The country of origin of a digital tape measure

N344318 December 27, 2024 OT:RR:NC:N1:105 CATEGORY: Origin Matthew LapinWiley Rein LLP2050 M Street NWWashington, DC 20036 RE:  The country of origin of a digital tape measure Dear Mr. Lapin: In your letter dated November 26, 2024, on behalf of your client, Reekon Tools, Inc., you requested a country of origin ruling on a digital tape measure. The item under consideration is the TlM Utility Tape Measure, which is a digital tape measure that provides an electronic measurement reading in addition to a standard manually read tape. The device has Bluetooth capability and mobile phone application integration as well as electronic measurement data storage. The tape measure has a manual tape measure reel/spring/blade/magnet assembly, as well as a set of four printed circuit board assemblies (PCBAs) that run and govern the digital function of the device. The electronics interpret a printed reading (similar to a barcode pattern) on the bottom of the tape reel using a series of LEDs and photodiodes to generate a signal correlating to a specific position. This position is both error-checked as well as interpreted into a linear measurement (based on both incremental and absolute position reading) and then displayed to the user on an LCD screen. Measurements can then be saved to system memory as well as sent over Bluetooth to the accompanying mobile app. The tape measures will be available in 16-foot and 25-foot versions. The mechanical components include: the tape reel/spring/blade/magnet assembly, which allows for manual control of the tape measure prior to digital readout; the plastic shell, fastener, autolock button and autolock mechanism, which are the plastic components that encase the reel/spring/blade/magnet assembly; and the manual tape measure locking mechanism. The electronic components include: the main PCBA, which drives the overall function of the device as well as reads, interprets, transmits, displays and stores the measurements. Firmware may be flashed onto the device during assembly of the PCBA or later in the process. The reader module PCBA fits around the tape measure blade and reads the special barcode pattern printed on the bottom of the tape measure to determine its linear position; the LEDs serve as emitters and photodiodes as receivers for generating both an incremental and absolute signal depending on how the tape is moved. These signals can match a linear measurement, which is then displayed to the user on the LED display; the extender PCBA acts as a connector that attaches the reader module to the main board; the button board PCBA is the PCBA responsible for connecting to the external user button interface; the LCD display shows the measurement data to the user.The tape blade assembly (tape reel/spring/blade/magnet assembly) manufacturing process consists of cutting and heat treating the raw steel coil into a tape, painting and pressing the markings onto the tape with an inked pad, cutting the tape blade to length, and packaging it so it can be shipped to its assembly location. The PCBA manufacturing process have several slightly different assemblies. The Main Board and Reader Module PCBAs are assembled and soldered using robotic pick-and-place and soldering machines with workers performing electrical tests for quality purposes on each PCBA. Workers also perform software programming, system tests, and system calibrations and tuning. Firmware may be flashed on to the Main Board PCBA at this stage or any time prior to final assembly. Key PCBA components include PCBs, comparator integrated chips, power regulator integrated chips, power chips, photodiodes, potentiometers, LEDs, extender and LCD connectors, a USB connector, a Bluetooth system on chip, and various passive electronics. Manufacturing of the reader module also includes insertion of the Reader Module PCBA into the plastic housing. Final assembly of the additional components includes connecting the LCD screen to the PCBAs.  The Main Board PCBA assembly is inserted into a plastic shell, a battery is added, the tape blade assembly is incorporated along with the reader module, and the device is enclosed into a completed plastic shell. In your letter, you describe three manufacturing scenarios. In the first scenario, each of the PCBAs will be fully manufactured in Vietnam and sent to China for assembly into the finished tape measure. All other components, including the tape reel/spring/blade/magnet assembly, will be manufactured in China. The final assembly of the reader module and digital tape measure will occur in China. In the second scenario, the tape reel/spring/blade/magnet assembly will be manufactured in Thailand, while all other components, including the PCBAs, will be manufactured in China. Final assembly of the reader module and digital tape measure will occur in China.In the third scenario, the PCBAs are manufactured in Vietnam and the tape reel/spring/blade/magnet assembly will be manufactured in Thailand, while all other components will be manufactured in China. Final assembly of the reader module and digital tape measure will occur in China. When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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). It is this office’s opinion that while the PCBAs are important for enhancing the features of the tape measure, it is the marked tape itself which provides the immediate measurement determination and is therefore the essential component. The display will “check” that the measurement is correct, however, the accuracy of the user reading the tape should be the same as the digitally displayed version. The additional functionality, such as the saved readings, center finding and countdown, are nice features to have, but are not the essential component of the device. Once the manually read tape is populated with the numbers, allowing the tape measure to act as a measuring device, it becomes a new and different article. The connection of the PCBAs and LED screen provides additional features but only enhance the ability to measure in different ways. It does not change the primary function of the tape measure, which is to measure distance. In view of these facts, the country of origin for scenario one will be China, which is where the tape reel/spring/blade/magnet assembly and final assembly is conducted. The country of origin for scenario two will be Thailand, which is where the tape reel/spring/blade/magnet assembly is produced. While the final assembly is conducted in China, we find the assembly to be simple and only requires putting together the components that have already been constructed. Finally, in scenario three, the country of origin will be Thailand, which is where the tape reel/spring/blade/magnet assembly will be sourced from. As stated earlier, the PCBAs are important but are not the essential component driving the origin of the finished tape measure. Additionally, the simple assembly in China does not change the article into a new and different product. 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 Jason Christie at jason.m.christie@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division