The country of origin and marking of a mattress base.

N306524 October 30, 2019 CLA-2-94:OT:RR:NC:N4:433 CATEGORY: Origin; Marking George R. Tuttle, III Tuttlelaw 1100 Larkspur Landing Circle, Suite 385 Larkspur, CA 94939 RE: The country of origin and marking of a mattress base. Dear Mr. Tuttle: In your letter dated October 1, 2019, you requested a ruling on behalf of your client, Ergomotion Incorporation, seeking confirmation that the article identified below is country of origin Vietnam, and not subject to China Section 301 duties. Illustrative literature, a product description, and manufacturing processes were provided for review. The item subject of this ruling request is constructed of foreign and domestically sourced raw materials. A description of the item immediately follows: You state the “Ease 3.0, Mechanically Adjustable Bed Foundation, “… incorporates the characteristics of a bed foundation and sits directly on the ground via legs and is the platform for a mattress which sits atop the foundation. The adjustable bed base replaces a traditional box spring and provides multiple mattress positions via its articulating electromechanical structure as the user gives input to the adjustable bed base via AC-powered electronics and a wired or wireless hand remote control. The adjustable bed foundation may or may not have other electrical accessories, such as massage (vibrator) motors, USB ports, or under-bed LED lighting.” Per your submission, manufacturing materials that includes: the wooden head deck, front seat deck, back seat deck, thigh deck, feet deck, assembly hardware, adhesives, head motor, foot motor, and additional component materials are sourced from China. The component materials are shipped and exported to Vietnam. In Vietnam, production materials that includes: the power supply, plywood slates, assembly hardware, woven fabric, foam, and additional component materials are locally sourced. In Vietnam, nearly 300 individual components and materials are assembled by general assemblers, production engineers, and quality assurance workers to product design specifications. Assembly of the Ease 3.0 bed foundation occurs in Vietnam as follows: Step one (1), the head mattress-support deck and the foot mattress-support deck are constructed by aligning the five wooden deck panels (head, front, back, thigh, feet) on a jig table and then fastening the panels to one another using steel and plastic hinges. Chinese sourced wooden strips are then nailed via an air tool into the panels to add strength and support. An extruded polyethylene foam border of Vietnamese origin is then cut to length using a hot-wire cutting process to form side rails. The side rails are then attached to the panels edges. Step two (2), the head mattress-support deck and the foot mattress-support deck are then turned over so the “top” is facing up. Workers use a spray machine and apply glue evenly across the entire exposed surface of the wooden deck assembly. High-density Vietnamese sourced foam is then installed onto the wooden deck assembly. The foam and wooden deck assembly are then folded at each hinged wooden panel for adhesion and curing of the glue. Step three (3), workers evenly apply glue across the entire top surface of the high-density foam. Cut and sewn fabric of Chinese origin is then upholstered to the foam and wooden deck assembly. Step four (4), the upholstered wood deck assembly is flipped over so that the “bottom” is facing up. Black non-woven fabric of Chinese origin is then air nailed and aligned with the corners to keep creases and folds out. Step five (5), with the wooden deck panels now assembled and upholstered, Vietnamese workers then attach Chinese sourced electronic control units, black powder-coated steel connecting rods, assembly hardware, and rubber wire management conduits to the underside of the wooden deck assembly. Step six (6), the steel frame head and foot lift assembly is constructed using Chinese sourced black powder coated steel weldments, screws, nuts, and spacers. Step seven (7), head and foot linear actuator motors, power input cables, wire management connectors, motor pins, motor pin locks, and clip motor cables of Chinese origin are then installed in designated locations so that during operation the electrical system is not crushed. A power supply and remote control of Chinese origin are then used to test the electrical functionality of the mechanically adjustable bed foundation prior to packing and export. Photos of these processes were provided. Steps eight (8) through ten (10) account for specific work instructions of different adjustable bed foundation sizes due to minor differences in widths and lengths of the finished goods. COUNTRY OF ORIGIN AND CHINA SECTION 301 APPLICABILITY Section 134.1(b), Customs Regulations (19 CFR 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.” A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use. A “complex or meaningful” assembly operation may result in a substantial transformation while a “minimal, simple, assembly-type operation” ordinarily will not. The term “simple assembly” is defined in 19 CFR 102.1(o) as “the fitting together of five or fewer parts all of which are foreign (excluding fasteners such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or by other means without more than minor processing.” Production of Ergomotion’s adjustable bed foundation requires manufacturing of the products platform bases, assembly of both a wooden head deck along with a wooden foot deck, cutting to size both foam and fabric to the wooden head deck and the wooden foot deck assemblies, and then construction of the metal adjustable frame. The remainder of manufacturing is mating all other support systems and structure to the deck through a combination of wood, glue, fabrics, steel weldments, fasteners, electronic motors, and a control system so that the sum of the parts transform into a piece of electro-mechanical motion furniture. The major assemblies and their components are manufactured to an extent that none of the individual components alone can perform the mattress adjustability function. In the instant case, the foreign Chinese components and the domestic Vietnamese material components lose their identity during manufacture in Vietnam and undergo a substantial transformation, thereby, taking on a new name, character, and identity. In view of these facts, the country of origin for the mechanically adjustable bed foundation is conferred in Vietnam. In HQ H301619, dated November 6, 2018, CBP noted that: “When determining the country of origin for purposes of applying current trade remedies under Section 301, Section 232, and Section 201, the substantial transformation analysis is applicable.” The Section 301 statute, the United States Trade Representative (USTR) action thereunder, and CBP’s interpretation of such action, all reflect that the current China Section 301 duties apply only to “products of China.” As a “product of Vietnam,” the mechanically adjustable bed foundation is not subject to China Section 301 trade remedy duties. MARKING Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted by law, 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, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Pursuant to 19 CFR Section 134.1(b), the country of origin is the country of manufacture, production or growth of any article of foreign origin entering the U.S. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. You did not submit marking photographs of the mechanical adjustable base to determine if the statutory requirements of 19 CFR Part 134 are met. As a product of Vietnam, the subject merchandise must be marked accordingly. 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 Dharmendra Lilia at dharmendra.lilia@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division