MAR-2 OT: RR: NC: N4:410
Mr. James Sawyer
Faegre Drinker Biddle & Reath LLP
191 N. Wacker Drive
Chicago, IL 60606
RE: The country of origin of kitchen waste disposers
Dear Mr. Sawyer:
This is in response to your letter dated January 6, 2021, on behalf of your client Moen Incorporated, requesting a country of origin determination for kitchen waste disposers.
The merchandise under consideration is referred to as the Kitchen Waste Disposers (the “Disposers”). The Disposers are designed and engineered in the U.S. and will be produced in Cambodia. They are electrically powered and designed to meet U.S. electrical standards, which are to shred food waste and debris into small pieces that can then pass through to the kitchen plumbing. The Disposers are installed under a kitchen sink with a leak-proof seal to the sink’s drain, incorporate an electric motor and impeller housed in a plastic chamber to grind the food waste to pulp, and then incorporate another leak-proof seal that is connected to the sink trap that allows the shredded waste to be discharged.
The Disposers are manufactured in Cambodia using Cambodian-origin, American-origin and Chinese-origin component parts. Approximately 50% of the cost of the finished Disposer is provided by Chinese-origin components, 4% U.S.-origin parts, and the remaining 45% attributable to Cambodian manufactured components and assembly costs.
Cambodian-origin component parts include:
Drainage sub-assembly, snap and lock mount, sink flange, snap support ring, splash guard and splash guard, support mount ring, stopper and stopper seal, hopper, lower shell, packaging materials and certain labels.
American-origin component parts include:
Bore bearing, carbon brush, wire cap, fiber oil and turntable glue.
Chinese-origin component parts include:
Drain housing, motor stator, end bell, armature, turntable, elastomers, O-ring, nuts and various labels, plastic insulator, and inspection plate.
The assembly operations in Cambodia are described as follows:
(1) Manufacture of a mate-able snap and lock mounting assembly to properly and securely attach the disposal to the kitchen sink with a leak-free connection, including the on-site manufacture in Cambodia of the sink flange, mount ring, support ring, splash guard, and stopper. These metal components are produced at the Cambodian factory from semi-automated metal stamping and mounting machines that produce the seal and leak-free connection. There are 12 stamping machines on-site ranging in size from 16 ton to 100 ton. Where the various metal components are stamped, burrs and defects are manually removed by cutting and trimming the metal components and a final quality review is performed.
(2) Manufacture of the injection molded plastic shell housing, sound insulation, and rubber splashguard components that provide protection and additional sound insulation, along with secure seals to the mounting assembly and drain to prevent leakage. The shell/housing provides the disposal with its shape and functionality for incorporation and attachment to a kitchen sink.
The plastic molding process consists of numerous steps, including resin loading, injection molding, de-molding, removal of burrs, scraping, and final quality review prior to incorporation into the finished disposal. The plastic injection molding process creates the disposal’s shell/housing, drain subassembly (step 3 below) and hopper (step 4 below), each of which are essential for the kitchen waste disposers to safely function, as well as meet standards established by the Underwriters’ Laboratory (“UL”).
(3) Manufacture of the injection molded main drain assembly, which directs the discharged waste away from the appliance and into the kitchen sink’s plumbing trap. The plastic shell/housing (step 2 above), main drain assembly, and hopper (step 4 below) are produced on-site in Cambodia from nine specialized plastic injection molding machines, ranging in size from 120 ton to 380 ton.
(4) Manufacture of the disposal’s hopper with high strength performance resin from on-site injection molding machines. The hopper is part of the grinding chamber and must meet tight tolerances for the diameter that encases the motor and turntable impeller (steps 5 and 6 below). The hopper provides the necessary storage to hold the waste close to the impeller and safely and properly change the waste to pulp. This allows the waste to flow through the disposal to the drain pipe assembly (step 3) without causing blockage.
The hopper also contains the waste during the pulping process to eliminate potentially dangerous fragments from being discharged. The hopper connects with the snap and lock mount (step 1 above) to ensure the disposal can be securely mounted under the kitchen sink with a leak-free seal. Further, a dishwasher drain plug is also installed on the hopper to facilitate connection to a dishwasher.
(5) Assembly of the electric motor to power the finished appliance. The motor is assembled in Cambodia from Chinese-origin armature, stator, and end bell subassemblies that incorporate a U.S. origin carbon brush, along with local Cambodian wiring. The completed motor is then attached to the turntable impeller (step 6 below), and incorporated with the Cambodian produced hopper (step 4) which encases the operational motor and turntable. The subassembly is vacuum tested, locked-rotor tested, motor speed tested, leakage tested, and amps and vibration tested. For operator safety, the motor is secured with the turntable assembly (step 6) within the hopper (step 4) before magnetizing.
(6) Cambodian precision mounting, assembly, and gluing of the Chinese turntable impeller and U.S.-sourced bearings, along with the Chinese origin drain housing to ensure proper rotation of the turntable. The Cambodian assembled electric motor (step 5) is carefully combined with the drain housing, turntable, and hopper (step 4) in Cambodia to create the disposal’s full movement subassembly. Proper assembly is essential to ensure uninhibited rotation. The subassembly then undergoes a further transformation in Cambodia to become an operational motor via a magnetization process that actuates the magnets to enable the armature to work after final assembly.
(7) With the completed motor/turntable subassembly encased within the hopper (steps 4, 5, and 6), shell/housing (step 3), main drain assembly (step 2), and metal stamped snap and lock assembly (step 1), along with additional components and wiring, the disposals undergo detailed and technical final assembly by trained personnel. Until all of these subassemblies are carefully produced and assembled, there is nothing that resembles or can operate as a functional disposal.
(8) Following assembly, fundamental product and safety tests are completed to ensure, among other things, a leak-free seal, smooth operation of the completed unit, minimal vibration and noise, and that all requisite UL electrical and safety requirements are met. The assembled unit is then further tested to ensure effective operation, including vacuum testing, locked-rotor testing, motor speed and leakage testing, operation noise testing, amps and vibration testing, with adjustments made, as needed.
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.
Based on the information submitted, the significant amount of components and assemblies are made in Cambodia. The Chinese (and American origin) materials and components are imported into Cambodia where they are manufactured into different parts or subassemblies, which are ultimately assembled into the subject Disposers. The non-Cambodia origin components lose their identity and are substantially transformed when they are combined with the Cambodian components and assemblies in Cambodia. We find that the manufacturing processing performed in Cambodia does constitute a substantial transformation of the imported materials and components into "products of" Cambodia. It creates a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Cambodia. Therefore, the "product of" requirement has been satisfied. It is of the opinion of this office that the country of origin for the Disposers will be Cambodia.
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