CLA-2 OT:RR:NC:N1:102
Tom Pifer
Electrolux Home Products, Inc.
10200 David Taylor Drive
Charlotte, NC 28262
RE: The country of origin of a drain pump
Dear Mr. Pifer:
In your letter dated February 1, 2022, you requested a ruling on the country of origin of a drain pump. A description of the assembly process was submitted for our review.
The product at issue is an electric drain pump used in dishwashing machines. The drain pump is an assembly that consists of a centrifugal pump and a motor. The rotational force of the pump’s impeller draws or pulls water from the bottom of a dishwasher.
In your request, two country of origin scenarios for the drain pump are presented. In both scenarios, the final assembly of the drain pump occurs in Vietnam from components or subassemblies that are either from China or Vietnam.
The production of each drain pump begins with the assembly of the rotor assembly. For scenario one, a portion of the rotor’s assembly occurs in China and in Vietnam. For scenario two, the complete assembly of the rotor assembly occurs in Vietnam.
To begin the rotor sub-assembly, a Chinese lower bearing, a Chinese lower bearing seat, and a Vietnamese shaft sealing are assembled to each other and the shaft of the Chinese impeller. Afterwards, grease is applied. A washer O-ring and a magnet are then assembled to the resulting subunit. Next a Chinese washer, a Chinese washer O-ring, a Chinese coupling, and a Chinese damping rubber are installed to complete the rotor subunit, also referred to as groupware.
Afterwards, a Vietnamese rotor housing and a Vietnamese cap are welded to each other, and the rotor subunit, or groupware, is then pressed into the rotor housing. A coupling and sealing are then assembled to the rotor assembly, grease is applied, and the impeller is then pressed on. In Vietnam, the Chinese upper bearing, Chinese upper bearing sealing and motor O-ring are assembled onto the rotor assembly. Amongst the aforementioned steps, the Vietnamese insulation cover is installed.
The stator subassembly is assembled in Vietnam. The Chinese-origin lamination stack and terminals are pressed-fitted onto the Vietnamese bobbin and the Chinese-origin thermal protector. The bobbin and lamination stacks are then wound together with wire using an automatic machine. Afterwards, the terminals are connected and soldered to the Chinese wire, which is followed by the Vietnamese insulation cover being snap-fitted to the wound lamination to form the stator subassembly.
In both scenarios, the final assembly of the drain pump occurs in Vietnam and involves fitting the completed stator and rotor assemblies together. Afterwards, a rubber O-ring is fitted onto the housing assembly of the joined assemblies to create a seal. Upon completion, each drain pump is labeled. It is noted that various tests and inspections are completed throughout the steps mentioned above.
With regard to your request for the appropriate country of origin of the drain pump, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means the 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. As stated in HQ 735009, dated July 30, 1993, “The country of origin is the country where the article last underwent a ‘substantial transformation’ that is, processing which results in a change in the article's name, character, or use.”
The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, and use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. 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 of various origins 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 operations that are minimal will generally not result in a substantial transformation.
In both scenarios, components from China and Vietnam are assembled to each other in China or Vietnam to form two subassemblies. The assembly processes primarily consist of components being joined to each other, e.g., bearings and washers onto the shaft, or the press-fitting of components to each other, e.g., impeller onto a shaft. The subassemblies are then fitted to each other and sealed in Vietnam during the final assembly process of the drain pump.
The presented country of origin scenarios are similar to the country of origin scenario discussed in HQ H303864, dated December 26, 2019, in which it was determined that the final assembly operations of a windshield washer pump are not complex and meaningful enough. Operations such as press-fitting the impeller onto other components is rather simple. Therefore, in determining the drain pump’s country of origin for both scenarios, the country of origin of the motor, which is the essence of the drain pump, is considered.
In considering the origin of the motor in both scenarios, we’re of the opinion that the Chinese shaft, magnet, bearing, etc., do not undergo a substantial transformation as a result of the assembly operations for the rotor subassembly. Furthermore, the Chinese lamination stack for the stator subassembly does not undergo a substantial transformation as a result of machine-pressing the bobbin and winding with wire. Consequently, the assembly work, as described, produces a rotor and stator subassembly of Chinese origin.
Based on the information provided, the assembly operations for the motor, in our opinion, are not complex and do not substantially transform the Chinese rotor and stator subassemblies as a result of the work performed in Vietnam. Both scenarios produce an electric motor of Chinese origin because neither the rotor nor the stator subassemblies were substantially transformed from the work conducted in Vietnam.
Therefore, the country of origin of the drain pumps for the purpose of applying 301 Trade Remedies will be China for both scenarios.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. Part 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.
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. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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