The country of origin of gas ranges from Vietnam

N340198 June 6, 2024 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 from Vietnam Dear Ms. Johnson: In your letter dated May 17, 2024, you requested a country of origin ruling on behalf of your client, Midea Consumer Electric (Vietnam) Co., Ltd. The product under consideration is a oven series identified as Midea model number 30NEG4GF70 (also referred to as the “Oven”). The Oven is a 30-inch rear-controlled free-standing oven, including 4 burners. The stove is controlled by a plug valve, and the cavity is controlled by an electric control panel, which is used to light the input gas and transfer the heat to the air into the oven, where it heats food. It is a single-function oven with a rectangular front door designed for household use. Each 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, installation user manual, baking rack, or burner cap. 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. It is stated that the production in Vietnam of the completed Oven consists of the production of several important subassemblies and components, as well as the assembly of the final Oven. The Vietnam-produced assemblies/subassemblies include the door assembly, small cabinet door assembly, solenoid valve assembly, air chimney assembly, burner assembly, foot support assembly, control panel assembly, and control assembly. The Vietnam-produced components include control panel bracket (left and right), cavity front plate, cavity left side plate, cavity right side plate, cavity bottom plate, cavity back plate, side cover, cavity front plate support, kitchen range board bracket (front), drawer baseplate, drawer liner cover, control panel support (left and right), insulation plate, and door body support (cover, left and right). The balance of materials, components or parts are imported from China. The entire production process requires approximately 220 professionally trained workers. The workers involved in the production of the ovens in Vietnam include electrical engineers, mechanical engineers, product engineers, test engineers, process engineers, and line workers who are specially trained to ensure the product’s quality and specifications. The plant floor is divided into the components workshop (stamping, powder coating and enameling) and the main assembly workshop (assembling). Many non-Vietnam originated parts and components are used to form subassemblies, which would later be assembled into the finished oven. The production involves stamping, bending, and degreasing, various cutting, pushing, punching, and molding operations. After the component itself is created, enameling and powdercoating processes must be completed. Furthermore, the subassemblies are created by assembling a significant number of components (not identifiable on their own as oven components or assemblies) through processing operations requiring the use of screw drivers, torque spanners, air glue drivers, AC power supplies, and more. 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). 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. Based on the information presented in the scenario, we find that the manufacturing process performed in Vietnam with respect to the ovens in the scenario does constitute a substantial transformation of the imported components and parts into "products of" Vietnam. The manufacturing process in Vietnam involves complex and skilled operations, which is more than a simple assembly, and transforms the non-originating components and parts to make the subassemblies, and eventually to produce the finished ovens. 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. We agree that the country of origin for this Oven would be Vietnam. 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