The country of origin of vacuum cleaners

N309819 March 9, 2020 MAR-2 OT: RR: NC: N4:410 CATEGORY: Country of Origin Ms. Lauren Wyszomierski White & Case LLP 701 13th Street NW, Suite 600 Washington, DC 20005 RE: The country of origin of vacuum cleaners Dear Ms. Wyszomiersk: This is in response to your letter dated February 13, 2020, on behalf of your client Midea American Corporation, requesting a country of origin determination for vacuum cleaners. The merchandise under consideration is identified as the “vacuum cleaner the NES21 Series”. This model series includes upright, electric-powered vacuum cleaners designed for household use rated 240W with dust receptacle (dust cup) capacity of 0.55 L. The vacuum cleaners are packaged for sale to individual consumers. Each unit is sold in a single package together with its corresponding accessories. The models within the series vary slightly because they are sold into different markets with different color schemes, different accessories, or slightly different features. However, all models use the same platform, with only one or two parts that might vary between models in the series. You present a processing scenario for the entire NES21 Series for the country of origin determination. Under the scenario, the product’s materials and components are sourced from China and Vietnam and its final processing occurs in Vietnam. The NES21 Series is made from roughly over 40 components and sub-assemblies. Approximately 35% of the listed components and sub-assemblies, such as brushes, pedals, crevice tubs, motor assembly, power cords, buttons and switches, are imported from China. The production of the completed vacuum cleaners in Vietnam consists of both the production of two of the product’s key sub-assemblies and the unit’s final assembly. The laborers involved in the production of the vacuum cleaners in Vietnam include electricians, product engineers, test engineers and workers who are specially trained to ensure the product’s quality and specifications. Key sub-assemblies made in the Vietnamese factory include foot sub-assembly (floor nozzle) using plastic components molded in Vietnam and a brush roller sourced from China, and the handle sub-assembly. The final assembly is conducted in main assembly line, in which the major sub-assemblies are combined with approximately 37 other components sourced from both China and Vietnam, and the components are sent to the main assembly line for production of the finished vacuums. This process consists of 21 distinct and complex steps, generally including (A) assembly/manufacture; (B) testing; and (C) packing. Each step listed below is carried out by a different worker. 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”. In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative. Based on the information submitted, the materials/components (e.g. brushes, pedals, crevice tubs, motor assembly, power cords and switches) are imported into Vietnam where they are manufactured into different subassemblies, which are ultimately assembled into the subject NES21 Series vacuum cleaners. We find that the processing performed in Vietnam with respect to the NES21 Series vacuum cleaners in the scenario does constitute a substantial transformation of the imported materials/components into "products of" Vietnam. The manufacturing process in Vietnam transforms the Chinese originating components/materials to produce the finished vacuum cleaners. It creates 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 "product of" requirement has been satisfied. For tariff purposes, it is of the opinion of this office that the country of origin for the vacuum cleaners will be Vietnam. 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 michael.w.chen@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division