The country of origin of OLED modules

N345328 February 19, 2025 OT:RR:NC:N2:208 CATEGORY: Origin Yoon-Sang Lee Kim & Chang 39, Sajik -ro 8-gil, Jongno-guSeoul 03170South Korea RE:  The country of origin of OLED modules Dear Mr. Lee: In your letter dated January 22, 2025, on behalf of your client, Samsung Display Co., Ltd. you requested a country of origin ruling on OLED modules. The merchandise under consideration is OLED Modules for smartphones and tablets, part numbers AMS645FW01 and AMSA46AS03, respectively.  These OLED display screen modules, which are designed to display information, are intermediate articles intended for use in the manufacturing of smartphones or tablets.  The manufacturing steps performed in Korea to create the OLED cell for model AMS645FW01, which is used in a smartphone, includes a fabrication process that consists of the following steps: the thin film transistor (TFT) process, the evaporation (EV) process, the encapsulation (EN) process, and the cell cutting process.  The TFT and EV processes determine the resolution, size, luminance, maximum scanning rate, color depth, etc., of the OLED modules.  The first step in creating the OLED cell is the FAB process.  During this process, the TFTs are formed on a glass substrate by repeating patterning and deposition; thereby, forming a TFT glass.  The second step is the EV process.  An EV glass is formed from the TFT glass by depositing organic electroluminescent layers and cathodes on top of the glass substrate formed by the TFTs.  The TFT and EV processes determine the resolution, size, luminance, maximum scanning rate, color depth, etc., of the OLED modules.  The third step is the (EN process), in which the EV glass is bonded to another glass or covered by a thin film to prevent oxygen and moisture from penetrating the EV glass, thereby forming an EN glass.  Lastly, the cell is cut into the final products and tested.     For model number AMSA46AS03, which is used in a tablet, the manufacturing processes performed in Korea consist of the TFT process, the evaporation (EV) process, and the encapsulation (EN) process, which creates the OLED cell.  However, the cutting processes are performed in China.   In China, the assembly process occurs for both models.  These steps include assembling the OLED Module by attaching the polarizer (POL), the the display driver integrated circuit (DDI), and the flexible printed circuit assembly (FPCA). The PCBA, known as the Flexible Printed Circuit Assembly does not add any functionality to the display.  When determining the country of origin for purposes of applying current trade remedies under Section 301, 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). Based upon the facts presented, it is the opinion of this office that the Korean OLED panel, which is the dominant component of the OLED module, does not undergo a substantial transformation as a result of the processing that takes place in China.  The OLED panels have a predetermined end use when they are exported from Korea and retain that identity after the processing that takes place within China.  Therefore, since a substantial transformation does not occur as a result of the Chinese processing, the country of origin of the finished OLED modules will be Korea for origin purposes at the time of importation into the United States and as such, the Section 301 Trade remedy would not be applicable. 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