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N3195512021-06-04New YorkCountry of Origin

The country of origin of two ranges from Thailand.

U.S. Customs and Border Protection · CROSS Database

Summary

The country of origin of two ranges from Thailand.

Ruling Text

N319551 June 4, 2021 CLA-2-85:OT:RR:NC:N4:415 CATEGORY: Country of Origin Ms. Lauren Wyszomierski White & Case LLP 701 13th Street Northwest Washington, DC 20005 RE: The country of origin of two ranges from Thailand. Dear Ms. Wyszomierski: In your letter received by this office on May 19, 2021, you requested a country of origin ruling on behalf of your client, Thai Toshiba Electric Industries Co., Ltd. The ranges under consideration are listed in your submission as models MES30S4A and MES30S2A. Model MES30S4A has a 6.3 cubic foot capacity, 3,900-watt bake element, 4,300-watt broil element, 2,000-watt convection oven element, and five cooktop burners with 8,300-watt electric power. The MES30S2A has a 6.3 cubic foot capacity, 3,900-watt bake element, 4,300-watt broil element, and five cooktop burners with 7,700-watt electric power. The MES30S4A and MES30S2A have six and four knobs, respectively. Each unit is packaged for sale to individual consumers, together with its corresponding accessories. Depending on the model within the series, packaged accessories may include a user manual, installation manual, wire rack, and extension rack. 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 may vary between models in the series. In your request, you address one production and assembly scenario for these two ranges, and indicate that they would be assembled in Thailand from components sourced from China, Thailand, Mexico, Italy, Croatia, and the U.S. From the provided documentation, the bulk of the parts to construct the ranges would be from China. Per your submission, several key components, such as the metal parts, PCB assembly, door assembly, cavity assembly, cooktop assembly, and plastic bracket would be produced in Thailand. The manufacturing process for the metal parts in Thailand include stamping, bending, and degreasing of the metal to form the finished components. The plastic parts will be injection molded. Many of the parts purchased from outside of Thailand would be used to form subassemblies, which would later be assembled into the respective range. To complete the manufacturing of the ranges, pneumatic screwdrivers would be primarily utilized. 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 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). 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 assembly process flow charts for this specific scenario and is of the opinion that the parts sourced outside of Thailand underwent enough of a change to afterwards emerge with a new name, character, and use that is different from what they possessed prior to processing, thus completing a substantial transformation. In addition, essential components of these ranges are manufactured in Thailand. The packaging components are not considered parts and would not be factored into this determination. Thus, this office holds the opinion that the country of origin for these ranges would be Thailand. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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