CLA-2-85:OT:RR:NC:N4:410
Richard Ta
Odyssey Internation Services Inc.
305 Bridge Point Dr., Suite 150 South St. Paul, MN 55075
RE: The tariff classification and country of origin of an ultrasonic aroma diffuser
Dear Mr. Ta:
In your letter dated January 14, 2025, you requested a tariff classification and country of origin determination ruling for an ultrasonic aroma diffuser for the purposes of applying current trade remedies under Section 301.
The ultrasonic aroma diffuser consists of a base, water tank, an atomizer and cover, inner and top covers, PCBAs (Printed Circuit Board Assemblies), a button and fan (containing an electric motor).
The applicable subheading for the ultrasonic aroma diffuser will be 8509.80.5095, Harmonized Tariff Schedule of the United States (HTSUS), which provides for electromechanical domestic appliances, with self-contained electric motor, other than vacuum cleaners of heading 8508, parts thereof: other appliances: other: other. The rate of duty will be 4.2 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/.
The submitted Bill of Materials indicates that the atomizer, ceramic top cover and the electronic components for the PCBAs, and the fan are from China. The plastic parts, such as the base, water tank, covers, button, rings, are made in Vietnam through plastic molding process; and the PCBAs are also made in Vietnam though SMT (Surface Mount Technology) procedures. The SMT procedures include the operations of before-printing processing, printing the top layer of solder mask, onto a printed circuit board (TOP printing), system in package (SIP) check, component attaching, automated optical inspection (AOI) before soldering, reflow soldering, AOI Inspection after soldering, de-paneled, and after soldering visual inspection.
When determining the country of origin for purposes of applying current trade remedies under Section 301 (insert Section 301, Section 201, or Section 232, as appropriate), the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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).
We find that a significant number of the parts or components are made in Vietnam, the manufacturing operations, including the plastic molding and SMT procedures, are both substantial and complex. The manufacturing process in Vietnam does create 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 country of origin of the ultrasonic aroma diffuser is Vietnam for the purposes of China Section 301 remedies.
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