The country of origin of an electric range from Vietnam.

N340202 June 7, 2024 CLA-2-85:OT:RR:NC:N4:415 CATEGORY: Country of Origin Catherine A. Johnson K&L Gates, LLP 1601 K Street Northwest Washington, DC 20006 RE:      The country of origin of an electric range 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 standard electric range with four cooktop burners and a 30-liter capacity oven. The burners will be operated by four corresponding control knobs and the oven by a control panel. The specific range that is subject to this request is model number 30NEE4RF70, but you indicate there are additional customer-designated model numbers based on the specific customer and the range’s color of white, black, or stainless steel, and these models all use the same platform, with only one or two parts that may vary between models in the series. The provided documentation states that this range would be assembled in Vietnam from components sourced from China and Vietnam, with the bulk of the parts to construct the range being sourced from China. Per your submission, various key assemblies, sub-assemblies, and components will be produced in Vietnam. They would include the following: door assembly, small cabinet door assembly, energy regulator assembly, foot support assembly, kitchen range board assembly, control panel bracket (left and right), cavity front plate, cavity top plate, cavity left side plate, cavity right side plate, cavity bottom plate, cavity back plate, side cover, door assembly support plate (left, right, upper and down), power cord cover, drawer baseplate, drawer liner cover, control panel support (left and right), and insulation plate. The manufacturing process for the metal parts in Vietnam include a series of steel stamping operations, including various stretching, cutting, blanking, bending, pushing, punching, and molding processes. The steel sheet plate used will be of Chinese origin. After stamping and metal working processes, certain components are powder coated and enameled in Vietnam. In addition, the kitchen range board assembly, door assembly, small cabinet door assembly, energy regulator assembly, and foot support assembly will all be produced in Vietnam. We note that many of the parts purchased from China will be used to form subassemblies, which will later be assembled into the respective range. To complete the manufacturing of this range, pneumatic screwdrivers would be primarily utilized. 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 we agree that this request is similar to the one recently issued to your client under New York ruling N338935, dated April 2, 2024. As such, we are of the opinion that the Chinese components 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. Therefore, from the details submitted, the country of origin for this electric range would also 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 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