H332752

HQ H332752 June 10, 2024 OT:RR:CTF:VS H332752 AMW CATEGORY: Origin Ms. Angelica Tsakiridis Managing Director—Global Trade Advisory Deloitte LLP 555 Mission Street, Suite 1400 San Francisco, CA 94105 RE: U.S. Government Procurement; Title III, Trade Agreements Act of 1979 (19 U.S.C. 2511); Subpart B, Part 177, CBP Regulations; Country of Origin of UPanelS Products Dear Ms. Tsakiridis: This is in response to your request, dated September 8, 2021, on behalf of your client, Unilumin USA LLC (“Unilumin”), for a final determination concerning the country of origin of the “UPanelS” product line of light-emitting diode (“LED”) display panels, pursuant to Title III of the Trade Agreements Act of 1979 (“TAA”), as amended (19 U.S.C. 2511 et seq.), and subpart B of Part 177, U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 177.21, et seq.). Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division. Unilumin is a party-at-interest within the meaning of 19 CFR 177.22(d)(1) and 177.23(a) and is therefore entitled to request this final determination. FACTS: Unilumin imports various models of “high-performance [LED] display[s]” sold under the UPanelS product line. The UPanelS product line consists of a series of display units capable of producing high-definition video or photographic images differentiated primarily by pixel pitch. The UPanelS devices are used in commercial and educational settings as signage or digital displays, including in large format settings such as concert backdrops or film sets. UPanelS devices are capable of being affixed directly into a wall mount, displayed free standing, or hung with hanging beams. Each UPanelS consists of two major sub-assemblies: a “module board” and a “cabinet housing.” The module board drives and controls each LED unit, forming images for display. The cabinet encases the device and provides the power supply function. The module board is assembled in Taiwan and is comprised of two subassemblies that are also assembled in Taiwan: (1) the main printed circuit board assembly (“PCBA”) with LED lamps; and (2) the HUB board and receiver card. The main PCBA with LED lamps consists of the main PCBA, which regulates the flow of power to the LED lamps; and the LED lamps (originating in Taiwan), which light to form viewable images. The HUB board and receiver cards assembly consists of the HUB board, a separate PCBA printed in China that relays information between the receiver card and module board; a receiver card (originating in either Taiwan or Romania), which reads programmed command signals regulating the brightness and color of the LEDs and sequencing the display; and the indicator light board (originating in Taiwan), which displays power supply indicators to the LED lamps. Assembly of the main PCBA with LED lamps occurs in Taiwan over approximately 12 steps, which involve the creation of the PCBA via surface mount technology (“SMT”) and the placement of LED lamps onto the non-printed side of the PCBA: Mount handling fixture to the integrated circuit (“IC”) side of a Chinese-origin bare printed circuit board (“PCB”); Print components onto the PCB; Inspect solder paste; Mount remaining miscellaneous components onto PCB; Cure the board in reflow oven; Remove fixture(s) mounted to the IC side of the PCB in step one and mount a fixture to the LED side; Print onto the reverse side of the PCB; Inspect solder paste; Mount components; Cure the board in a reflow oven; Apply conformal coating on PCB; Install gasket onto PCB. Next, assembly of the HUB board and receiver card occurs in the following steps: Paste installation stickers to a lower/bottom shell (the “turtle shell”) and blacken the bottom with a pen; Insert the receiver card into the HUB board and place the HUB board into the bottom of the turtle shell; Divide the indicator light board into several smaller boards, affix the indicator lights, and connect them with the module board adapter; Paste and scan serial number; and Install the HUB board assembly on the turtle shell and check for flatness and gaps. The fully assembled PCBA with LED lamps is then combined with the HUB board and receiver card assembly to form the completed module board. Once combined, the LED lamps can light and display video or photographic images. The cabinet is the second major subassembly of the completed UPanelS. The cabinet houses the module board and provides the power supply to the finished device. The cabinet also enables the combination of multiple module boards to create larger-format arrays (e.g., 4x4 or 2x1 configurations). The cabinet is comprised almost entirely of Chinese-origin components, and contains the following sub-assemblies: power supply adapter board, power supply, motor assembly, power signal combination connector, and wall controller. The cabinet is assembled in Taiwan in approximately six steps: Affix the power cables to the cabinet; Affix the lacing strip, three core cables, and ground cables to the cabinet; Affix the adapter board to the cabinet; Assemble left and right-side motor and assemble cables with electric screwdriver; Connect internet cables to the power supply adapter board; and Fit the insulating gasket on the power supply cover and affix the power supply cover. Once the module board and cabinet are completed, they are shipped to China where they are combined into a complete UPanelS unit and tested for functionality. Afterwards, the UPanelS is disassembled and separately packaged for shipment to the United States. Each UPanelS will be imported into the United States in one of two ways: (1) the UPanelS’s finished module board and cabinet are imported as two separately packaged, unique product numbers entered in the same shipment; or (2) the module board and cabinet are entered in the same shipment as separately packaged products along with a separate “wall controller unit.” You state that the UpanelS is imported in an unassembled condition because the finished module board and cabinet are delicate and that shipping the components in a single box may damage the panels. To aid installation in the United States, each module board or cabinet will be assigned a serial number or code allowing for the recombination of each module board with its corresponding cabinet. ISSUE: What is the country of origin of the Unilumin UPanelS for purposes of U.S. Government procurement? LAW AND ANALYSIS: CBP issues country of origin advisory rulings and final determinations as to whether an article is or would be a product of a designated country or instrumentality for the purposes of granting waivers of certain “Buy American” restrictions in U.S. law or practice for products offered for sale to the U.S. Government, pursuant to subpart B of Part 177, 19 CFR 177.21-177.31, which implements Title III of the TAA, as amended (19 U.S.C. 2511-2518). CBP’s authority to issue advisory rulings and final determinations is set forth in 19 U.S.C. 2515(b)(1), which states: For the purposes of this subchapter, the Secretary of the Treasury shall provide for the prompt issuance of advisory rulings and final determinations on whether, under section 2518(4)(B) of this title, an article is or would be a product of a foreign country or instrumentality designated pursuant to section 2511(b) of this title. Emphasis added. The Secretary of the Treasury’s authority mentioned above, along with other customs revenue functions, are delegated to CBP in the Appendix to 19 CFR Part 0 - Treasury Department Order No. 100-16, 68 Fed. Reg. 28,322 (May 23, 2003). The rule of origin set forth under 19 U.S.C. 2518(4)(B) states: An article is a product of a country or instrumentality only if (i) it is wholly the growth, product, or manufacture of that country or instrumentality, or (ii) in the case of an article which consists in whole or in part of materials from another country or instrumentality, it has been substantially transf

CBP issues country of origin advisory rulings and final determinations as to whether an article is or would be a product of a designated country or instrumentality for the purposes of granting waivers of certain “Buy American” restrictions in U.S. law or practice for products offered for sale to the U.S. Government, pursuant to subpart B of Part 177, 19 CFR 177.21-177.31, which implements Title III of the TAA, as amended (19 U.S.C. 2511-2518).CBP’s authority to issue advisory rulings and final determinations is set forth in 19 U.S.C. 2515(b)(1), which states:For the purposes of this subchapter, the Secretary of the Treasury shall provide for the prompt issuance of advisory rulings and final determinations on whether, under section 2518(4)(B) of this title, an article is or would be a product of a foreign country or instrumentality designated pursuant to section 2511(b) of this title.Emphasis added. The Secretary of the Treasury’s authority mentioned above, along with other customs revenue functions, are delegated to CBP in the Appendix to 19 CFR Part 0 - Treasury Department Order No. 100-16, 68 Fed. Reg. 28,322 (May 23, 2003).The rule of origin set forth under 19 U.S.C. 2518(4)(B) states:An article is a product of a country or instrumentality only if (i) it is wholly the growth, product, or manufacture of that country or instrumentality, or (ii) in the case of an article which consists in whole or in part of materials from another country or instrumentality, it has been substantially transformed into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was so transformed.See also 19 CFR 177.22(a). In rendering advisory rulings and final determinations for purposes of U.S. Government procurement, CBP applies the provisions of subpart B of Part 177 consistent with the Federal Procurement Regulation (“FAR”). See 19 CFR 177.21. In this regard, CBP recognizes that the FAR restricts the U.S. Gov