The country of origin of a toaster oven from various countries.

N302544 February 28, 2019 CLA-2-85:OT:RR:NC:N4:415 CATEGORY: Country of Origin Mr. Aaron Stumpf Hamilton Beach Brands, Inc. 4421 Waterfront Drive Glen Allen, VA 23229 RE: The country of origin of a toaster oven from various countries. Dear Mr. Stumpf: In your letter dated January 9, 2019, you requested a country of origin ruling. The article under consideration is a stainless steel, six-slice toaster oven (type 067, model number 31411). In your request, you indicated that this toaster oven would be assembled either in India, Indonesia, or Thailand. The majority of the parts would be sourced from the country of assembly, but a few would be obtained from China as required by the supply chain of the manufacturer. Pursuant to Part 134, Customs Regulations (19 C.F.R. 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. 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’ within the meaning of this part.” A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986). From the provided documentation, the toaster oven from India would have the lower and upper heater elements produced in China, while the other parts would be manufactured in India. The toaster oven would be assembled from the Indian and Chinese parts in India. As the listed parts are assembled and afterwards emerge with a new name, character, and use that is different from what they possessed prior to processing, thus completing a substantial transformation, the country of origin in this scenario would be India. The toaster oven from Indonesia would have the timer and thermostat manufactured in China, while the other parts would be manufactured in Indonesia. The toaster oven would be assembled from the Indonesian and Chinese parts in Indonesia. As the listed parts are assembled and afterwards emerge with a new name, character, and use that is different from what they possessed prior to processing, thus completing a substantial transformation, the country of origin in this scenario would be Indonesia. The toaster oven from Thailand would have the housing, rear cover, and door cam made in China, while the other parts would be manufactured in Thailand. The toaster oven would be assembled from the Thai and Chinese parts in Thailand. As the listed parts are assembled and afterwards emerge with a new name, character, and use that is different from what they possessed prior to processing, thus completing a substantial transformation, the country of origin in this scenario would be Thailand. In your request, you referenced Headquarters ruling H300226, dated September 13, 2018. Please note, this ruling was modified by H301619, dated November 6, 2018, as the ruling contained an error with regard to its articulation of the scope of the applicability of the substantial transformation test. Additionally, these rulings are dissimilar to the conditions of the product subject to this request as it would not be eligible for preferential duty treatment under the North American Free Trade Agreement (NAFTA). Eligibility for a different trade program was not claimed in your submission. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Kristopher Burton at kristopher.burton@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division