The country of origin of a freeze-on-demand food mixer

N350310 July 17, 2025 OT:RR:NC:N4:410 CATEGORY: Origin Matthew Bock Bock Trade Law 53 State Street, Suite 500 Boston, MA 02109 RE: The country of origin of a freeze-on-demand food mixer Dear Mr. Bock: In your letter dated June 16, 2025, on behalf of your client ColdSnap, Corp., you requested a country of origin ruling on a freeze-on-demand food mixer. In your submission, you note that, the freeze-on-demand food mixer, also referred to as the ColdSnap System, is a smart, connected, food-processing, mixer-freeze appliance with complex real-time control and remote monitoring, that can be used to create single-serve frozen desserts (ice cream, smoothies, lattes, protein shakes, cocktails, etc.) using proprietary pods. The ColdSnap System integrates a refrigeration system, motor assemblies, user interface, and a variety of printed circuit board assemblies (PCBAs), including a main control board. You present the following manufacturing process: ColdSnap, Corp. will import the PCBAs into the United States, from China or from another third country. These PCBAs have no embedded functionality without the software, programming, configuration, and testing required to actually control and operate the ColdSnap System. Once the PCBAs are imported, proprietary software developed by ColdSnap, Corp.’s U.S.-based engineering team will be permanently loaded onto the PCBAs. After programming, the cellular connection on the PCBAs will be provisioned. Provisioning in this context refers to registration of the cellular module with ColdSnap, Corp.’s contracted cloud services provider and cloud management account. At this point, the embedded software enables all core ColdSnap System functions, including user interface, pod recognition, refrigeration cycle control, telemetry communication, and over-the-air software updates. Following testing, the programmed, active, and functional PCBAs will then be sent to China. You further note that the PCBAs are manufactured in China (or in a third country), while the board layout, engineering designs, and board logic are entirely developed in the United States. You state that, from this point forward, the U.S.-origin, programmed, configured, and tested main control board PCBA, which directs all of the individual subassemblies and defines the character and functions of the ColdSnap System, is also the element that imparts the essential character or essence of the ColdSnap System. It dictates the functioning of the entire unit, ensures its connectivity/interface with the user, and is, in effect, the "brain" of the ColdSnap System. It is the most expensive element of the ColdSnap System, when the value of the software is accounted for. None of the other components could function and/or contribute toward the ultimate objective of the ColdSnap System, without the programmed and finished main control board PCBA. You described the manufacturing process for the ColdSnap System in China which includes producing the components and material and then assembling them into the following subassemblies. These subassemblies are the PCBAs, slide subassembly (motor and drivetrain to mix pod contents), evaporator subassembly (cold surface to cool outside of pod), rivet shear subassembly (opens pod when software detects product is done), refrigeration subassembly (delivers cold refrigerant to evaporator), and frame subassembly (structure of appliance). After finishing the subassemblies in China, the merchandise undergoes final assembly and testing, also in China. The Bill of Materials in your submission shows that the ColdSnap System is comprised of approximately 31 components. All are of Chinese-origin except the cooling fan and condenser, which are not produced in China. You summarize the operations performed in the making of the subassemblies and final assembly in China as follows: PCBA Populate various electrical components onto a PCB via the surface mount technology (SMT). Slide Subassembly Cast slide plate and belt retainer Install bearings, fasten motors, install scanner, and test Evaporator Subassembly Extrude evaporator body Braze end covers, laser weld handles, and braze copper tubes Test (leak and pressure drop) Rivet Shear Subassembly Stamp metal frame and install mounting hardware Injection mold plastic parts Final assembly and test Refrigeration Subassembly Attach major components to frame Bend, braze, test, and install, and couple copper tube subassemblies Evacuate tubing, fill, and test Apply insulation, conduct final test Frame Subassembly Stamp metal frame and install mounting hardware Injection mold plastic parts Final assembly and test Plastic Housings Injection molding and flashing removal Inspect and screen-print logo Final Assembly and Testing Install frames Install wiring harnesses; Install and connect power supply, PCBA’s, QR scanner, and touch screen Install and align slide assembly Calibrate and test Install housings, apply stickers, final packaging In light of the above, you propose that the Chinese-origin main control board PCBA is substantially transformed by the programming in the United States. Accordingly, you state that country of origin of the U.S.-programmed main control board PCBA will impart the essential character and dictate the country of origin of the finished ColdSnap System as a whole, i.e., the country of origin of the ColdSnap System will be the United States. We disagree. When determining the country of origin, 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). 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. Based upon the information presented, it is the opinion of this office that the PCBAs manufactured in China do not undergo a substantial transformation as a result of the software loading, provisioning onto the PCBA, testing and other operations in the United States. The PCBAs retain their identity after this processing. They also have a pre-determined end use as PCBAs before such processing. These Chinese-origin PCBAs are then shipped back to China for final assembly with the other subassemblies to complete the finished product. Moreover, nearly all or the overwhelming majority of the components and subassemblies, including the PCBAs, are manufactured in China. The manufacturing processes in China include various operations, such as metal die casting, bending, stamping, plastic molding injection, SMT, laser welding, testing, etc. Any non Chinese-origin components used in the manufacture of the ColdSnap System lose their identity and are substantially transformed when they are combined with the other Chinese components and Chinese subassemblies in China through a series of complex operations. We find that such processing substantially transforms the components into the ColdSnap System food mixer, creating a new and different article of commerce with a distinct character and use that is not inherent in the individual components. Therefore, the country of origin for the ColdSnap System is China. 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 Michael Chen at michael.w.chen@cbp.dhs.gov.. Sincerely, (for) James Forkan Acting Director National Commodity Specialist Division