OT:RR:NC:N1:105
David Newman Attorney-at-Law 45 Village Gate Way Nyack, NY 10960
RE: The country of origin of dog trackers
Dear Mr. Newman:
In your letter dated April 11, 2024, on behalf of your client, Tractive Inc., you requested a country of origin ruling on dog trackers.
The items under consideration are described as GPS trackers for dogs. There are two versions of the trackers including the TG4422 standard dog tracker (available in white, brown, and dark blue) and the TG4XL, which is a larger version of the standard dog tracker containing a longer battery life. The TG4XL will have two versions, one will come in green and the other will have a more rugged case. The trackers have a GPS receiver, cellular radio device, Bluetooth radio, Wi-Fi radio, and an accelerometer which provide a wide range of information about their canine wearers. This includes GPS location tracking in real time, health alerts, and activity monitoring (e.g., sleep tracking). The information is relayed from the tracker to a mobile device running a special app. The devices are imported as a retail set with a charger (or charging cable in the case of the large tracker) and plastic clips to mount the tracker on a dog collar.
The trackers will be produced in Vietnam from over eighty electronic and thirty-one mechanical components. The electronic components will be used to manufacture the printed circuit board assembly (PCBA) and will be sourced from a variety of countries. The antenna, serial flash, and 2G modules are produced in Taiwan. The microcontroller, accelerometer, and charger are produced in the Philippines. The switch, coaxial connectors and transistors are produced in Malaysia. The GPS module, voltage regulator and many of the capacitors and inductors are produced in Japan. Multiple small electronic components such as the contact plates, diodes, and switches are made in China along with all of the mechanical components including the battery, buzzer, housing, screws, magnets, springs, and packaging. Both the TG4422 and TG4XL will be manufactured in a substantially similar way. The TG4XL will also contain an integrated charger/cable and will have slightly different packaging. Additionally, there are six different electronic parts that perform the same functions but are designed for the slightly different circuitry of the larger version.
In Vietnam, the printed circuit board assembly (PCBA) is manufactured using surface mount technology (SMT) and hand gluing and soldering of the electronic components. The flashing of Austrian origin firmware is then added onto the multiple integrated circuit chipsets. Next is the creation of subassemblies such as the flexible GSM (cellular) antenna, button assembly, and charging pin. This is followed by the assembly of the remaining parts onto the PCBA and assembly of the PCBA into the tracker case. Finally, all of the trackers are tested to ensure proper operation. The separate charger assembly from China (PCBA) is connected to the USB cable in Vietnam and then assembled into its case. The China origin plastic clip and charger will be packaged with the Tracker after the completion of testing.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article.
The country of origin is defined in 19 CFR 134.1(b) 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 this part. 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, 69 C.C.P.A. 151 (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).
In regard to the country of origin of the trackers, it is our opinion that the assembly process performed in Vietnam is considered complex and results in a substantial transformation. The manufacturing involves an assembly process of over a hundred different parts that do not have the ability to perform as a tracker prior to their manufacturing process. The SMT and manual assembly process takes many of the individual components and generates a working PCBA capable of tracking the pets, providing health information, and connecting to a Wi-Fi enabled device. It is our opinion that this is a new and different article of commerce with a name, character, and use distinct from the individual components. Accordingly, the country of origin of the trackers (both the TG4422 and the TG4XL) for marking purposes will be Vietnam, which is where the articles are manufactured.
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 Jason Christie at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division