The country of origin of air purifiers

N322364 November 18, 2021 MAR-2 OT: RR: NC: N4:410 CATEGORY: Country of Origin Ms. Michelle Campbell Catalyst Customs Brokers, Inc. 2252 Landmeier Road Elk Grove Village, IL 60007 RE: The country of origin of air purifiers Dear Ms. Campbell: This is in response to your letter dated October 21, 2021, on behalf of your client Guardian Technologies LLC, requesting a country of origin determination for the air purifiers. The merchandise under consideration is identified as Germguardian AC4825E 4 in 1 Air Purifying System (the “Air Purifier”). The subject air purifier, roughly cylindrical in shape with a control panel on top, is a device that uses a fan, a carbon filter, HEPA filtration and UV-C Light Technology to trap allergens, fight germs and reduce unpleasant odors. The air purifier removes dust, pet dander and pollen. You present two manufacturing processing scenarios for the country of origin determination of the Air Purifiers. Under the scenarios, the product’s components and parts are produced in Vietnam and sourced from China. The final processing occurs in Vietnam. The Air Purifiers each contain approximately 40 components. In the first scenario, the UV lamp, UV lamp holder and protection board, PCBA assembly, fan switch, motor switch assembly, HEPA filter, air outlet iron net, and power cord, etc. are imported from China. All other components and parts are manufactured in Vietnam. They include the plastic molding parts (UV lamp box and cover, top cover, cap of top cover, control panel, button and knob, front cover and rear housing, rear cover, blower, blower covers, motor bracket, PCB box, switch covers), motor, screws in additions to labels, packing materials, etc. The Bill of Materials indicates that approximately 56% (by value) of the components and parts used to produce the Air Filter are made in Vietnam. The production process in Vietnam consists of both the production of the sub-assemblies/parts with the Vietnamese originated and imported components and materials, and the final assembly process. The workers involved in the production of the Air Purifiers in Vietnam include electricians, product engineers, test engineers, and individuals specially trained to ensure the product’s quality and specifications. The following sub-assemblies/parts are made in the manufacturing process before and for the final assembly process in the Vietnamese factory: the control panel (39 steps), UV lamp assembly (19 steps), PCB assembly (4 steps), decorative lamp strip (11 steps), wire/terminal preparation (7 steps), rotary switch assembly (3 steps), UV protective board processing (4 steps), microswitch PCBA installation (17 steps), motor assembly installation (17 steps), rear shell/housing assembly (49 steps). The final assembly process is to use the above sub-assemblies/parts made in the Vietnamese factory to manufacture the finished air Purifiers. The final manufacturing process includes: inspecting the plastic molded front housing (4 steps), installing the iron outlet to the front housing (4 steps), shaping and affixing iron outlet locking foot in the machine (4 steps), installing the motor compartment (3 steps), affixing the motor bracket to the front housing (2 steps), affixing the air duct to the front housing (3 steps), connecting the top control panel (6 steps), installing the UV lamp components (8 steps), installing the PCB box (4 steps), installing the PCB fireproof box (4 steps), installing top housing (2 steps); installing the top cover (3 steps), affixing the UV lamp to front housing (3 steps), connecting the front and rear housing wires (6 steps), assembling the front housing and rear housing and installing the UV (10 steps), securing the top cover and UV lamp protection board (4 steps), and affixing the filter to the rear housing (6 steps). The product cleaning, label affixing, inspection, testing, packing will follow to complete the manufacturing process. The second manufacturing scenario is similar to the first one presented above but the motor will be imported from China instead of being made in Vietnam. Accordingly, the portion of Vietnamese originated components and parts will decrease to approximate 35% (by value) in this scenario. 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 Air Purifiers. We find that the processing in Vietnam with respect to the Air Purifiers in the first scenario does constitute a substantial transformation of the imported components and parts into "products of" Vietnam. 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. The manufacturing process in Vietnam transforms the non-originating components and parts to produce the finished Air Purifiers. Therefore, the "product of" requirement has been satisfied. It is of the opinion of this office that the country of origin for the Air Purifiers in the first scenario will be Vietnam. However, in the second scenario where the motor will be imported from China (Chinese-originated), we find that the motor is such a significant component in making the air purifiers at issue and also the most expensive component of the air purifiers, the country of origin for the air purifiers in the second scenario will be China. 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