OT:RR:NC:N1:105
Andrew Hall
Central Purchasing, LLC
26677 Agoura Road
Calabasas, California 91302
RE: The country of origin of Pressure Washers
Dear Mr. Hall:
In your letter dated September 7, 2021, you requested a country-of-origin ruling.
The product under consideration is a portable corded electric pressure washer, model number 56877. It has an electric motor that drives a pump, which forces water through the hose and wand, delivering 2000 pounds per square inch (PSI) output. The device utilizes a ground-fault circuit interrupter (GFCI) power cord and sits on two wheels for portability. Additional features include a detergent tank, built-in hose reel, high-pressure hose, spray gun, metal spray wand, and quick-connect couplers. In operation, the pressure washer utilizes the motor to power the pump to force water through a hose and nozzle to attain high-pressure projection to clean various surfaces.
In regard to the country of origin the pressure washers are made with eighty-one percent of the materials coming from China and nineteen percent coming from Vietnam. The Chinese components include the complete pump assembly and all the components necessary to create the motor (including the Chinese stator and rotor core). The Vietnamese components include the handle, frame, housing, and packaging. The Chinese components are all shipped from China to Vietnam for assembly into the finished pressure washer.
The Chinese pump manufacturing includes installing the check valve assembly, installing the venturi tube, assembling the sleeve assembly, installing the water relief valve, and pressing the relief valve assembly and oil seal. Further manufacturing includes installing the suction connector assembly, installing the plunger assembly, assembling the pump cover and pump body, and installing the microswitch. A finished pump is sent to Vietnam for assembly into the pressure washer.
The rotor and stator are both of Chinese origin but require several simple assembly steps in Vietnam for incorporation into the motor. The rotor assembly steps include pressing the shaft, plate, and commutator, inserting insulating paper, wire wrapping and welding. The next steps include adding a coating of glue, painting, a pressing guide wheel is added and finish turning. Finally, the balance weight reduction is completed prior to final inspection. The stator assembly requires inserting the insulating paper, winding the wire, taping, painting, cutting the lead, and reducing the patent leather. The next steps are the tube cutting, cutting, and stripping the wire before installation of the terminals. Finally, the technician will install the copper strips, colligation upper end winding, cut the cable tie and check the stator for any defects.
The motor is assembled in Vietnam by incorporating the Chinese stator and motor core, pressing the insulation, pressing the bearing onto the rotor, pressing the pinion, pressing the lower bracket, installing carbon brush and wire, pressing the fan, installing the circlip, installing the air hood, sticking on a name plate, burn-in and final testing.
Finally in Vietnam, the motor, Chinese pump, and additional Chinese components such as the detergent tank, built-in hose reel, high-pressure hose, spray gun, metal spray wand, GFCI cord and quick-connect couplers are added to make the final pressure washer. Once fully assembled in Vietnam, the product is packaged for final sale.
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 U.S. 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 the ultimate purchaser in the U.S. 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 marking on the imported goods the country of which the goods 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 at 302 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. 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 case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character, or use differing from that of the constituent article will be considered substantially transformed.
Further, in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade (“CIT”) interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted that “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an example, National Hand Tool Corp. v. United States, 16 C.I.T. 308, 310, aff’d 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, the courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article.
In this instance, eighty-one percent of the parts come from China including the fully assembled pump. The motor is assembled in Vietnam from Chinese parts including the stator and rotor core. Both the stator and rotor core are Chinese components essential for the motor to operate. We find the essence of the finished pressure washer is the ability of the motor and pump to pressurize the water so that it can provide a high-powered jet for cleaning. Without it, the primary function is lost. Further, the essence of the motor is provided by the Chinese stator and motor core, which are incorporated into the motor with simple assembly. We find the key components necessary for the pressure washer to perform its function when leaving China are not substantially transformed. Much of the manufacturing in Vietnam would be considered simple assembly (pressing, screwing, painting etc.) and do not change the essence of the pump, stator, or motor core.
It is this office’s opinion that the Chines pump, stator, and motor core create the essence of the pressure washer. The additional manufacturing and assembly in Vietnam are considered simple assembly and does not change the intentions of the Chinese components. In our view, the simple assembly performed in Vietnam does not substantially transform the pump and motor (and therefore the pressure washer) into a new and different product having a new function and purpose. In view of these facts, the country of origin is China.
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 Jason Christie at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division