OT:RR:NC:N1:102
Jamie Shookman
Husch Blackwell
511 N Broadway Milwaukee, WI 53202
RE: The country of origin of a two-handle faucet and a single-handle faucet
Dear Ms. Shookman:
In your letter dated September 4, 2024, on behalf of your client Kohler Co., you requested a country of origin ruling on a two-handle faucet and single-handle faucet. A description of the manufacturing and assembly process was submitted for our review.
The first faucet at issue, the Avail Faucet (Model K-R33047-4D) contains two valve assemblies. One valve assembly is connected to a hot water line and the second valve assembly is connected to a cold-water line. The second faucet at issue, the Trove Faucet (Model K-R33300) contains a single valve assembly that connects to both hot and cold-water lines.
During operation, the valve assemblies in both Avail and Trove Faucets perform the function of controlling the flow of water. Both models work in conjunction with a stem, which is actuated by the user. When actuated, the stem rotates and slides a movable ceramic disc relative to a stationary ceramic disc within the valve assemblies. When the two discs are positioned in alignment, no opening exists for water to flow. As the movable disc rotates, the two discs are no longer in alignment and an opening is created. This opening serves as an inlet and outlet for water to travel through the valve assemblies to the rest of the faucet.
For both models, you indicate the valve assemblies are manufactured in Taiwan, and with the remaining components manufactured in China, are assembled into the finished faucets in China. Specifically, the manufacturing process in Taiwan begins with the compressing, sintering, grinding, polishing, and surface finishing of the ceramic raw material into finished ceramic discs. Through injection molding, the stem and outer valve assembly housing are manufactured. In the single-turn Trove model, the pivot turn assembly and slider plate are injection molded. The seals and O-rings, rubber pieces that form seals in the valve assemblies, are manufactured through vulcanization or a similar method. Grease is applied to certain components and all valve assembly components are assembled into the outer housing. At that point, the assembled and completed valve assemblies are subjected to various testing in Taiwan for quality assurance purposes prior to export to China.
As described in your letter, the remaining components manufactured in China are primarily injection molded. For example, the Avail Faucet contains an injection molded yoke into which water flows from the valve assemblies, and the Trove Faucet contains an injection molded puck that directs water out of the valve assembly. In addition, both models contain decorative zinc die-cast bodies and handles, and an injection molded spray head. The Trove Faucet contains a stainless-steel escutcheon.
The assembly of the Avail Faucet includes, but is not limited to, connecting two supply hoses to the two valve assemblies which, using a hold down nut, connect to a yoke to secure the valve assembly in place. Two handles are placed over the yoke and screwed in place. An outlet hose, which is also connected to the yoke, carries water to an aerator in the spout. In your letter, you indicate the assembly of the Trove Faucet is similar except that the handle is attached to the valve assembly stem using a set screw, and a puck connects to the valve assembly using a hold down nut to create an inlet/outlet in the valve. Finally, the assembled faucets undergo additional testing in China for quality assurance purposes.
The "country of origin" is defined in 19 CFR 134.1(b) 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' within the meaning of this part."
The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 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. Furthermore, at issue is the extent of operations performed and whether the parts lose their identity and become an integral part of a new article.
In the scenarios described in your request, the operations performed in China are not complex or meaningful enough to substantially transform the article. The valve assemblies exported from Taiwan to China have a pre-determined use to make finished faucets, they remain unchanged, and they perform the essential function of controlling the flow of hot and cold water. Although the other components manufactured in China, particularly the handles, spouts, faucet bodies, and the aesthetic elements imparted thereon are important factors as they not only provide ease of use but may play a role in the consumer's decision-making process, the valve assemblies impart the essence of the finished faucets (H321630; June 27, 2022). As such, we find that the country of origin of the two-handle Avail Faucet and the single-handle Trove Faucet will be Taiwan. Accordingly, the subject products will not be subject to the Section 301 trade remedy.
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 and Border Protection Regulations (19 C.F.R. 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, please contact National Import Specialist Paul Taylor at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division