H337124

 HQ H337124 April 11, 2024 OT:RR:CTF:VS H337124 RRB CATEGORY: Origin Steven B. Zisser, Esq. Zisser Customs Law Group 9355 Airway Rd. San Diego, CA 92154 RE: Country of Origin of an Arc-Fault Circuit Interrupter (AFCI)/Ground-Fault Circuit Interrupter (GFCI) Circuit Breaker Dear Mr. Zisser: This is in response to your letter, dated December 21, 2023, requesting a prospective ruling on behalf of Hongfa America, Inc. (“Hongfa”), regarding the country of origin of a dual function Arc-Fault Circuit Interrupter (AFCI)/Ground-Fault Circuit Interrupter (GFCI) Circuit Breaker (“AFCI/GFCI Circuit Breaker”) produced under two different production scenarios. Your request, originally submitted as an electronic ruling request to the National Commodity Specialist Division, was forwarded to this office for review. FACTS: The subject merchandise is a dual function AFCI/GFCI Circuit Breaker that protects an electrical circuit against overcurrent, arc, and ground fault conditions by tripping or interrupting the flow of current. You state that this type of circuit breaker is specially designed to protect electrical currents by detecting and tripping the flow of current whenever there is an imbalance of electrical current or an abnormal arcing condition. The AFCI/GFCI Breaker consists of six main elements: The plastic molded housing from China protects the circuit breaker’s internal parts from outside materials. The operating mechanism from China provides a means of opening and closing the circuit breaker with a switch. The contacts from China allow the current to flow through the circuit breaker when closed. The contacts also provide the line side connection of the circuit breaker. This element includes terminals that provide electrical connection to the circuit breaker and a wire harness that provides power to the board. The arc extinguisher, which consists of arc chute components from Malaysia, protects and safely extinguishes an arc when the circuit breaker interrupts a fault, and minimizes damage to the contacts. The trip unit opens the operating mechanism in the event of a prolonged overload or short circuit. It consists of three subcomponents—the thermal bimetal strip, the magnetic current coil and the adjusting screw. The bimetal strip provides the circuit breaker’s tripping mechanism and protects the circuit from excess current. When heated, the bimetal strip interrupts the circuit and is reset once cooled down. The magnetic current coil is used when large current associated with short circuits are present. The large current will induce a magnetic field in the current coil, driving a plunger forward and tripping the breaker. The adjusting screw allows for adjusting the trip current of the device. All of the trip unit components are from Malaysia. The AFCI/GFCI component processes multiple signals to decide on an arc/ground fault. It consists of three subcomponents—the AFCI/GFCI printed circuit board assembly (“PCBA”), transformer pack, and metal oxide varistor. The PCBA subcomponent processes multiple signals to decide on an arc/ground fault. Under Scenario One, all three subcomponents—the PCBA, the transformer pack and the metal oxide varistor—are from China. Under Scenario Two, the PCBA is from Malaysia while the transformer pack and metal varistor are from China. In your submission, you explain that while all of the components work in sync with one another, it is the trip unit, consisting of the thermal bimetal strip and magnetic current coil, that provides the main functionality of the AFCI/GFCI Circuit Breaker because it protects the circuit by tripping or interrupting the flow of current and is responsible for opening the contacts in the event of a fault condition such as an overcurrent or short circuit. You provide two scenarios for producing the dual function AFCI/GFCI Circuit Breaker. In Scenario One, you state that the trip unit—namely, the bimetal strip, the current coil, the adjusting screws—and the arc chute components are each manufactured in Malaysia and then shipped to China for final assembly of the AFCI/GFCI Circuit Breaker with the other components. You also state that the PCBA, which consists of numerous electrical components soldered onto a bare printed circuit board, along with the various contacts, terminals, plastic housing, and operating mechanism, are manufactured in China. The AFCI/GFCI Circuit Breaker is then assembled in China by inserting the Malaysian origin trip unit, Malaysian origin arc chute, Chinese origin electrical contacts and Chinese origin operating mechanism into the Chinese origin plastic housing unit. As with Scenario One, you state that under Scenario Two, the trip unit—namely, the bimetal strip, the current coil, the adjusting screws—and the arc chute components are each manufactured in Malaysia and then shipped to China for final assembly of the AFCI/GFCI Circuit Breaker with the other components. Unlike in Scenario One, however, the PCBA in Scenario Two is manufactured in Malaysia, and is shipped to China where final assembly takes place. You also state that the various contacts, terminals, plastic housing, and operating mechanism are manufactured in China. The AFCI/GFCI Circuit Breaker is then assembled in China by inserting the Malaysian origin trip unit, Malaysian origin arc chutes, Chinese origin electrical contacts and Chinese origin operating mechanism into the Chinese origin plastic housing unit. ISSUE: Under each production scenario, what is the country of origin of the AFCI/GFCI Circuit Breaker? LAW & ANALYSIS: 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 container) will permit in such a manner as to indicate to an 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 markings on the imported goods the country of which the good 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.” United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940). Part 134, Customs and Border Protection (CBP) Regulations (19 C.F.R. 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 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 regulations]. . . .” A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use which differs from the original material subjected to the process. United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940); Texas Instruments v. United States, 681 F.2d 778, 782 (1982). In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. If the manufacturing or combining process is a minor one which leaves the identity of the article intac

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 container) will permit in such a manner as to indicate to an 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 markings on the imported goods the country of which the good 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.” United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940).Part 134, Customs and Border Protection (CBP) Regulations (19 C.F.R. 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 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 regulations]. . . .” A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use which differs from the original material subjected to the process. United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940); Texas Instruments v. United States, 681 F.2d 778, 782 (1982). In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed produ