The country of origin of vacuum cleaners

N319176 May 19, 2021 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. Wyszomierski: This is in response to your letter dated April 29, 2021, on behalf of your client Midea America Corporation, requesting a country of origin determination for vacuum cleaners. The merchandise under consideration is vacuum cleaners identified as the 3670G Series, which are canister vacuum cleaners. The vacuum's power is 1,200W, and its dust cup capacity is 2.5L. The vacuum cleaners are packaged for sale to individual consumers to be used as a canister vacuum. 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, the models all use the same platform, with only one or two parts that might vary between models in the series. You present a manufacturing processing scenario for the country of origin determination of the vacuum cleaners. Under the scenario, there are roughly over 30 components and sub-assemblies used in the 3670G. Parts and components are sourced from both China and Vietnam. Approximate 37% (by unit cost) of the materials used to produce the 3670G Series vacuums are sourced from Vietnam. Parts and components manufactured in Vietnam include crevice tool, dust bag house, front cover, bottom cover, etc., in addition to the user manual and packaging materials. The parts and components imported from China are plastic tube, foot assembly, motor ring, 2 in 1 brush tool, hose assembly, motor foam, dust bag, motor sealing ring, motor holder, temperature controller, switch, motor, wiring, power cord, etc. The components sourced from both China and Vietnam are sent to the main assembly line in the Vietnamese factory for production of the finished vacuums. The assembly process consists of 18 distinct steps. They include the operations to install motor seal; position motor; arrange cables; install switch; assemble base; position base; affix base; install upper cover; perform withstand voltage test, performance test and visual inspection; followed by the labeling and packaging operations. You state that the workers involved in the production of the vacuums in Vietnam include electricians, product engineers, test engineers, and individuals specially trained to ensure the product's quality and specifications. 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 components and parts are imported into Vietnam where they are manufactured into different subassemblies, which are ultimately assembled into the subject vacuum cleaners. We find that the processing performed in Vietnam with respect to the vacuum cleaners in the scenario does constitute a substantial transformation of the imported components and parts into "products of" Vietnam. The manufacturing process in Vietnam transforms the non-originating components and parts 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. 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