The country of origin of a coffee brewer from Malaysia.

N308736 January 28, 2020 CLA-2-85:OT:RR:NC:N4:415 CATEGORY: Country of Origin Mr. Craig A. Lewis Hogan Lovells US LLP 555 13th Street Northwest Washington, DC 20004 RE: The country of origin of a coffee brewer from Malaysia. Dear Mr. Lewis: In your letter dated December 23, 2019, you requested a country of origin ruling on behalf of your client, Keurig Dr. Pepper. The product under consideration is the Model K90 single serve coffee brewer. This domestic coffee brewer measures approximately 13 inches tall, by 10 inches wide, and 13 inches deep. It includes features such as choice of cup size, auto-off functionality, and a removable drip tray. In your request, you indicated that this coffee brewer will be exported to the United States from Indonesia. The manufacturing and assembling of various subassemblies would be undertaken in Malaysia and Indonesia, with final assembly in Indonesia. The brewer consists of two principal components, the hot water tank and the brewer base, and three supporting subassemblies, the cold water tank, the user interface, and the puncture mechanism. In addition, it consists of various tubes for the conveyance of water between the subassemblies, connecting electrical wires, and a power cord. Per your submission, the hot water tank and brewer base assembly would be manufactured and assembled in Malaysia and would then be sent to Indonesia and incorporated with the other subassemblies into the completed brewer. The hot water heater subassembly would use parts sourced from Malaysia, China, and a third country, with the bulk coming from China. The brewer base subassembly would be assembled from parts sourced from Malaysia, Vietnam, and China. Pursuant to Part 134, Customs Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 USC 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as: “[t]he 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 National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation. This office reviewed the provided documentation on the work processes completed in Malaysia for the hot water tank and brewer base subassemblies, and is in agreement that the hot water tank subassembly is what provides the essential character to this product and allows it to be classified under heading 8516. As the parts of various origin are substantially transformed into the completed hot water tank and brewer base subassemblies, these components would be Malaysian in origin. After considering the additional steps completed in Indonesia, as mentioned in your submission “screw driver operations,” these processes would be deemed simple assembly and not substantially change the nature of this product. As such, this office is of the opinion that in the provided scenario, the Model K90 single serve coffee brewer would be a product of Malaysia. 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