The country of origin of an electric bread maker.

N342916 October 18, 2024 CLA-2-85:OT:RR:NC:N4:415 CATEGORY: Country of Origin John M. Peterson Neville Peterson, LLP One Exchange Plaza 55 Broadway, Suite 2602 New York, NY 10006 RE:      The country of origin of an electric bread maker. Dear Mr. Peterson: In your letter dated September 25, 2024, you requested a country of origin ruling on behalf of your client, Zojirushi America Corporation. The product under consideration is the same as the one discussed in New York ruling N338945, dated April 4, 2024. Though, your submission indicates that you would like a determination on a different sourcing plan. You state that this electric bread maker, model number BB-CEC20, is currently manufactured in China, and that Zojirushi still intends to move assembly to Thailand and this request follows the new scenario detailed below. The raw materials and parts will be sourced from China, Thailand, South Korea, and Japan, with the bread maker having a substantial Thai-origin parts content. All plastic parts will be injection-molded in Thailand using resins of Japanese, South Korean, and Chinese-origin. Further, a number of metal parts will be formed in Thailand from Chinese-origin stainless steel, to include: the lid case, oven fuse holder, chassis, body, upper bowl shaft, drive shaft, heater guide, pulley nut, and fixed plate. The following steel and aluminum parts will be of Chinese-origin: the upper bowl shell, upper coupler, upper fixed plate, bowl, motor pulley, bowl base, bowl adapter, and the mixing paddle. The printed circuit board assembly (PCBA), which directs operation of the bread maker, will be assembled in Thailand using various Chinese origin microcomponents. The mounting, wave soldering, and testing of the PCBA will all occur in Thailand. Other components will be sourced as follows: Thailand: Switch plate, printed materials, screws, and poly foam. South Korea: Thermistor, bowl gasket, C-ring, U-ring, bracket rubber, gift-box, and carton box. China: Motor, glass window, bearing (up/low), capacitor, hinge pin, foot, heater assembly, power cord assembly, rivet, Bakelite washer, and screws. Japan: Oil seal, long and short belts, TM label, grease, e-ring, wave washer, and pulley plate. All of these components will be assembled in Thailand to form various subassemblies of the bread maker, and the finished product will be subject to final testing, acceptance, and packaging with accessories for shipment to the United States. 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 documentation for this planned scenario and is of the opinion that once the production of these bread makers moves to Thailand as indicated, with many of the parts being manufactured in Thailand, that the remaining Chinese, South Korean, and Japanese sourced components would undergo 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, we agree that when the subject bread maker is being assembled in Thailand, the country of origin for it will be Thailand. Though, as you note it is currently manufactured in China, the country of origin will remain China until the details expressed above are met. 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