CLA-2-85:OT:RR:NC:N4:415
Ms. Allison Kepkay
White & Case LLP
701 13th Street Northwest
Washington, DC 20005
RE: The country of origin of two toaster ovens from Thailand.
Dear Ms. Kepkay:
In your letter dated November 26, 2020, you requested a country of origin ruling on behalf of your client, Thai Toshiba Electric Industries Co., Ltd.
The toaster ovens under consideration are listed in your submission as models AC25CSV-L00ZA and AC25CZL-R00ZA. They are 25 liter capacity, 1750 watt (AC25CSV-R00ZA) and 1700 watt (AC25CZL-L00ZA), multifunction, convection countertop ovens which are designed for household use. Each unit is packaged for sale to individual consumers, together with its corresponding accessories. Depending on the model within the series, packaged accessories may include a user manual, crumb tray, grill tray, baking rack, fry basket, rack clamp, rotisserie kit, and rotisserie fork. 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 only one or two parts that may vary between models in the series.
In your request, you indicated that these toaster ovens would be assembled in Thailand from components sourced from China and Thailand. From the provided documentation, the bulk of the parts to construct the toaster ovens would be from China. The back bottom plate, u-plate, crumb tray, grill tray, upper and lower cushion (foam packaging), and the printed circuit board (PCB) assemblies (Power and Display) would be manufactured in Thailand. The manufacturing process for these metal parts includes stamping, bending, and degreasing of the metal to form the finished components. Many of the Chinese parts would be used to form subassemblies in Thailand, which would later be assembled into the respective toaster oven. To complete the manufacturing of the toaster ovens, spot-welding machines, rivet guns, and manual screwdrivers would be utilized.
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.
This office reviewed the provided assembly process flow charts and is of the opinion that these Chinese parts underwent enough of a change to afterwards emerge with a new name, character, and use that is different from what they possessed prior to processing, thus completing a substantial transformation. In addition, essential parts of the toaster ovens’ housing were manufactured in Thailand. Further, we agree that the conditions submitted for these toaster ovens are nearly identical to the two rulings already issued to your client, see NY N308032, dated December 27,
2019, and NY N313199, dated July 31, 2020. Thus, the country of origin for these toaster ovens 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