MAR-2 OT: RR: NC: N4:410
Mr. Mark Philcox
Dyson Technology Ltd.
Tetbury Hill
Wiltshire, SN16 0RP
United Kingdom
RE: The country of origin of vacuum cleaners
Dear Mr. Philcox:
This is in response to your letter dated December 14, 2021, requesting a country of origin determination for vacuum cleaners.
The merchandise under consideration is identified as the Dyson V8 Vacuum Cleaner (the “Vacuum Cleaner”). The model presented is a cordless vacuum cleaner designed for household use, with a self-contained motor. The vacuum’s power is 350W, and its dust cup capacity is 0.54L.
In your request, you suggest that the Vacuum Cleaners are classifiable under subheading 8508.11.0000, Harmonized Tariff Schedule of the United States (HTSUS). We agree.
The applicable subheading for the Dyson V8 Vacuum Cleaner will be 8508.11.0000, HTSUS, which provides for “Vacuum cleaners, parts thereof: With a self-contained electric motor: Of a power not exceeding 1,500 W and having a dust bag or other receptacle capacity not exceeding 20 l.” The rate of duty will be Free.
It is stated in your submission that four sub-assemblies are imported into Mexico pre-assembled. They are the Battery Pack Assembly, Production Motor Assembly, Brushbar Assembly and Fluffy Head Assembly.
The Battery Pack comprises lithium-ion cells from Thailand, which are encased in molded plastic, with a printed circuit board (PCB) and power connectors.
The Production Motor Assembly is made at Dyson’s factory in Singapore, and consists of the motor and a PCB which is screwed to a plastic mounting.
The other key components, such as the molded plastics, are predominantly Malaysia origin, and are imported into Mexico as loose components. Minor components such as screws, bristles, and glue are a mixture of Singapore, Thailand and China origin. Only the printed labels are sourced locally in Mexico.
These imported individual loose components are assembled into the following sub-assemblies and eventually combined with the preassembled subassemblies to produce the finished Vacuum Cleaners in Mexico: the Main Body Assembly, Mini Motorhead, Extension Hose, Docking Assembly, Motorhead 50W Brushed Assy, Wand Assembly, Bin Assembly, Combination Tool, Stubborn Dirt Brush, Soft Dusting Brush, Cleanerhead Assembly, and Brushbar Assembly.
The final product performance testing is conducted to ensure the product performs to the specific required standard.
The provided bill of materials also lists the subassemblies and components with their classifications in the HTSUS that are used in the production of the finished Vacuum Cleaners, which include:
3506.10
3910.00
3923.21
3926.90
4016.93
4819.10
7318.14
7320.20
8421.39
8482.10
8483.90
8501.30
8501.31
8504.40
8505.11
8507.60
8508.70
8537.10
8544.42
9603.50
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 United States 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 United States the English name of the country of origin of the article. Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304.
Pursuant to 19 C.F. R Section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. Applied in sequential order, the required hierarchy establishes that the country of origin of a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
. . .
Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because the Vacuum Cleaners are neither wholly obtained or produced nor produced exclusively from “domestic” (Mexican, in this case) materials. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin determination, we look to section 102.11(a)(3). Section 102.11(a)(3) provides that the country of origin of a good is the country in which:
Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
“Foreign material” is defined in § 102.1(e) as:
“a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.”
The applicable tariff shift requirement in § 102.20 for the Vacuum Cleaners at issue is:
A change to subheading 8508.11 through 8508.60 from any other subheading, including another subheading within that group.
The applicable tariff shift rule requires a shift to subheading 8508.11, HTSUS, from any other subheading. We note that all of the foreign materials are classified in subheadings other than 8508.11, HTSUS. Therefore, the foreign materials undergo the requisite tariff shift, the Vacuum Cleaners should be considered as products of Mexico.
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