The country of origin of Pressure Washers

N315709 November 30, 2020 OT:RR:NC:N1:105 CATEGORY: Country of Origin Laura S. Rabinowitz Greenberg Traurig, LLP MetLife Building New York, New York 10166 RE: The country of origin of Pressure Washers Dear Ms. Rabinowitz: In your letter dated November 4, 2020, on behalf of your client, Positec Tool Corporation, you requested a country of origin ruling. The products under consideration are four models of portable pressure washers (WG602, WG605, WG606, and WG607). Each pressure washer has a slightly different design but is manufactured in a very similar way. For example, WG602 and WG605 are manually moved when operating, while the WG606 and WG607 are pulled on wheels. Each of the pressure washers have motor-driven electric engines, which powers a pump to force water through a hose and nozzle to attain a high-pressure projection. Other features include a soap dispenser bottle, high-pressure hose, adjustable spray nozzle, spray lance and spray gun. The devices are used to clean tough debris from outdoor items by the use of a powerful pressurized jet of water. The motor and pump for all four models of pressure washers are manufactured in Vietnam. The manufacturing process is fairly complex and requires all of the parts to be assembled into a working motor and pump. The final steps include combining the motor and pump into a sub-assembly before being packaged for export from Vietnam to China for final assembly. The remainder of the components, including but not limited to the case, capacitance, power cord, and switch, are manufactured in China. In China, the upper case and upper cover plate are assembled together, microswitch inserted, Vietnamese motor and pump inserted, upper and lower case combined, wheels and hose installed. Once fully assembled in China, the product is packaged for final sale. All of the assembly in China would be considered simple assembly despite the numerous steps and components required. With regard to the appropriate country of origin of the pressure washers (model numbers WG602, WG605, WG606, and WG607), Section 304 of the 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 U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such a manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. The regulations implementing the requirements and exception to 19 U.S.C. § 1304 are set forth in Part 134, Customs and Border Protection Regulations (19 C.F.R. Part 134).19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means 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;As stated in HQ 735009 dated July 30, 1993, “The country of origin is the country where the article last underwent a “substantial transformation”, that is, processing which results in a change in the article's name, character, and use”. In addition, the court has held that “A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, and use that differs from the original material subjected to the processing.” However, if the manufacturing or combining process is a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. In order to determine whether a substantial transformation occurs when components of various origins 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. As noted, assembly operations that are minimal will generally not result in a substantial transformation. In this instance, the motor and pump sub-assemblies are completely manufactured in Vietnam. The assembly requires numerous steps and skilled labor to perform. The motor and pump subassemblies account for 38% of the WG606 material value all the way up to 49% for the WG602. In addition, the motor and pump are the primary component by weight and volume in the finished pressure washers. The essential character of the finished pressure washer would be the ability of the motor and pump to pressurize the water so that it can provide a high powered jet for cleaning. Without it, the primary function is lost. Once the motor and pump subassembly is shipped to China, the remainder of the production process involves the simple assembly of many Chinese components. Most of these components are inconsequential components such as screws, handles, covers, soap tanks, etc. The only components that carry substantial cost are the power cord, hose and spray gun, which are still valued quite a bit less than the motor and pump subassembly. Each of these components are important for the final pressure washer to function, however, we find that the motor and pump subassembly is the essential character of the finished pressure washers. It is this office’s opinion that the motor and pump subassembly production performed in Vietnam creates a component that provides the essential character of the pressure washers. In the absence of the motor and pump assembly, the pressure washer loses its primary function of its ability to pressurize and spray water. The subassembly provides the necessary water pressure for the pressure washer to operate effectively. The additional simple assembly performed in China, albeit with numerous Chinese components, further enhances the production of the pressure washers but does not amount to a substantial transformation. In our view, the assembly process performed in China does not transform the subassembly into a new and different product having a new function and purpose. In view of these facts, the country of origin is Vietnam. 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 Jason Christie at Jason.M.Christie@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division