The country of origin of toaster ovens from Vietnam.

N333420 July 5, 2023 OT:RR:NC:N4:415 CATEGORY: Origin Stacy Ettinger K&L Gates, LLP 1601 K Street NorthwestWashington, DC 20006 RE:  The country of origin of toaster ovens from Vietnam. Dear Ms. Ettinger: In your letter dated June 8, 2023, you requested a country of origin ruling on behalf of your client, Midea America Corporation. The products under consideration are toaster ovens in a series with the model designation of “MG.” The toaster ovens within this series come in a variety of sizes, such as 10-liter, 18-liter, 25-liter, and 32-liter capacity, and are 1500-watt electric-power mechanical structure, single-function ovens with rectangular front doors. They are all designed for domestic use. You indicate that for explanatory and informational purposes, you provided details on the production of the 32-liter capacity model, listed as “MG32AYJ-000ZA,” as a representative example. Each toaster oven 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, crumb tray, baking rack, or baking/drip pan. The models within the series vary slightly because they are sold into different markets with different color schemes, and have 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 state that these toaster ovens would be assembled in Vietnam from components sourced from China and Vietnam. From the provided documentation, the bulk of the parts to construct the toaster ovens would be from China. Per your submission, the base plate, back plate, front plate, outer case (cover), crumb tray, grill tray, adjustment knobs, and the expanded polystyrene (EPS) packing structure would be manufactured in Vietnam. The manufacturing process for the metal parts in Vietnam include stamping and further working (e.g., edge-cutting, punching, bending, molding) to form the finished components from various specifications of Chinese-origin steel. Certain components are then powder-coated and screen-printed. Many of the Chinese parts would be used to form subassemblies in Vietnam, such as the door assembly, control panel assembly and cavity assembly subassembly, which would later be assembled into the toaster oven. To complete the manufacturing of the toaster ovens, the components and subassemblies are attached, bended, and mounted, then the final assembled ovens undergo function and safety testing. 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). In order 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 and is of the opinion that these Chinese parts 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 parts of the toaster ovens’ housing are manufactured in Vietnam. We note that the EPS packing structure is not part of these toaster ovens and would not be considered in this determination. Thus, from the details submitted, we agree that the country of origin for these toaster ovens would be Vietnam. 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