MAR-2 OT:RR:NC:N1:102
Ms. Allison Kepkay
White & Case LLP
701 13th Street, NW
Washington, DC 20005
RE: The country of origin of a box fan and the applicability of certain trade remedies under Section 301; Correction to Ruling Number N305760
Dear Ms. Kepkay:
This replaces Ruling Number N305760, dated September 10, 2019, which contained a transposition error. A complete correct ruling letter follows.
In your letter dated August 12, 2019, on behalf of Midea America Corporation of Parsippany, New Jersey, you requested a ruling on the country of origin. A detailed description of the manufacturing process was submitted for our review.
The product under consideration is referred to as a box fan for household use, model FB50-16H.
The production of each unit in this scenario begins by manufacturing the box fan’s structural components in Vietnam using an injection molding process. The structural components consist of the front and rear grills, the top and base covers, the side panels and the fan blade. The assembly process, which also occurs in Vietnam, begins by connecting the power cord to the box fan’s rear grill. The motor, which is of Chinese origin, is then installed onto a protective cover. The electrical switch, the wiring cap and wiring harness, which are of Chinese origin, are connected and the base cover and side panels are then attached to the rear grill. Afterwards, the capacitor is installed onto the top cover and the top cover assembly is installed onto the fan. The assembly continues by fastening the fan blade to the shaft of the motor. The front grill is then inserted and screwed to the side panels and the Chinese control knob is then installed onto the front grill. Upon completion, each unit undergoes various inspections and testing.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
With regard to your request for the appropriate country of origin of the box fan, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means 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” within the meaning of this part. As stated in HQ 735009, dated July 30, 1993, “The country of origin is the country where the article last underwent a ‘substantial transformation’, that is, processing which results in a change in the article's name, character, or use”.
In addition, the court has held that “A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, and use that differs from the original material subjected to the processing.” However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Based upon your description of the manufacturing and assembly operations, which consists of manufacturing structural components of the box fan in Vietnam and combining these components with Chinese components, the nature of the processing performed in Vietnam is one in which the foreign components lose their separate identities to become a new article, i.e., box fan. Thus, the country of origin of the box fan will be Vietnam. Accordingly, the box fan is not subject to the Section 301 trade remedy.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division