The country of origin of space heaters from Vietnam.

N342861 October 16, 2024 CLA-2-85:OT:RR:NC:N4:415 CATEGORY: Country of Origin Nate Bolin K&L Gates, LLP 1601 K Street Northwest Washington, DC 20006 RE:      The country of origin of space heaters from Vietnam. Dear Mr. Bolin: In your letter dated September 25, 2024, you requested a country of origin ruling on behalf of your client, Midea Consumer Electric (Vietnam) Co., Ltd. The products under consideration are household, fan-forced space heaters. The NF15 model comes in two different colors, black, current customer model number PSH08F1ABB, and white, current customer model number PSH08F1AWW. The NFA20 model comes in white under the current customer model number HB-211T. These space heaters operate by using heating wire assemblies that heat up the air that passes over them created by the internal fan. Models NF15 and NFA20 have very similar parts and production processes. The primary difference between the two models is their outer shell shape (generally square versus rounded) and control knob location. The control knobs for the NF15 model are located on the top of the heater whereas they are on the front cover of the NFA20 model. The heaters are completed in Vietnam through a three-stage process. The first stage involves forming the front and rear exterior covers/shells by injection molding in Vietnam. The next stage is the production of the heating wire assembly by a third party in Vietnam from Chinese origin raw materials. The final stage is also performed in Vietnam and includes assembling the body, heating wire assembly, and other components into the finished heaters, testing, and packaging. 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 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. In addition, the heating wire assemblies, which are essential parts, are manufactured in Vietnam. Thus, from the details submitted, we agree that the country of origin for these household, fan-forced space heaters 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 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