The country of origin of vacuum cleaners

N319177 May 20, 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 NEU610 Series, which is a bagless, electric-powered vacuum cleaner designed for household use. The vacuum's power is 960W, and its dust cup capacity is 1.5L. The vacuum cleaners are packaged for sale to individual consumers to be used as an upright 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, for the single production scenario at issue, there are roughly over 30 components and sub-assemblies used in the NEU610 Series. Parts and components are sourced from both China and Vietnam. Approximate 21% (by unit cost) of the materials used to produce the NEU610 Series vacuums are sourced from Vietnam. Parts and components manufactured in Vietnam include lower motor cover, wheel cover, upper motor cover, crevice tool, motor cover assembly, lower and upper cord wraps, stand holder, body assembly, dust cup assembly, exhaust grill assembly, user manual and packaging materials, etc. The parts and components imported from China are power cord and power switches, foot and foot wheel assemblies, handle assembly, hose assembly, pet tool, etc. The production process in Vietnam is described as follows: The proposed production scenario consists of both the production of three of the unit's key sub-assemblies and the unit's final assembly. The production of key components and the final assembly process occur at Midea's facilities in Vietnam. 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. 1. Production of Key Components As noted above, the production of the finished vacuum cleaner requires the initial construction of three key sub-assemblies in Vietnam. Each of the steps may involve various sub-step operations. A. Body Sub-Assembly: consists of seven steps to install the hose hanger, bottom cover lock of the dust cup, motor cover sealing ring, duct sea, EVA seal, handle release button, floor brush hose. B. Dust Cup Sub-Assembly: consists of 10 steps to install the sealing ring of the lower cover, bottom cover lock, bottom cover and the dust cup, secondary separator sealing ring, filter system, handle cover and upper cover, dust cup lock block, safety valve, dust cup filter and upper cover. C. Foot Sub-Assembly: consists of 14 steps to install the pressure wheel axle, motor sealing ring and lock motor, self-locking switch, telescopic hose, light board, pedal lock block and lock light board, small rollers and wool tops, lock button and wool felt, PBC and wiring, pedal lock block and buckle the upper cover, roller brush, lock screws, appearance inspection and packaging. 2. Final Assembly The in-house sub-assemblies of the NEU610 Series are combined with several other components sourced from both China and Vietnam and sent to the main assembly line for production of the finished vacuums pursuant to the following process. This process consists of 26 distinct steps. A different worker carries out each step listed below. Place floor brush and body sub-assembly on assembly line (2 steps), dust cup inspection and labeling (2 steps), motor wiring (5 steps), assemble motor inner cover (5 steps), motor positioning (5 steps), affix motor inner cover (3 steps), arrange cables (3 steps), combine motor cover (3 steps), arrange wires (3 steps), affix motor cover (2 steps), floor brush assembly (3 steps), affix left and right pressure blocks (3 steps), affix floor brush (2 steps), affix crimping caps (3 steps), install clamp ring (3 steps), install air outlet plate (5 steps), install large rollers (5 steps), withstand voltage tests (2 steps), hose test (3 steps), floor brush test (5 steps), and the inspection, labeling, followed by packaging operations. 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