The country of origin and applicability of Section 301 remedies regarding a vacuum pump

N344081 December 13, 2024 OT:RR:NC:N1:102 CATEGORY: Origin Lynlee Brown Ernst & Young LLP 4365 Executive Drive, Suite 1600San Diego, CA 92122 RE:  The country of origin and applicability of Section 301 remedies regarding a vacuum pump Dear Ms. Brown: In your letter dated November 15, 2024, you requested a country of origin ruling regarding a vacuum pump on behalf of your client, Zhejiang Value Mechanical & Electrical Products Co., Ltd. Technical information was submitted with your request. The item for consideration is described as a vacuum pump designed for users to attach hoses or fittings for efficiently extracting air or gases from sealed systems. The subject pump consists of nine functional component groups: motor, printed circuit board assembly (PCBA), housing, bottom plate, bottle oil, oil tank, pump body, air intake module, and other components. The integrated motor powers the pump by converting electrical energy into mechanical rotation to create a vacuum. The created vacuum facilitates the movement of fluids or gases through the system. The motor is comprised of several sub-components. The stator and rotor are manufactured in Thailand, and the remaining components, including, but not limited to capacitors, a fan, fasteners, springs, and seals are manufactured in China. The PCBA is manufactured in China and controls the electrical operations, signal processing, and power management of the pump. Furthermore, the housing is manufactured in China and provides physical protection, structure, and support for the internal components. The bottom plate, manufactured in China, acts as the base to stabilize the pump, reduces vibrations, and ensures mechanical support. Additionally, the bottle oil from China lubricates, cools, and ensures smooth operation of the pump’s moving parts. The oil tank from China stores pump oil and filters contaminants. It also provides oil level visibility to the user. The pump body is manufactured in China and generates suction and a vacuum using the mechanical rotation powered by the motor. The air intake module from China regulates airflow and connects the intake to the pump. Additional components from China are integrated into the vacuum pump and include, but are not limited to wiring, screws, and other small items. In part, these components function to support the assembly and complete minor structural connections. In your submission, you described a production process comprised of 45 discrete steps. The manufacture of the Chinese components accounts for 18 steps. First, brackets are cleaned by ultrasonic bath to ensure no foreign materials are present. After washing, the brackets are rinsed and dried. Next, the fore pump stator is milled by a machining center and cleaned by ultrasonic bath, rinsed, and dried. Following that, the rear pump stator is milled to precise dimensions, inspected, and the process holes are sealed with glue. At that point, the pump rear cover is milled, cleaned by ultrasonic bath, rinsed, and dried. Then, the rear cover is polished, holes are reamed, and the gas-ballast connector is cleaned, sealed, and fit into position. After that, the bottom board is milled, deburred and cleaned in an ultrasonic bath. The oil tank and lamp cover are cleaned in an ultrasonic bath, rinsed, and dried. The lamp cover is then glued into the oil tank groove. The sight glass cover is milled and subsequently engraved with text using a laser. Using automated equipment, conformal coating is sprayed on the indicator board. Additionally, the oil tank cover is cleaned by ultrasonic bath, rinsed, and dried. The air intake valve body is sealed with screws and glue. Finally, the electronic starter terminals are crimped and inserted into sleeves using terminal machines. The manufacture of the stator and rotor, combined with the final assembly of all components in Thailand, consists of 27 steps. To begin, an oil seal and bearing is press-fit into the bracket. Next, the motor housing is heated, fitted on stator, and wires are threaded through the outlet hole. The stator and bracket assemblies are press-fit together using pressing equipment. Bearings are press-fit into the rear cover and the rotor shaft is added. After that, rotor components are assembled into the motor assembly using three bolts and the motor is tested and inspected for defects. An oil seal is press-fit into the rear cover. Following that, the motor is assembled to the pump stators, rotors, vanes, and covers. The gas-ballast wiring assembly is completed by soldering wires to pads and heat-shrinking tubing to ensure firm connections. At that point, the bottom board is laser marked, and rubber feet are installed. Next, the oil drain valve and knob are assembled using screws. The air intake joint is assembled by fitting an O-ring, pull strap, and snap ring into a copper cap. In addition, the oil tank assembly is completed by securely installing a drain valve, sight glass, light-emitting diode (LED) board, and nozzle. Lead wires are crimped into terminals using terminal machines. Oil bottles are then filled and heat-sealed with tin covers. The bottom board, fan, and junction box bracket are assembled by fitting the fan blade with air guide and fastening with screws. Then, the controller and starter are installed into the junction box with screws. Assembly of the oil tank cover consists of combining the assembled nozzle and plate with the cover. Pins, O-rings, and valve bodies are installed and fastened into the pump. Gas-ballast components are assembled and mounted onto the right-side panel. For the front-side panel assembly, the press block is aligned and secured with screws. The right-side panel, capacitor, and wiring assembly is completed by connecting the capacitor and wiring it to the motor and driver. At that juncture, the front, rear, and side panels are fastened together, and the pump is powered on for testing. In the next step, the oil tank is filled, and the pump is run on a test bench. Following that, the left-side panel, top panel, and handle are fastened together with screws. The pump then undergoes factory testing, oil draining, and labels are applied. Finally, the pump is cleaned, packaged in a sealed box. When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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). CBP has historically held that the electric motor, which is principally comprised of a stator and rotor, imparts the essence of a pump because it turns the impeller and moves the fluid through the pump (see H303864, December 26, 2019; N316014, December 17, 2020; N323054, December 23, 2021; N324601, March 29, 2022). Additionally, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article. In the instant scenario, the stator and rotor are manufactured in Thailand and assembled with other Thai and Chinese components to complete a finished vacuum pump. Although the articles imported from China do not undergo a physical change, the assembly operations in Thailand are more complex than simple assembly. In total, there are various distinct assembly steps that require a level of precision that goes beyond simple assembly. Based on your description, the sum of the manufacturing of the stator and rotor and the final assembly operations that produce a motorized pump in Thailand constitutes a substantial transformation. The individual components lose their separate identities and become a new article, i.e., vacuum pump. As such, we find that the country of origin for Section 301 purposes is Thailand. Therefore, the vacuum pump is not subject to additional duties pursuant to Section 301 upon importation into the United States. 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 Paul Taylor at paul.m.taylor@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division