The country of origin of a Koda Universal Serial Bus (USB) storage device

N345326 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 Universal Serial Bus (USB) storage device Dear Mr. Li: In your letter dated January 22, 2025, you requested a country of origin ruling on a USB device. This merchandise under consideration is the Koda USB storage device, model number TM059.  This USB drive has an internal memory size of 16GB.  It will also be manufactured with memory sizes of 32GB (TM061), 64GB (TM064) and 128GB (TM065).  Moreover, the subject USB drive stores data, which can be read through the USB port on devices, such as computers, smartphones, digital cameras, etc. The production processes can be divided into three phases: printed circuit board assembly (PCBA) via a surface mount technology (SMT) process (performed in Taiwan), encapsulation process (performed in Taiwan), and testing and final packaging (performed in Vietnam). First, the PCBA is manufactured in Taiwan via the surface mount process.  During this manufacturing process, Taiwanese electronic components are populated onto the bare printed circuit board.  Next, the memory chip is manufactured in Taiwan. During this process, the Taiwanese wafer goes through several steps, such as grinding, polishing and dicing, which transforms the wafer into a memory chip.  The memory chip is then assembled onto the PCBA.  After that, the PCBA with memory chip goes through several processes of encapsulation, such as die-bonding, molding, etc., which produces the User Datagram Protocol (UDP).  After the UDP is produced, it is shipped to Vietnam for final testing, laser edging, assembly with the USB housing, and packaging for shipment 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 USB drive, it is the opinion of this office that the PCBA with the memory chip imparts the character of the finished device.  The PCBA with the memory chip performs the essential functions of the USB drive.  Further, the assembly process performed in Vietnam does not substantially transform the PCBA with memory chip into new and different articles of commerce.  Based upon the facts presented, the origin of the subject USB device, model number TM059, 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