The country of origin of gas ranges

N335581 October 19, 2023 OT:RR:NC:N4:410 CATEGORY: Origin Catherine Johnson K&L Gates LLP 1601 K Street NWWashington, DC 20006 RE:  The country of origin of gas ranges Dear Ms. Johnson: In your letter dated September 27, 2023, on behalf of your client Thai Toshiba Electric Industries Co., Ltd. (TTEI), you requested a country of origin ruling on gas ranges. The merchandise under consideration is a gas range series, which includes model numbers COS-GRC305KTD, 30NTG5R074-P(*), 30NTG5R074-M(*) and 30NTG5R074-S(*). Depending on the model within the series, packaged accessories may include the user manual, installation manual, wire rack, and extension rack. The models within the series share the same functions and platform, but vary slightly because they are sold into different markets with different color schemes, different accessories or slightly different features. The primary distinctions are in the handle shape, knob shape, or other minor appearance differences. However, the models all use the same platform and are produced according to the same process detailed below, with only one or two minor parts that may vary between models in the series. You present a manufacturing process scenario, in which the factory in Thailand assembles the range’s materials and components sourced from China, Thailand, Italy and the United States, and its final processing is undertaken in Thailand. The operations in Thailand involve the manufacturing of certain components including the PCBAs (printed circuit board assembly), the processing of more than 350 components and materials during a series of subassembly activities, final assembly of the range, and testing and inspections. The workers involved in the production of the ranges in Thailand include electrical engineers, electronics engineers, mechanical engineers, product engineers, test engineers and line workers who are specially trained to ensure the product’s quality and specifications. The production operations begin in Thailand where TTEI: (1) manufactures various metal components of the range through stamping, bending, and degreasing operations; (2) manufactures certain plastic parts via injection molding; and (3) manufactures the power supply board PCBA. Twenty different metal parts and components, such as drawer heat shield, different burner plates, vent pipe, cavity corner cover, hinge brackets, fan blades, air duct assembly, etc., are made in the Thailand factory. Numerous electronic components are incorporated onto the printed circuit board (PCB) to produce the PCBA using a process of SMT (surface mount technology) in Thailand. SMT is a method of manufacturing PCBAs whereby components are soldered to the surface of the PCB rather than placed into holes on the PCB. Numerous testing and inspections are also conducted in each step during the manufacturing of the PCBAs. Plastic parts, including the power board brackets that are used for fixing the PCB to the product, are produced at the plastic injection shop in Thailand using the plastic injection molding process. This includes the production of foam packaging. The factory in Thailand uses the parts and components made in Thailand and imported from other countries to produce the subassemblies for the final assembly to make the finished ranges. The production processes include the production of the base plate assembly, cavity assembly, cooling box assembly, back cover assembly, door assembly, drawer assembly, control panel assembly, cooling fan assembly, etc., which involves nearly 70 distinct process steps. Once built, the sub-assemblies are combined with other parts sourced from China, Thailand, Italy and the United States, and then sent to the main assembly line for production of the finished range according to the process below, which consists of 76 distinct steps, generally divided between (1) assembly/manufacture, (2) testing, and (3) packaging. A series of tests and inspections are followed, which include visual check, air leak test, electrical safety test, function test, appearance check, ignition needle check, knob check, valve check, fan check, etc. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. The "country of origin" is defined in 19 CFR 134.1(b) 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' within the meaning of this part." The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993). Based on the information submitted, the factory in Thailand produces a fair number of components, including the making of PBCAs via the SMT process and the plastic parts and components via the plastic injection molding process. These Thailand originated parts and components are assembled with the imported parts and components in Thailand where they are manufactured into different subassemblies, which are ultimately assembled into the subject ranges. We find that the processing performed in Thailand with respect to the ranges in the scenario does constitute a substantial transformation. The manufacturing process in Thailand involves complex and skilled operations with numerous processing steps, which is more than a simple assembly, and transforms the non-originating components and parts to produce the finished ranges. It creates a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Thailand. Thus, it is of our opinion that the country of origin for the gas cooking ranges will be Thailand. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 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, please contact National Import Specialist Michael Chen at michael.w.chen@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division