The country of origin of a hard disk drive

N350850 July 15, 2025 OT:RR:NC:N2:208 CATEGORY: Origin Myles Getlan Cassidy Levy Kent (USA) LLP 2112 Pennsylvania Ave. NW, Suite 300 Washington, DC 20037 RE: The country of origin of a hard disk drive Dear Mr. Getlan: In your letter dated July 1, 2025, you requested a country of origin ruling on behalf of your client, Toshiba America Electronic Components, Inc. The merchandise under consideration is referred to as the Toshiba Canvio HDD, which is a hard disk drive that magnetically stores data, such as documents, pictures, and videos. The Canvio HDD is an external device that can connect to a computer via a Universal Serial Bus (USB). This external hard disk drive is intended to allow users to easily transport data files on the go and free up space on an internal hard drive on one’s personal computer. The Canvio HDD is comprised of four main components, which are a Voice Coil Motor (VCM), which is the drive motor of the magnetic head that reads and writes the data; a Media, which is a magnetically coated disc where the data is magnetically stored; a Head Gimbal Assembly (HGA), which reads and writes the data magnetically; and a Spindle Motor (SPM), which allows the Media to rotate. In the Philippines, the VCM is assembled from components of the Philippines, Thailand or Malaysia using two different manufacturing processes. The first process is through the Actuator Flexible Printed Circuit Assembly (AFA), which occurs by bending the flexible printed circuit (FPC) and positioning the FPC fantail to the actuator circuit assembly, which is combined on the VCM through soldering. The second process is through the Actuator Pivot Flexible Printed Circuit Assembly, in which a bearing is attached to the VCM using adhesive. The VCM with the bearing attached undergoes UV and oven curing processes. Next, the Head Stack Assembly (HSA) is produced by placing both the HGA (which is assembled in China using components from various countries) and VCM on a tray. The arm of the VCM is used to mount and attach the HGA to the VCM through swaging and a laser soldering process. The finished assembly is known as the Head Stack Assembly. Then, the Head Disk Assembly (HDA) is produced in the Philippines. An inner stopper and gasket are mounted onto the SPM. Screws and ramps are then placed on a pallet by an operator and the bottom yoke is screwed into the SPM. The Media, which is assembled in either Singapore or Japan and is imported into the Philippines, is mounted on the SPM and secured by utilizing a clamper with a screw. Next, the ramp and HSA are attached to the SPM with a screw. An operator will manually place a latch (a mechanism that protects the HSA from outside impact) on the SPM while the top yoke is mounted to the SPM. The top cover is fastened to the SPM and the device is tested for air leaks. The unit is tested to ensure the media rotates properly and a visual inspection takes place. After the HDA is complete, a printed circuit board assembly (PCBA) is assembled into the Canvio HDD. The PCBA is manufactured in the Philippines via SMT using integrated circuits, resistors, capacitors, and diodes. This PCBA plays a role in data read/write control, motor control, overvoltage protection, and support s the stable operation of the Canvio HDD. Firmware is then downloaded onto the Canvio HDD, and the device undergoes performance inspection, confirming the quality of the full read and write capabilities. The Canvio HDD is then shipped to China for final assembly. In China, the Canvio HDD is enclosed in an external case, the product ID is changed, which is where a serial number is added for the USB connector into the firmware and the “Auto Power Off” function (which allows the device to transition into a stand-by state if there has been no read/write activity for a three minute period of time) is turned on. Further testing is performed to confirm whether data is accurately written, as well as confirming the software and formatting is correct. Lastly, the Canvio HDD undergoes its final physical appearance check and is packaged for shipment to the United States. When determining the country of origin for purposes of applying current trade remedies under Section 301and 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). Based on the facts presented, it is the opinion of this office that the assembly processes described as taking place in the Philippines, consisting of assembling the VCM, HSA, HDA, and PCBA into a single device, represent a substantial transformation of multiple components into a new and different article of commerce. The processes completed in China, consisting of enclosing the device in an external case, changing the product ID, and adding the “Auto Power Off” function, do not substantially transform the device into a different article of commerce. As a result, we find that the Toshiba Canvio HDD is considered to be a product of the Philippines for origin purposes at the time of importation into the United States. 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, James Forkan Acting Director National Commodity Specialist Division