MAR-2 OT: RR: NC: N4:410
Ms. Lauren Wyszomierski
White & Case LLP
701 13th Street NW, Suite 600
Washington, DC 20005
RE: The country of origin of vacuum cleaners
Dear Ms. Wyszomierski:
This is in response to your letter dated September 3, 2021, on behalf of your client Midea America Corporation, requesting a country of origin determination for vacuum cleaners.
The merchandise under consideration is vacuum cleaners identified as the NEN110 Series, which are canister vacuum cleaners designed for household use. The vacuum’s power is 1,200W, and its dust cup capacity is 1.2L. Each unit is sold in a single package together with its corresponding accessories. It is stated that 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 might vary between models in the series.
You present a manufacturing processing scenario for the country of origin determination of the vacuum cleaners. Under the scenario, for the single production scenario at issue, there are roughly over 65 components and sub-assemblies used in the NEN110 Series. Parts and components are sourced from both China and Vietnam. Approximate 29% (by unit cost) of the materials used to produce the NEN110 Series vacuums are sourced from Vietnam. Parts and components manufactured in Vietnam include dust cup, cyclone tray, outer cyclone, bottom dusk cup lid, dust cup cover, dust cup assembly, vacuum body part, air inlet station, middle frame, motor cover, instruction manual, packaging and packing materials, etc. The parts and components imported from China are cord rewinder, inner cyclone, dust cup handle cover, hose assembly, exhaust grill, universal wheels, motor assembly, inner motor cover, motor sealing ring, metal tube, wiring, switches, etc.
The production process in Vietnam is described as follows:
Processes in the proposed production scenario occurs at Midea’s facilities in Vietnam. The workers involved in the production of the vacuums in Vietnam include electricians, product engineers, test engineers and individuals specially trained to ensure the product’s quality and specifications.
For each NEN110 Series model, the components sourced from both China and Vietnam are sent to the main assembly line for production of the finished vacuum pursuant to the following process. As shown below in details, this process consists of approximately 29 distinct steps. A different worker carries out each step listed below.
Unpack middle body.
Unpack film. By hand, remove the packaging from the middle frame.
Inspection. Visually inspect the middle frame for scratches, gaps, and other defects.
Assemble decorative board.
Unpack the decorative board. By hand, remove the packaging from the decorative board.
Install decorative panels. Using both hands, install the decorative panels on the middle frame.
Assemble nozzle cover. By hand, install the suction mouthpiece on the middle frame.
Affix safety valve cover.
Affix safety valve. By hand, install the safety valve on the valve cover. Make sure there is no gap between the safety valve and the air inlet hood.
Affix safety valve cover. By hand, install the safety valve on the middle frame. Then, using a 4*18 screw and a pneumatic screwdriver, affix the safety valve cover.
Place on suspension chain. By hand, place the middle frame with the air inlet hood installed on the suspension chain.
Motor pre-loading.
Unpack motor. Visually inspect the motor. Make sure the nameplate meets the requirements.
Assemble holder. By hand, install a pressure seat in the reserved hole on the motor.
Clamping piece. By hand, install one clip on the motor with the small end facing up, and the big end facing down.
Assemble sponge. By hand, install muffler cotton on the motor.
Plug-in terminal. By hand, install the thermostat on the clip on the motor. Make sure the convex side faces inward, and the flat size faces outward. Plug in the two blue wire harnesses into the motor terminals.
Motor placement.
Install the motor seal. By hand, install sealing ring on the motor.
Motor placement. By hand, install the motor in the motor cover.
Install the motor cover. By hand, install the inner motor cover on the upper part of the motor.
Affix motor cover.
Place motor. By hand, place the assembled motor on the positioning fixture.
Affix motor cover. Using three 4*18 screws and a pneumatic screwdriver, affix the upper motor cover.
Place on suspension chain. By hand, place the motor assembly on the suspension chain.
Assemble body.
Unpack body. By hand, place body on the work table. Visually inspect the body for any defects.
Install universal wheel. By hand, install the universal wheel on the body.
Place on hanging basket. By hand, place the body assembly on the hanging basket.
Place dust cup on suspension chain. By hand, remove dust cup from the cloth bag. Place the dust cup on the suspension chain.
Assemble motor cover seal.
Place rating label. By hand, tear off nameplate sticker and place sticker in the nameplate groove.
Place motor cover. By hand, install the motor cover assembly on the body.
Install the motor cover seal. By hand, install motor cover sealing ring on the upper part of the motor cover.
Affix Printed Circuit Board (“PCB”).
Install the plug. By hand, plug the two blue wire harnesses into the slot.
Affix PCB. Using a 3*12 cushioned screw and a pneumatic screwdriver, affix the PCB. By hand, route the white wire into the card slot.
Assemble cord rewinder.
Pre-assemble cord rewinder. By hand, plug the wire into the reel. Under normal circumstances, pre-wind the flat wire 3-4 times, and pre-wind the round wire 4-5 times. In special cases, this may be increased or decreased according to requirements.
Plug in terminal. By hand, insert red and blue terminals into the reel.
Assemble cord rewinder. By hand, install the reel on the body, and plug the white wire into the card slot.
Pull test. By hand, pull out the cord reel 20 cm to test the cord.
Install switch patch cord.
Install switch patch cord. By hand, insert the red wire into the switch.
Assemble switch. By hand, install the switch in place. Insert the two red wires into the card slot.
Assembly middle body.
Assemble nozzle holder. By hand, install nozzle holder on the body.
Close the frame. By hand, pass the power cord through the middle frame, and then close the middle frame.
Install outlet window. By hand, pass the power cord through the outlet window. Install the outlet window in place.
Assemble body cover. By hand, install the base sealing ring on the body.
Affix middle frame.
Place the machine on the work table. Visually inspect for any defects.
Affix middle frame. Using 6 4*18 screws and a pneumatic screwdriver, affix the middle frame.
Place on assembly line. By hand, place the machine on the assembly line, reverse side up.
Install wheels.
Assemble HEPA filter. By hand, install the HEPA filter into the body, and place the air outlet plate into the slot on the body.
Install wheels. By hand, install the big wheels onto the body.
Shaking inspection. Using both hands, shake the whole machine and make sure there is no foreign matter in the machine.
Install switch cord rewind.
Install spring. By hand, install a spring on both sides of the middle frame.
Install switch cord rewind. By hand, install the switch button. Then, install the cord rewind by hand.
Pack accessories (1).
Fold paper tube. By hand, fold one paper tube into the proper shape.
Place paper tube. Insert the metal tube into the paper tube. Then, place in box.
Insert hose. By hand, insert the end of the hose with the risk control button into the side of the machine.
Voltage test (1).
Install cotton. By hand, install cotton into the suction port of the middle frame. Then, place the dust cup on the assembly line.
Paste dust cup label. By hand, paste label on the dust cup.
Pressure-resistance test. Insert the power plug into the socket, then turn on the withstand voltage switch. Touch the switch button with the withstand voltage test metal rod. Test for one second.
Voltage test (2).
Paste power cord label. By hand, paste the label on the power cord.
Pressure-resistance test. Insert power plug into the socket, then turn on the withstand voltage switch. Touch the switch button with the withstand voltage test metal rod. Test for one second.
Performance test. By hand, place the dust cup back in the machine. Then, insert the hose connector into the suction socket, and insert the plug into the test socket. Turn on the switch button. When the power is on, pull the wire to confirm that the wire is connected and working properly. Read the display screen of the tester and confirm that all green lights are on, indicating that the product is qualified. Isolate any defective products.
Appearance inspection. Visually inspect the appearance of the machine. Make sure the wheels rotate, that there are no loose wires, and that there are no missing labels, scratches, dirt, or other defects on the machine.
Seal bottom of box.
Seal bottom. Place box on the box opening machine, and seal the bottom of the box.
Place bottom liner. By hand, fold the bottom liner and place into the bottom of the box.
Place front liner. By hand, fold and place front liner in the box.
Pack the machine.
Paste rating label. By hand, paste the rating label in the designated position on the machine.
Place the machine. By hand, place the machine in the box.
Pack accessories (2).
Pack dust cup. Place dust cup in the dust cup liner, and then pack in the front lining of the box.
Pack small accessories. Pack the combination brush and instruction manual in the box.
Pack floor nozzle. Pack the floor nozzle in the box in front of the dust cup.
Coil hose.
Place glass. By hand, place small glass over the top of the tube.
Coil hose. By hand, coil the hose over the machine counter-clockwise.
Place top lining.
Inspection. Inspect contents of the box and make sure all accessories are packed.
Place top lining. By hand, place top liner in the box.
Paste MES. Paste MES label on box.
Seal box.
By hand, close box, and then push box into box sealing machine.
Stamp the date code on the box.
Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)), defines "country of origin" as 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”.
In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative.
Based on the information submitted, the components and parts are imported into Vietnam where they are manufactured into different subassemblies, which are ultimately assembled into the subject vacuum cleaners. We find that the processing performed in Vietnam with respect to the vacuum cleaners in the scenario does constitute a substantial transformation of the imported components and parts into "products of" Vietnam. The manufacturing process in Vietnam transforms the non-originating components and parts to produce the finished vacuum cleaners. It creates a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Vietnam. Therefore, the "product of" requirement has been satisfied. It is of the opinion of this office that the country of origin for the vacuum cleaners will be Vietnam.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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. If you have any questions regarding the ruling, contact National Import Specialist Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division