The country of origin of a thin film thermal print head

N351484 August 7, 2025 OT:RR:NC:N1:118 CATEGORY: Origin James Horgan deKieffer Horgan 1015 Fifteenth St., NW Washington, DC 20005 RE: The country of origin of a thin film thermal print head Dear Mr. Horgan: In your letter dated July 18, 2025, on behalf of Kyocera International, Inc. (KII), you requested a country of origin determination for purposes of Section 301 duties, IEEPA tariffs and marking. Pictures and descriptions of the manufacturing processes were included in your submission. The item under consideration is a thin film thermal print head (TPH). The TPH is used within a thermal printer, which uses heat to produce an image or text on specially coated paper, known as thermal paper. A TPH contains a series of small heating elements that are incorporated on a ceramic substrate, which provides support and protection. Coated on the ceramic substrate is the resistor layer. When current passes through this layer, it generates heat, facilitating the desired changes in the printing material. A Thermal Print Head Driver Integrated Circuit (Driver IC), and a Flexible Printed Circuit (FPC) are mounted onto the ceramic substrate. When a print command is sent, the Driver IC activates specific heating elements in the print head. These elements heat up to precise temperatures in a pattern that corresponds to the desired output. The FPC connects the printhead’s electrical components to the printer’s main electronics and incorporates an Electrically Erasable Programmable Read-Only Memory (EEPROM). The EEPROM stores data that needs to be retained even when power to the printer is turned off. The manufacturing process for the TPH begins with a blank ceramic substrate sourced in Japan. The ceramic substrate then goes through a highly automated process (“wafer process”) at a Japanese factory. Resistor and electrode layers, a row of heating elements and soldering pads to prepare for mounting the Driver IC and FPC, are all fabricated on top of the ceramic substrate surface. An overcoat layer is added to protect the row of heating elements from oxidation and abrasion. The work-in-process parts are inspected and shipped to another Japanese factory, where an epoxy protective layer is screen printed onto the parts. The Driver IC, also sourced in Japan, is mounted onto the substrate and encapsulated in a protective resin. Manual procedures such as FPC and heatsink attachment (sourced in China), printing inspection, and attaching a connector bracket are completed at a plant in China. KII proposes two variations to the above manufacturing process scenarios. In scenario A, the FPC incorporating the EEPROM is soldered to the thermal print head in China. In Scenario B, the FPC incorporating the EEPROM is soldered to the thermal print head in Japan. 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). Additionally, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the U.S. Customs and Border Protection (CBP) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of the marking laws and regulations. Based on the information that you provided, it is our view that the article produced in Japan under manufacturing Scenario A contributes to the main functionality of the finished TPH. The functional components, which include the heating elements and the electronic circuits, are already incorporated into the article when it leaves Japan. The parts added in China (i.e., the FPC incorporating the EEPROM, the heatsink and connector bracket) do not alter the basic functioning of the TPH, which has already been predetermined and enabled by the components assembled in Japan. The article does not acquire a new name, character or use by the additional processing in China. It is therefore our opinion that the country of origin for the TPH in Scenario A is Japan. In scenario B, it is our view that the additional processing in China fails to effect a substantial transformation. Adding mounting brackets to facilitate installation or adding a heatsink to dissipate heat, do not alter the main functionality of the TPH that is produced in Japan. It is therefore our opinion that the country of origin of the TPH in Scenario B is Japan. 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 Anthony Grossi at anthony.e.grossi@cbp.dhs.gov. Sincerely, (for) James Forkan Acting Director National Commodity Specialist Division