CLA-2-85:OT:RR:NC:N4:415
Thomas Pifer
Electrolux Consumer Products, Inc.
10200 David Taylor Drive
Charlotte, NC 28262
RE: The country of origin of a heating element from Thailand.
Dear Mr. Pifer:
In your letter dated July 10, 2024, you requested a country of origin ruling.
The product under consideration is a heating element that will be used in the manufacturing process of your company’s dishwashers. You note that they will be used specifically for the models that feature a plastic tub. This electric heating resistor does not feature any other components beyond the electrical connections.
The provided documentation states that this heating element is created in Thailand from the following components sourced from China: stainless-steel tape, resistance wire, metal flanges, terminal tabs, terminal pins, and magnesium oxide (MgO) powder.
The following steps are performed in Thailand primarily using automated machines:
The stainless-steel tape is shaped and welded into a tube.
The resistance wire is coiled.
The terminal pins are spot welded to the coiled resistance wire.
The components produced in the previous step are inserted into the tubes and then filled with the MgO powder.
These processed tubes are shrunk to compress the powder.
The tube heads are cut to expose the terminal pins.
The tube heads are shrunk again to make the tubing smaller.
They are annealed to relieve stress in the processed tubes.
The processed tubes are shaped.
High pressure is exerted on the tubes to tighten and solidify the MgO powder.
The flanges are riveted into place.
The terminal pins are cut to the required length.
The terminal tabs are welded to the heater pins created in the previous steps.
The components are tested throughout the production process. The finished heating elements are again tested prior to completion and packaging.
Pursuant to Part 134, Customs Regulations (19 CFR 134), implements the country of origin marking requirements and exceptions of 19 USC 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as: “[t]he 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.” A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation.
This office reviewed the provided assembly process flow chart, and we are of the opinion that the Chinese components undergo enough of a change in Thailand to afterwards emerge with a new name, character, and use that is different from what they possessed prior to processing, thus completing a substantial transformation. Therefore, from the details submitted, the country of origin for this heating element would be Thailand.
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 Regulations (19 CFR 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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division