CLA-2 OT:RR:NC:N1:102

M Jason Cunningham
Sonnenberg & Cunningham PA
780 Fifth Ave South
Naples, Florida 34102

RE: The country of origin of a kitchen faucet

Dear Mr. Cunningham:

In your letter dated July 17, 2020, you requested a country of origin ruling on the behalf of your client, Delta Faucet Company. A description of the manufacturing and assembly processes was submitted for our review.

The item in question is referred to as a single handle kitchen faucet, model number B1310LF. The faucet is imported complete and ready to be installed into a kitchen sink countertop. The faucet primarily consists of a spout, an escutcheon base, a handle, copper tubing, an aerator and a valve cartridge that consists of a ball valve. The brass spout has a reach of 9.5 inches, a height measuring 8.37 inches, and is designed to complete a 360 degree swivel. The valve cartridge controls the flow of water and has a network of grooves and openings that allow varied temperatures of water to flow through.

In your letter, you explain that the assembly of the faucet occurs in Vietnam, and begins by joining a cartridge valve body that is manufactured in Vietnam using an injection molding process with Chinese origin copper tubes and fittings and O-rings, plastic clips, and a small plastic side body insert from Vietnam. The assembly process continues by screwing two Chinese adapter bolts into threaded holes near the ends and on the bottom of the Vietnamese escutcheon. The completed valve body assembly is then inserted into the escutcheon’s center opening and fastened into place with a water inlet shank. The next step consists of a Chinese plastic washer being placed on the top of the valve body and two sealing washers and a sealing spring from Taiwan being inserted into the water inlet holes of the valve body assembly. Lubricant is then applied to the inside of the base of the Chinese spout. Afterwards, the spout is placed onto the top of the valve body assembly. The Taiwanese stainless steel ball and required springs are then inserted into the valve body assembly and screwed into place. The Vietnamese origin faucet handle is then installed and screwed onto the Taiwanese ball stem. The completed faucet then undergoes pressure testing and afterwards, a Chinese aerator-housing and German aerator are screwed onto the end of the spout.

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 C.I.T. 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 the aforementioned scenario concerning the kitchen faucet, the operations performed in China, Taiwan, and Germany are not complex or meaningful enough. It is the manufacturing of the valve body and the assembly processes in Vietnam, in which less significant components that are not from Vietnam are combined with the Vietnamese valve body, resulting in the individual parts losing their separate identities to become a new article, i.e., a kitchen faucet. As such, the country of origin for the single handle kitchen faucet, model number B1310LF, will be Vietnam. Accordingly, the subject article will not be subject to the Section 301 remedy.

This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Sandra Martinez at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division