The country of origin of a forced air heater

N346185 March 21, 2025 OT:RR:NC:N5:121 CATEGORY: Origin Stacia Keegan RIM Logistics 1303 Jack Ct Barlett, IL 60103 RE: The country of origin of a forced air heater Dear Ms. Keegan: In your letter dated February 21, 2025, you requested a country of origin ruling on a propane forced air heater on behalf of GHP Group. You presented documents/slides showing the production work done in Vietnam. The merchandise under consideration is described as a propane forced air heater, model number LPFA60TS. This portable air heater is fueled by propane and incorporates a motor driven fan. In your request you describe a scenario in which the safety valve, regulator, and hose are purchased in Vietnam, and all other components, including the motor, ignition wire and needle, PCB, thermocouple, thermocouple wire, power cord, and thermal switch are purchased in China and shipped to Vietnam for assembly into the finished forced air heater. You present a manufacturing process scenario in which the factory in Vietnam manufactures the steel inner and outer tubes, the base, and the bottom plate, assembles the base and bottom plate together, and then powder coats the outer tube, base, bottom plate, and rear guard. Next the factory in Vietnam assembles components that originate in both China and Vietnam into those manufactured pieces to manufacture the propane forced air heaters. Your production description notes that the manufacturing process includes punch forming, welding, painting, assembling, connecting, and testing. When determining the country of origin for purposes of applying current trade remedies under Section 301 and Section 232, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter 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). Based on the documents presented, we find that the majority of the parts or components are from China, especially the components including the ignition, motor assembly, and PCB, and the majority of the value comes from China. The parts manufactured in Vietnam enclose and enhance these Chinese components. Further, although the Vietnam assembly process involves some complex operations to an extent, the majority appear simple in nature, such as punch forming, welding, painting, assembling, connecting, and testing. As the Chinese components undergo a simple assembly process to form the completed forced air heater and are not changed to the point that they emerge with a new name, character, or use that is different from what they possessed prior to processing, it is our opinion that they are not substantially transformed in Vietnam. Therefore, it is our view that the country of origin of the propane forced air heater, model number LPFA60TS is China for purposes of current Section 301 and Section 232 duties. 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 Jennifer Jameson at jennifer.d.jameson@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division