MAR-2 OT: RR: NC: N4:410
Ms. Elizabeth McGuffin
Dollar General
100 Mission Ridge
Goodlettsville, TN 37072
RE: The country of origin of LED flameless candles
Dear Ms. McGuffin:
This is in response to your letter dated March 10, 2022, requesting the classification and country of origin determination for the LED flameless wax candles.
The merchandise under consideration is identified as the Battery Operated Wax LED Candle (the “Wax LED Candle”). The finished Wax LED Candles are in two sizes, i.e., four inches tall by three inches in diameter (3x4) and six inches tall by three inches in diameter (3x6). The LED Wax Candles each are comprised of a wax candle (shell) and an LED light base, and are packaged in a PVC (plastic) shell with color paper label. The LED light base consists of a round plastic base with the LED light attached (also referred to as faux wick) in the middle.
The submitted materials indicate that the raw wax, the plastic light base and the faux wick (LED lamp incorporated into a plastic stick) are from China (Chinese origin), and the PVC shells (for packaging) and the color paper label are made in Vietnam.
Your request for classification ruling for the Wax LED Candle will be addressed separately in ruling N325396.
You present a manufacturing processing scenario for the country of origin determination of the Wax LED Candles in Vietnam. The scenario describes the manufacture process as follows:
The raw wax material is imported from China into Vietnam where the wax is melted, cooled and broken down into powder.
The wax powder is extruded into a mold to create the shape and patterned design of the LED candle base, which is pillar candle shell (“form”).
The faux wick (LED lamp stick) is inserted into the plastic LED light base and then the complete LED light base is inserted onto the pillar candle shell.
The assembled LED Wax Candle is inserted into the clear PVC package shell.
The LED candles are tested, packaged and packed prior to being shipped to the United States.
Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)), defines "country of origin" as the 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”.
In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative.
We are of the opinion that, although some of the components, such as the wax pilar candles (shells) and the PVC package shells, are produced in Vietnam and the manufacturing process occurs in Vietnam, the LED lamp (LED base with the faux wick of LED lamp incorporated) is the single most important and critical component. It possesses the predetermined end-use for the making of the LED Wax Candles. The use of the article has already been pre-determined upon importation from China to Vietnam. The assembly operations performed in Vietnam do not substantially transform these Chinese originating components into Vietnamese products. The assembly in Vietnam of the individual components to produce the finished LED Wax Candles does not create a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Vietnam. The key component of the LED Wax Candles, e.g., the LED base with the LED lamp, does not lose its individual identity as a result of the assembly process in Vietnam (see e.g., N309443, dated March 4, 2020). Therefore, the country of origin of the LED Wax Candles is China.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division