OT:RR:NC:N4:410

William Baldwin
Cassidy Levy Kent (USA) LLP
2112 Pennsylvania Avenue NW, Suite 300
Washington, DC 20037

RE: The Country of origin for current trade remedies, marking, eligibility of the United States-Mexico Canada Agreement (USMCA) of a microwave oven/hood combination from Mexico

Dear Mr. Baldwin:

This is in response to your letter dated September 11, 2025, on behalf of Whirlpool Corporation, you request a United States-Mexico-Canada Agreement (USMCA) eligibility for preferential treatment and country of origin determination for marking purposes and current trade remedies for a microwave oven/hood combination (“microwave oven” or “appliance”).

You state in your letter that the microwave oven/hood combination is an electric kitchen appliance that combines the functions of a microwave oven and a range hood (also known as a vent hood) into a single unit. It is typically installed above the cooktop and combines the convenience of microwave cooking with the ventilation necessary for removing smoke, steam, and odors from the cooking process. Whirlpool SKU No. WMMF5930PZ is an example model of the product under consideration.

The applicable subheading for the microwave oven/hood combination will be 8516.50, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: "[e]lectric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electrothermic hairdressing apparatus (for example, hair dryers, hair curlers, curling tong heaters) and hand dryers; electric flatirons; other electrothermic appliances of a kind used for domestic purposes; electric heating resistors, other than those of heading 8545; parts thereof: [m]icrowave ovens”.

The microwave oven/hood combination consists of the following key assemblies or components: an outer wrapper assembly, a bottom plate assembly, an air channel and cooling channel, a control printed circuit board assembly (PCBA), a high voltage transformer (HVT), a magnetron, a control panel assembly, a door assembly, and a cavity.

You summarize the significant steps for producing the microwave oven/hood combination as the following: Manufacture of Outer Wrapper Assembly

The production of the outer wrapper assembly occurs in Mexico. Production of the outer wrapper begins with cutting blank sheet steel that is produced in Mexico to the required size.

The cut portions are then stamped in four steps: (1) deep draw; (2) punching and bending; (3) creating a 45-degree flange on a portion of the outer wrapper; and (4) pressing certain portions of the wrapper so that they are flat. This work, which incorporates four stamping dies, is performed while the material proceeds through the stamping machine line. After these steps, rivets are inserted into the outer wrapper assembly using a riveting machine.

Next, using a bending machine, the outer wrapper is bent from a generally flat shape (as stamped) to a “U-shape” to take the basic shape of three sides of the microwave oven.

Finally, the assembly proceeds to the painting production line, where wet coating in the desired color is applied to the surface in going through the steps of: (1) pre-degreasing; (2) degreasing; (3) rinsing; (4) applying a protective phosphate coating; (5) re-rinsing; (6) chromic seal; (7) rinsing; (8) wet painting; (9) curing; and (10) final cooling. Once these steps are complete, the outer wrapper is ready for installation during the microwave oven assembly process.

Manufacture of Bottom Plate Assembly

The production of the bottom plate assembly occurs in Mexico. Similar to the outer wrapper assembly, producing the bottom plate assembly begins with cutting blank sheet steel to size. The cut pieces are then stamped in five steps: (1) coil steel slitting; (2) drawing; (3) cutting; (4) notching; and (5) bending. The light covers, which are fabricated in Mexico as described below, are welded to the bottom plate. Finally, the bottom plate assembly is powder coated using the same 10 steps described above in connection with the outer wrapper assembly.

Manufacture of Light Covers

The microwave oven at issue includes two light covers. The light covers are fabricated in Mexico by cutting blank metal sheet to the required size, and stamping the light covers using a stamping machine.

Manufacture of Air Channel

The air channel is fabricated in Mexico from steel. The process requires cutting blank metal sheet to the appropriate size, and stamping the air channel using a stamping machine.

Manufacture of Cooling Channel

The cooling channel is fabricated in Mexico using a plastic injection molding machine.

Manufacture of Inner Door Frame

The door’s inner frame is fabricated in Mexico using a plastic injection molding machine.

Creation of Door Subassembly

The production of the door subassembly occurs in Mexico. The door’s inner frame is made in Mexico by a plastic injection molding process. The remaining door assembly components are made in China. After the imported components are inspected, the glass is cleaned and a “touch PCBA” (a smaller PCBA separate from the control PCBA which functions to support a keypad that controls the hood functions and opens the oven door) is affixed to the door glass using a pneumatic press. Next, the touch PCBA’s functionality is tested. The components of the door frame are then affixed to each other using various gluing and taping steps, and are then pressed together using a pneumatic press. After a QR code label is affixed to the glass, the door subassembly is inspected. Door hooks, rubber and sponge components are then installed in the subassembly. The door assemblies of some models require the insertion of an additional layer of glass during the door assembly process. The components of the door assembly are then connected with fasteners.

Creation of Bottom Plate Subassembly

The bottom plate subassembly is produced by installing two pieces of lighting glass on the Mexico-origin bottom plate, and installing two LED lamps into the bottom plate using fasteners. The NTC (negative temperature coefficient) bracket, the touch PCBA, and wiring harness are positioned and installed using fasteners.

Assembly of Subassemblies and Components into Finished Microwave Oven

The final assembly, also occurred in Mexico, involves assembling the subassemblies and components into the finished microwave oven involves 22 distinct steps, including various testing.

The remainder of the components, e.g., magnetrons, transformers, cavities, printed circuit assemblies for microwave ovens, and miscellaneous microwave oven parts, will be produced in China.

When determining the country of origin for purposes of applying current trade remedies under Section 301, 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, the foreign components and materials are imported into Mexico where they are manufactured into different subassemblies, and then ultimately assembled into the microwave oven/hood combination. Further, a number of the key assemblies and components are made in Mexico. It is of our view that the manufacturing process, including the plastic injection molding process, is complex and meaningful, and results a substantial transformation. Therefore, the country of origin of the microwave/hood combination is Mexico for the purposes of applying current trade remedies.

Regarding the microwave oven/hood combination’s eligibility for preferential treatment, the USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018, and approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act. General Note (GN) 11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states:

For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a “good originating in the territory of a USMCA country” only if –

(i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries; (ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials; (iii) the good is a good produced entirely in the territory of one or more USMCA countries using nonoriginating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); …

The subject microwave oven/hood combination contains non-originating materials and is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i). Moreover, under GN 11(b)(ii), the microwave oven/hood combination is not a good produced entirely in Mexico exclusively from originating materials. Therefore, we must next determine whether the non-originating materials undergo the tariff shift and other requirements provided for in GN 11(b)(iii) and GN 11(o).

The subject microwave oven/hood combination is classified in subheading 8516.50, HTSUS. As such, we look to the applicable tariff shift rule for merchandise classifiable under subheading 8516.50, HTSUS, in GN 11(o), HTSUS, which provides, in relevant part:

A change to subheadings 8516.10 through 8516.80 from any other subheading, including another subheading within that group.

Based upon the information provided in the Bill of Materials (BOM), all non-originating parts included in the manufacture of the finished microwave oven/hood combination are classified outside of subheading 8516.50, HTSUS. Thus, the finished microwave oven/hood combinations are considered originating goods under the USMCA and eligible for preferential treatment.

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 United States 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 United States the English name of the country of origin of the article. Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304.

Pursuant to 19 C.F.R Section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. Applied in sequential order, the required hierarchy establishes that the country of origin of a good is the country in which:

(1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. ...

Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because the microwave oven is neither wholly obtained or produced nor produced exclusively from “domestic” (Mexico, in this case) materials. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin determination, we look to section 102.11(a)(3). Section 102.11(a)(3) provides that the country of origin of a good is the country in which: Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

“Foreign material” is defined in § 102.1(e) as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.”

As with the USMCA examination above, we similarly find that we must use the product specific rule for the previous classification of subheading 8516.50, HTSUS, represented in section 102.20. This rule states, in relevant part:

A change to subheading 8516.10 through 8516.79 from any other subheading, including another subheading within that group.

As stated above, all parts involved in the manufacture of the finished product are classified outside of subheading 8516.50, HTSUS, the foreign materials undergo the requisite tariff shift. Further, we note that no parts used in the manufacture appear to be classified within the noted exclusionary subheadings. As such, the finished microwave oven/hood combinations are considered products of Mexico for marking purposes.

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 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,

(for)
Evan Conceicao
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division