The country of origin of Array Waveguide Grating (“AWG”) modules

N358924 March 17, 2026 OT:RR:NC:N2:350 CATEGORY: Origin Ms. Lisa Murrin Expeditors Tradewin, LLC 795 Jubilee Drive Peabody, MA 01960 RE: The country of origin of Array Waveguide Grating (“AWG”) modules Dear Ms. Murrin: In your letter dated February 17, 2026, you requested a country of origin ruling on behalf of your client Accelink Technologies regarding two AWG modules from Denmark The Array Waveguide Grating (“AWG”) modules, model numbers “AAWG-3-F-44/44-C21-LU-12-05” and “AAWG-3-F-42/42-C21-LU-12-05” in question are compact optical devices used in fiber-optic networks to combine (referred to as multiplex (“MUX”)) or separate (referred to as demultiplex (“DEMUX”)) multiple wavelengths of light traveling through optical fibers. By allowing many wavelength channels to share the same fiber without interfering with one another, AWG modules help significantly increase network capacity and efficiency. They are widely used in telecom networks, data centers, and other high-bandwidth communication systems. The AWG modules are wholly optical in nature. Accelink Technologies will produce two output channel configurations for its AWG modules: the 44-channel model (AAWG-3-F-44/44-C21-LU-12-05) and the 42-channel model (AAWG-3-F-42/42-C21-LU-12-05). The only distinction between these models is the number of output channels; the underlying design and manufacturing processes remain identical. The production of the AWGs modules begins in Denmark, where AWG wafers are fabricated using chemical vapor deposition (“CVD”) and photolithography, etching, diced into bar strips, and tested for quality using a dicing machine and ultrasonic machine, respectively. These bars are marked, packaged, and shipped for further processing. After these fabrication steps in Denmark, the AWG wafers are complete and need further processing to place them in the 2U rack. The components which account for 52 percent of the value for the wafer fabrication in Denmark have a country of origin of Denmark. Next, in China, the bars are diced into individual AWG module chips, capped with glass lids using precision alignment to avoid bubbles, and then pigtailed with fiber arrays under a strict wavelength tolerance ( ±5 pm). The modules are assembled and aged to ensure stability. The components used in the assembly process in China have a country of origin of China, Japan, Taiwan, United States, and Germany. The final assembly processes occur in Malaysia, where the modules undergo endface inspection, are integrated into a 2U rack, and checked for assembly defects such as glue integrity on screws and fiber clips. After passing all tests, the racks are packaged with protective casing foam, accessories, and labels, completing the process. The components used in the assembly and packaging process in Malaysia have a country of origin of China, United States and England. 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 subject AWG modules, model numbers “AAWG-3-F-44/44-C21-LU-12-05” and “AAWG-3-F-42/42-C21-LU-12-05,” it is the opinion of this office that the fabrication of the AWG wafers, which occurs in Denmark, imparts the character of the finished device. We do not believe the simple assembly process performed in China is significantly complex to render the components into a new and different article of commerce. Further we believe the mere assembly and testing in Malaysia are of relative insignificance as it relates to determining the character of the final product. As such, based on the facts presented, the origin of model numbers “AAWG-3-F-44/44-C21-LU-12-05” and “AAWG-3-F-42/42-C21-LU-12-05,” is Denmark. 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 Code of Federal Regulations (19 CFR 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 Michael Capanna at michael.s.capanna@cbp.dhs.gov. Sincerely, (for) James Forkan Designated Official Performing the Duties of the Division Director National Commodity Specialist Division