CLA-2-85:OT:RR:NC:N4:415
Stacy J. Ettinger
K&L Gates, LLP
1601 K Street Northwest
Washington, DC 20006
RE: The country of origin of space heaters from Vietnam.
Dear Ms. Ettinger:
In your letter dated September 6, 2023, you requested a country of origin ruling on behalf of your client, Midea Consumer Electric (Viet Nam) Co., Ltd.
The product under consideration is an infrared, 1500-watt electric quartz radiant space heater. These heaters are produced in two different colors, black, current customer model number PSH20Q3ABB, and white, current customer model number PSH20Q3AWW. Your submission indicates that they operate by use of radiant heating elements enclosed in quartz tubes and will contain three of these heating elements. Further, it would be considered a household heater and will be individually packaged for sale to consumers.
The heaters are completed in Vietnam through a four-step process. In the first and second step, key components are manufactured from raw materials in Vietnam and China. In Vietnam, the plastic front and rear covers, as well as the heater’s panel, are produced by an injection molding process. The metal front cover mesh and handle are stamped and further worked in Vietnam from raw steel of Chinese origin. Next, the reflection board assembly is manufactured in Vietnam from combining the two Chinese-stamped side panels with the body made from Chinese 430 stainless-steel that undergoes various stamping, forming, and welding processes in Vietnam. You indicate that the reflection board assembly is an important subassembly as it reflects heat to direct the flow of the heat produced by the Vietnamese heating elements and enhances them by making the radiant heater more efficient. It also prevents the unit from overheating through its insulating ability. Finally, the subassemblies and body are sent for final assembly, testing, and packaging in Vietnam.
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 the Chinese components 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, the heating elements, which are essential parts, are from Vietnam. Therefore, from the details submitted, we agree that the country of origin for these radiant space heaters would be Vietnam.
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 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