The country of origin of high voltage distribution cabinets

N350492 July 21, 2025 OT:RR:NC:N2:212 CATEGORY: Origin Rachel Bogin Crowell & Moring 1001 Pennsylvania Ave Washington, DC 20004 RE: The country of origin of high voltage distribution cabinets Dear Ms. Bogin: In your letter dated June 23, 2025, you requested a country of origin ruling on behalf of your client, SK Automation America, Inc. There are three items at issue with this request, which are all described as electrical distribution cabinets used within a complex production line to distribute electricity to an assembly line station. The first item is identified as the Electrical Cabinet for Station 120. The subject device consists of various electronic components such as a Primary Logic Controller Central Processing Unit (PLC CPU), circuit breakers, fans, terminal blocks, bus bars, and a 24V DC power supply among others, within a metal cabinet. After importation, the device will be incorporated within an existing assembly line in order to provide electricity and control. In your request, you state that the assembly process for the subject cabinet occurs in China with components from various countries of origin. In China, circuit breakers, which originate in Bulgaria and the U.S., are added to the cabinet along with metal components, such as DIN rails and cable ducts from various countries. Next, Chinese power supplies, an internal thermostat from Germany and an input/output module from Singapore are added. The U.S. origin PLC CPU is then installed within the cabinet. Fan units, terminal blocks, LED lights, and switches that originate from various locations including Germany, the U.S. and Mexico. Finally, a 24V power supply from the U.S. is installed prior to the cabinet being closed and prepared for shipment to the U.S. We note that the PLC CPU is responsible for processing and executing the electrical controls of the cabinet. Furthermore, the circuit breakers and power supply provide the extensive electrical properties, such as power and protection, that are essential to the functions of the finished cabinet. The second device is identified as the Electrical Cabinet 1 for Station 320 and is comprised of various circuit breakers, a disconnect switch, busbars, and other electrical structural components within a metal enclosure. This electrical cabinet functions as an electrical connection and control point for the appliances within the assembly line. We note that this cabinet is meant to be used in conjunction with Electrical Cabinet 2, which is described below, but the two are not connected prior to importation into the United States and are shipped separately. The manufacturing process for the subject cabinet 1 takes place in China. This process begins with the wire ducts (U.S. origin), DIN rails (Chinese origin), and busbar supports (various origins) being installed within a Chinese metal enclosure. The main circuit breaker and the disconnect switch, which each originate from the U.S. are then clipped to the DIN rail. Two more U.S. origin circuit breakers are then attached to the rail along with multiple terminals and busbars from various origins including China, Germany, and Thailand. The cabinet is then fully enclosed and prepared for shipment to the U.S. The final device is identified as the Electrical Cabinet 2 for Station 320. This cabinet is comprised of a PLC-CPU, circuit breaker, DIN rail, and electrical terminals. In conjunction with Cabinet 1 described above, this cabinet acts as the main electrical control unit for a specific station within the assembly line. This control is primarily accomplished by the PLC-CPU installed within the device. The manufacturing process for Cabinet 2 also occurs in China. This process beings with the PLC-CPU, which originates in the U.S., being installed within the Chinese enclosure along with the CPU power supplies that also are manufactured in the U.S. Chinese DIN rails and bus bars are then attached prior to a Bulgarian circuit breaker being mounted on the rail. A Chinese electrical terminal is also added to the rail. The finished cabinet is then prepared for shipment to the U.S. When determining the country of origin for purposes of applying current trade remedies under Section 301 and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter 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 first electrical cabinet, it is the opinion of this office that the PLC device along with the various electrical circuit breakers impart the essence of the device. These devices extensively contribute to the electrical capabilities necessary for the intended function of the finished device. The assembly process as described is not significantly complex in order to substantially transform these articles into new and different articles of commerce. As such, the country of origin for the Electrical Cabinet for Station 120 will be the United States. Regarding the origin of the second and third cabinets, it is the further opinion of this office that the U.S. originating materials, including the switch and circuit breakers for Cabinet 1 and the PLC for Cabinet 2, impart the essential electrical capabilities, and thus the character, of the finished cabinets. Further, the assembly process undertaken in China is simple in nature and would not significantly alter these electrical capabilities. As such, the country of origin of Electrical Cabinet 1 and Electrical Cabinet 2 for Station 320 will be the United States. Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the USA. 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 Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, James Forkan Acting Director National Commodity Specialist Division