CLA-2-39:OT:RR:NC:N4:415
Ms. Lauren Wyszomierski
White & Case LLP
701 13th Street Northwest
Washington, DC 20005
RE: The country of origin of microwave trim kits from Thailand.
Dear Ms. Wyszomierski:
In your letter dated May 6, 2020, you requested a country of origin ruling on behalf of your client, Thai Toshiba Electric Industries Co., Ltd.
The microwave trim kits under consideration are designed to allow specific microwaves to be installed into a cabinet or wall by itself or over an electric wall oven. These kits consist of the front frame assembly, which are 27 inches or 30 inches wide, and the required hardware including the exhaust duct assembly, two bottom mounting rails, and the necessary screws. The front frame assembly will serve as the decorative border around the microwave face and will be the only component of the kit that will be visible once the installation is completed. The models within the series vary slightly because they are sold into different markets with different color schemes, different accessories, or slightly different features. However, the models all use the same platform, with a few parts that may vary between models in the series. It is also noted that per your submission, the model numbers may change in the future, but this would not affect how these kits are produced. Each unit is packaged for sale to individual consumers. The trim kits are not included with a microwave oven.
In your request, you state the trim kit frame is formed using injection molding, and then these frames have a decorative exterior applied using double-sided adhesive tape, both of these processes are completed in Thailand. The frame decoration is purchased from China. The exhaust duct assembly, two bottom mounting rails, and screws are also purchased from China. The final assembly and packaging of these kits are performed in Thailand.
Pursuant to Part 134, Customs Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 USC 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as: “[t]he 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.” A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation.
In your submission, you state the country of origin for these frame kits would be Thailand as that is where they undergo a substantial transformation and would then be considered microwave parts classifiable under subheading 8516.90.5000, Harmonized Tariff Schedule of the United States (HTSUS). We partially disagree with this assertion. The definition of “part” was first articulated by the United States Court of Customs and Patent Appeals (CCPA) and later adopted by the Court of International Trade (CIT). In United States v. Willoughby Camera, the CCPA stated that “…a ‘part’ of an article is something necessary to the completion of that article. It is an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article” 21 C.C.P.A., 322 (1933); Ludvig Svensson v. United States, 23 C.I.T. 573 (1999). These frame kits do not meet this definition and would not be considered a “part” of a microwave. This is further evidenced by the fact that a fully functioning microwave is sold separately from these kits. This would negate your argument that these products are substantially transformed into a part of a microwave and make classification within subheading 8516.90.5000, HTSUS, incorrect. This office is of the opinion that these kits would instead be considered sets for classification purposes, and the plastic injection-molded frame would be the component that provides the essential character to the set, General Rule of Interpretation 3(b) noted. As the front frame assemblies are wholly formed/manufactured in Thailand, the country of origin for the completed microwave trim kits would also be Thailand.
This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division