed in the Philippines into a new and different article of commerce, and the 6 Outlet Surge Protector, Model Number B615, is considered a product of the Philippines for origin and marking purposes at time of importation into the United States. 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 Karl Moosbrugger at karl.moosbrugger@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division