The country of origin of a Koda Secure Digital (SD) memory card

N345325 February 12, 2025 OT:RR:NC:N2:208 CATEGORY: Origin Joey Li Koda Electronics (HK) Co., Ltd 2/F Mandarin Commercial Building, 38 Morrison Hill Road, Wan ChaiHong Kong China RE:  The country of origin of a Koda Secure Digital (SD) memory card Dear Mr. Li: In your letter dated January 22, 2025, you requested a country of origin ruling on an SD card. The merchandise under consideration is the Koda Secure Digital (SD) memory card, model number TM055. This SD card has an internal memory size of 16GB and is used to store photos, video, sound, and file storage. It can be inserted into devices with SD card slots that read the memory card, such as computers, smartphones, digital cameras, etc.  It will also be manufactured with memory sizes of 32GB (TM056), 64GB (TM057) and 128GB (TM058). The production of this SD card is performed in Taiwan and Vietnam.  The production processes can be divided into three parts: printed circuit board assembly via a surface mount technology process (Taiwan), encapsulation process (Taiwan), and testing and final packaging (Vietnam). The PCBA and the memory chip are both manufactured in Taiwan.  First, the printed circuit board assembly (PCBA) is manufactured in Taiwan via Surface Mount Technology (SMT), where Taiwanese electronic components are mounted to the surface of a bare printed circuit board (PCB).  Next, the memory chip is manufactured in Taiwan.  During this process, the Taiwanese wafer goes through several processes, such as grinding, polishing and dicing, which transforms the wafer into a memory chip.  Next, several processes of encapsulation occur, such as die-bonding, molding and cutting.  Then, the memory chip is assembled onto the PCBA, which forms the microSD card.  After that, the microSD card will be compressed into the SD housing by an ultrasonic sealing machine, creating the SD card.  The SD card is then shipped to Vietnam for the final testing, laser edging, and packaging.   Lastly, it is shipped to the United States. 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). Regarding the origin of the subject SD card, it is the opinion of this office that the PCBA with the memory chip imparts the dominant character of the device.  The PCBA with the memory chip performs the primary and essential functions of the finished device.  Further, all components that originate from outside of Taiwan are ancillary and, thus, are substantially transformed by the processes performed in Taiwan.  Based upon the facts presented, the country of origin of the subject SD card, part number TM055, will be 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 Lisa Cariello at lisa.a.cariello@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division