The country of origin of a gas grill

N320713 August 12, 2021 MAR-2 OT: RR: NC: N4:410 CATEGORY: Country of Origin Mr. Aaron Applebaum Sidley Austin LLP 1501 K Street, N.W. Washington, DC 20005 RE: The country of origin of a gas grill Dear Mr. Applebaum: This is in response to your letter dated July 28, 2021, on behalf of your client Char-Broil, LLC (“Char-Broil”), requesting a country of origin determination for a gas grill. The merchandise under consideration is a four-burner gas grill designed for outdoor use (“the Gas Grill”). The four burners are housed underneath three cooking grates inside the firebox-lid assembly. Attached to the front of the firebox-lid assembly is a control panel with four control knobs. A fifth burner with control knob is built into the left shelf. The hose/valve regulator assembly conveys gas (from the gas line or propane tank) to the burners for cooking food. Attached to the bottom of the grill is a leg-brace assembly (i.e., a cart), which elevates the grill, houses the propane tank, and incorporates wheels so that the grill can easily be moved. It is stated that the Gas Grill’s most valuable and important subassemblies are the firebox and the lid, which are both produced in Vietnam. Char-Broil has made substantial investments in researching, developing, and engineering these subassemblies so that they function together to provide an optimal grilling experience for the user. The firebox performs a number of important functions - it sets the relationship between the food and the heat source (i.e., the design of the firebox determines how far/close the food is to the heat source); it retains heat and supplies and distributes combustion air; and it forms the mechanical foundation of the grill (if the firebox breaks, the entire grill must be replaced). The lid also performs important functions - it makes efficient use of the heat source by retaining heat, which helps ensure that the food cooks evenly and is imparted with a smoky flavor, and it distinguishes the Gas Grill from other types of grills that do not have lids (e.g., hibachi appliances). In addition to the firebox and lid subassemblies, various other components are also produced in Vietnam. The manufacturing processing scenario for the country of origin determination of the grills is presented in the ruling request. Under the scenario, the products’ components and parts are produced in Vietnam and sourced from China. The final processing occurs in Vietnam. The grills contain over 60 parts and components. Over 60% (by unit cost) of the components and parts are made in Vietnam. They are, e.g., lid weldment, firebox weldment, control panel, control knobs, warming rack, flame tamers, grease tray and grease cup, side shelf, heat shield tank, side shelf support braces, side shield, mounts and weldments, panel carts, cross bars, wheel legs, etc., in addition to the packaging materials and user’s manual. Other components, parts or sub-assemblies are imported from China including, e.g., tube burners, lid handle, main valve assembly, regulator and hose, cooking grates, EI module, grill brush, hardware pack, etc. It is stated that the components are produced in Vietnam through a multi-step manufacturing process that involves converting raw metal into discreet components through cutting, stamping, and punching operations; subassembly operations that involve spot welding components together to form the firebox and lid subassemblies; and final assembly and testing. These operations require specialized industrial equipment, including a four-column double- action hydraulic press, high-performance stamping equipment, and hydraulic bending machines. Specifically, the following components are produced in Vietnam through a series of cutting, stamping, and punching operations: Lid components, including the outer sheet, inner sheet, inner front sheet, inner rear sheet, and the left and right side sheets; Firebox components, including the back sheet, front sheet, left and right side sheets, and the oil guide plate; Control panel and the left and right control panel braces; Heat shield plate; Thermometer bezel; Grease pan, grease tray, grease cup and grease cup bracket; Heat transfer bar and gas tank heat shield; Upper and lower front cart panels; Left and right side shelves; Left side table, burner shelf, burner drip pan; Left and right fascia, and right fascia brace; and A number of additional components including the flame tamer, side table support braces, cart components (legs, frame, tank support bracket, etc.), knob bezel, etc. The final assembly of the Gas Grill performed in Vietnam is described as the follows, which involves assembling together over 95 parts and components with over 30 processing steps. Major steps include: Install inner rear sheet into the lid; Install Char-Broil logo onto the front of the lid; Install thermometer bezel and thermometer onto the front of the lid; Install rubber underlay onto the lid; Install rubber underlay onto the firebox; Install heat shield plate onto the firebox; Connect the hose to the gas valves to create the hose/valve regulator assembly; Test the hose/valve regulator assembly for gas leakage; Install ignitor pins into the burner tubes; Test the ignitor; Install the hose/valve regulator assembly and bezel valve buttons into the front of the firebox; Install the front cover onto the front of the firebox; Install the burners and carryover tubes into the firebox; Attach the lid onto the firebox; Screw the control panel and control knobs onto the front of the firebox; Assemble the left and right side trays; Assemble the cart panels; Apply warning labels and performing safety tests; and Packaging for retail sale and packing for export to the United States. 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 grills. We find that the processing performed in Vietnam with respect to the grills 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 grills. 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 grills 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