The country of origin of positive temperature coefficient (PTC) fan heaters

N351597 August 15, 2025 OT:RR:NC:N4:410 CATEGORY: Country of Origin Nate Bolin K&L Gates LLP 1601 K Street, N.W. Washington, DC 20006 RE: The country of origin of positive temperature coefficient (PTC) fan heaters Dear Mr. Bolin: In your letter dated July 22, 2025, on behalf of your client Midea Consumer Electric (Vietnam) Co., Ltd. (“MVN”), you requested a country of origin determination ruling for fan heaters for the purposes of applying current trade remedies. The merchandise under consideration is identified as model numbers NTH15-22GR, NTH15-22ER, and NTH15-24HR, positive temperature coefficient (PTC) Fan Heater II (“PTC Heaters II”). The PTC Heaters II are PTC household fan heaters packaged for sale to individual consumers. The PTC Heaters II are sold individually with a remote control in single, packaged units. They operate by using a PTC heating element to heat air as it passes over the PTC heating element. The fans in the PTC Heaters II then circulate the heated air to the room or other surrounding area where the PTC Heaters II are located. The oscillating mechanism in the PTC Heaters II aids the fan blade in distributing the heated air throughout the surrounding area. Except for the minor variations on the color, accessories and shape, all such units will use the same platform and share the same production process. You present the following manufacturing process scenario, in which the PTC Heaters II are produced in Vietnam using raw materials and components originating from Vietnam, Thailand and China. The bill of materials (BOM) indicates that Vietnam accounts for the majority or a significant portion of the production costs of the PTC Heaters II. Manufacturing process details in Vietnam are outlined as follows: The PTC heating element of the PTC Heaters II is manufactured by a third-party supplier of MVN in Thailand from various raw materials. The production process in Thailand specifically includes adhering the ceramic sheet and the conductive thermal strip. In Vietnam, the manufacturing process is undergone through a manufacturing and assembly process comprising two main stages. In the first stage, key components are manufactured in Vietnam from various raw materials. MVN will manufacture the front and rear shells, display window, bottom cover, base, and oscillator support for the PTC Heaters II and the air duct cover for the NTH15-22GR and NTH15- 24HR models from raw materials via plastic injection molding operations. In the second stage, the body and other components are made and assembled. MVN will place the Vietnamese-produced body components, the Thai-produced PTC heating element and the remaining components from China on the main assembly line to produce the finished PTC Heaters II. The final production process consists of numerous steps and can generally be divided into three different phases: (1) manufacturing/assembly, (2) inspection and testing, and (3) packaging. Each step is performed by different workers in an assembly line. 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). This office notes that the products in this ruling are the same as the PTC Fan Heaters I in NY N351596, dated August xx, 2025 [date will be corrected when available]. The manufacturing process scenarios are also similar except that, in the instant scenario, the heating element will be produced in Thailand. We reviewed the provided assembly process flow charts and other materials in the submission, and is of the opinion that the Chinese-origin and the Thai-origin components undergo processing in Vietnam that is sufficiently complex and meaningful as to result in a substantial transformation, such that these components lose their individual identities and become an integral part of a new article, possessing a new name, character, and use. In addition, essential parts are manufactured in Vietnam. Accordingly, from the details submitted, we agree that the country of origin for the PTC Heaters II 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 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