The country of origin of vacuum cleaners

N322549 November 5, 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 October 31, 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 NEU250 Series. The model presented is an upright vacuum cleaner designed for household use. The vacuum’s power is 960W, and its dust cup capacity is 2.2L. The vacuum cleaners are packaged for sale to individual consumers. 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 approximately 42 components and sub-assemblies used in the NEU250 Series. Parts and components are sourced from both China and Vietnam. Approximate 57% (by unit cost) of the materials used to produce the NEU250 Series vacuums are sourced from Vietnam. Parts and components manufactured in Vietnam include the handle assembly, dust cup assembly, nozzle assembly, housing assembly, air plate assembly, upper winding hook assembly, honeycomb paperboard, brackets, screws, packaging and packing materials, etc. The parts and components imported from China are power cord, motor upper cover assembly, motor cover assembly, motor assembly, small brushes, switches, cyclone, filter cotton, sealing rings, protector assembly, rear wheel assembly, elevated frame, air control assembly, 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, i.e., dust cup sub-assembly, nozzle sub-assembly, body sub-assembly and the unit’s final assembly using the materials and components sourced from both China and Vietnam. 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. The dust cup sub-assembly consists of 10 different processing steps, each step involves 1 to 3 sub-steps totaling 20 sub-steps. The steps include the following operations: to install the bottom dust cup sealing ring, install the dust cup bottom lock, connect bottom cover and dust cup, install the secondary separator dust cup sealing ring, assemble cyclone in dust cup, connect handle cover and upper cover of the dust cup, install dust cup lock block, install safety valve, install dust cup filer, and install upper cover. The nozzle sub-assembly consists of 5 different processing steps, each step involves 2 to 3 sub-steps totaling 12 sub-steps. The steps include the following operations: to install nozzle shrapnel, install the raising shelf, install the large rollers, install the roller brush, install the lower cover of the nozzle, and pack the nozzle. The body sub-assembly requires 6 different processing steps, each step involves 1 to 2 sub-steps totaling 11 sub-steps. The steps include the following operations: to install the lower cover on the body, install the motor cover seal, install the air duct seal, install the Ethylene Vinyl Acetate (“EVA”) seal, install the handle release button, and install the floor brush hose. The sub-assemblies 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. The final assembly process consists of 23 distinct and complex steps which includes 49 sub-steps. The steps include the following operations: to install the muffler cotton and seal on the motor, install the power cord, install the switch patch cord, crimp the wires, affix the pressure plate, affix motor cover perform pressure test, install nozzle base, affix bracket, affix clamp ring, perform hose test and perform the inspections and packaging and packing 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