OT:RR:NC:N4:410
Yiqin Weng
Damco China Ltd.
26F, 757 Mengzi Road
Huangpu District, Shanghai China
RE: The country of origin of gas grills and a pizza oven
Dear Mr. Weng:
This is in response to your letter dated July 9, 2024, on behalf of your client RevoAce Inc. Limited, requesting a country of origin determination of two gas grills and a pizza oven. The products at issue are identified as the EG 1B Portable Gas Grill, EG 2B Tailgate Portable Gas Grill, and EG Portable Gas Pizza Oven. The EG 1B Portable Gas Grill consists of a burner, regulator (including hose, values, and gas components), flame tamer and support, heat shield, primary cooking grid/plate, lids (top/side), lid material and gauge, a fire bow, cart leg, and handle.
The EG 2B Tailgate Portable Gas Grill consists of two burners, a regulator (including values), and gas components, control knobs, a control panel, primary cooking grid/plate, lids (top/side), a fire bowl, side shelf, cart leg, wheels, and a thermometer.
The EG Portable Gas Pizza Oven consists of a burner, values, regulator and hose, control knobs, a cordierite cooking plate, oven lids and a fire bowl, cart frame and legs, and a thermometer.
Your submission presents a manufacturing scenario for the production of the gas grills and the pizza oven. In the production of the gas grills, all of the components are made in Vietnam except for the burners, which are made in China. The factory in Vietnam assembles the Vietnamese origin components with the Chinese origin burners to manufacture the finished gas grills, which includes the production of certain key sub-assemblies and the final assembly process. The manufacturing process comprises casting, bending and stamping brass and aluminum into the right shapes of the metal components, welding, and plastic mold injection process to make the plastic components. The Bills of Materials indicate that the Vietnamese components/materials and processing cost account for approximately 92 percent and 93 percent of the FOB cost of the finished products for the EG 1B Portable Gas Grill and the EX 2B Tailgate Portable Gas Grill, respectively.
Similarly, in the production of the pizza oven, the factory in Vietnam will have the burner, the regulator and hose, and the cordierite cooking plate manufactured in China while the other parts will be manufactured in Vietnam, i.e., most of the components are purchased and then processed in Vietnam, which account for approximately 82% of the FOB cost of the finished product. The manufacturing process in Vietnam includes casting, bending and stamping brass and aluminum into the right shapes of the metal components, welding, and plastic mold injection process to make the plastic components.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its 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.
The "country of origin" is defined in 19 CFR 134.1(b) 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' within the meaning of this part."
The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or 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).
Based on the information presented in the scenario, the majority of the components, including the components of the main lids, the fire bowls, etc., are manufactured in Vietnam. The manufacturing process performed in Vietnam with respect to the grills and pizza oven in the scenario does constitute a substantial transformation of the Chinese parts or components. The manufacturing process in Vietnam involves complex and skilled operations, which is more than a simple assembly. 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. Thus, we find that the country of origin for the gas grills and pizza oven in the scenario will 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 and Border Protection 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, please contact National Import Specialist Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division