OT:RR:NC:N1:102
Lisa Murrin
Expeditors Tradewin LLC
795 Jubilee Drive Peabody, MA 01960
RE: The classification and country of origin of a vacuum seal bundle
Dear Ms. Murrin:
In your letter dated January 23, 2025, on behalf of SealVax, you requested a classification and country of origin ruling on a vacuuming seal bundle for the purpose of Section 301 Trade Remedies. A bill of materials, pictures and a descriptive narrative of the assembly process were provided.
The merchandise in question is referred to as the SealVax Premium Special Bundle. The bundle consists of a vacuum pump, a universal serial bus (USB) charging cable, threaded seal rings, two 32-ounce Mason Seal glass jars and three 46-ounce Season-Seal glass containers. Also, packaged in the bundle are two stainless-steel lids and three plastic easy lock lids. Each lid features a plastic one-way valve. In use, a lid is secured to a glass container or jar, and the vacuum pump is connected to the one-way valve. Once the pump is powered, a white light on the button indicates air is being removed. The pump automatically stops vacuuming when the process is complete.
The SealVax Premium Special Bundle is imported in a single retail package that contains articles that are classifiable under different headings of the tariff (chapter 70 and headings 8414 and 8481). General Rule of Interpretation (GRI) 3 applies when goods are put up for sale collectively and are classifiable under two or more headings of the tariff. GRI 3(b) covers goods put up in sets for retail sale. The Explanatory Notes represent the official interpretation of the Harmonized Tariff Schedule (HTS) at the international level. Explanatory Note X to GRI 3(b) defines “goods put up in sets for retail sale.” Such goods: (a) consist of at least two different articles that are classifiable in different headings, (b) consist of products put up together to meet a particular need or carry out a specific activity, and (c) are put up in a manner suitable for sale directly to users without repacking. The articles packaged in the instant bundle, in our opinion, meet the criteria for sets as the terms are defined in the cited Explanatory Note. Therefore, for the purposes of the HTS, the merchandise constitutes a set.
In having concluded that the items of the bundle constitute a set for tariff classification purposes, we must determine the essential character. According to the Explanatory Note to GRI 3(b), essential character may be determined by the nature of the material or component, its bulk, quantity, weight, or value, or by the role of the constituent material in relation to the use of the goods. In considering the role and value of the vacuum pump, we believe it imparts the essential character of the SealVax Premium Special Bundle.
In accordance with GRI 3(b), the applicable subheading for the SealVax Premium Special Bundle will be 8414.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; gas-tight biological safety cabinets, whether or not fitted with filters; parts thereof: Vacuum pumps. The general rate of duty is 2.5 percent ad valorem.
You also request that we determine the origin of the vacuum seal bundle and explain that the vacuum pump is assembled in Taiwan from components that are of Chinese and Taiwanese origin.
Prior to the final assembly of the vacuum pump, various components are manufactured in Taiwan using an injection molding process. Such components are an upper shell, a component bracket, a bottom plate, a dust cover, a light guide upper cover, a light guide column, the upper and lower components of a check valve and a three-way connector.
The following preassembly processes also occur in Taiwan.
Silicon tubing of Taiwanese origin is cut to 45 millimeters.
Rolls of double-sided foam tape of Taiwan origin are manually cut to length.
A conductive silicone sheet is die cut to a circular thin film, which is combined with various components to form a one-way valve. Afterwards, the valve is subject to ultrasonic cleaning.
The pump upper cover is laser cut to remove material, creating a hole that functions as a button.
The assembly of the printed circuit board assembly (PCBA), which initiates and controls the vacuum process, measures the pressure inside the container, supplies power to the pumping and sealing components, and automatically stops the vacuum process. The assembly of the PCBA requires populating a board using Surface Mount Technology and manual soldering. The components joined to the board are sourced from China, and consist of integrated chips, power regulator integrated chips, photodiodes, light emitting diodes, a USB connector, capacitors, transistors, and a microcontroller that includes a Bluetooth system on chip resistors.
Afterwards, various components are assembled to the PCBA, which begins by aligning and screwing the circuit board and the component bracket to each other. The silicone tube is then inserted into the component bracket, and one end of the three-way connector is connected to the circuit board, while the other end of the suction hose to the one-way valve. The silicone tube is connected to the other end of the one-way valve. Next, the metal end of the Chinese solenoid valve is connected to the pump connector, and the white end of the valve to the silicone hose. The silicone connecting tube is inserted to one end of the solenoid valve into the component bracket and the terminal wires are inserted into the solenoid valve. The battery and motor terminals are then inserted into their respective slots on the PCBA board. The process continues with a Chinese motor being placed onto the component bracket and the connection of a three-way fitting to the component bracket. In sequence, a lithium-ion battery from China is secured in place, the motor suction tube is connected to the motor suction port, the light guide column is assembled to the upper cover, and the light guide column is installed above the PCBA switch. Lastly, foam adhesive is attached to the battery and motor components.
Once the aforementioned components and subassemblies are complete, the final assembly of the vacuum pump occurs in Taiwan. This process begins by installing and securing a button inside of the upper casing. The Chinese manufactured motor, battery, and solenoid valve, which are already connected to the PCBA, are installed into the pump. The respective tubes and wiring are connected, the outer enclosures, the trim panel and USB dust cover are installed. Firmware is uploaded to the PCBA, and the appropriate electroplating is completed. Next, the device upper cover is screwed to the component bracket and the bottom gasket is manually installed. Throughout these processes, the vacuum pump is continuously calibrated and subjected to appropriate testing. Once finished, the pump is packaged with the remaining components, which are of Chinese origin.
When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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).
Here, components from China and Taiwan are assembled to each other in Taiwan to produce a vacuum pump, which imparts the essential character of the SealVax Premium Special Bundle. When considering the totality of the circumstances of the vacuum pump, this office finds that the manufacturing and assembly processes that will occur in Taiwan, taken as a whole, are sufficiently complex and meaningful as to result in a substantial transformation, such that the non-originating components lose their individual identities and become an integral part of a new article, possessing a new name, character and use. Based on the manufacturing and assembly processes described in the submission, we find that the country of origin of the vacuum pump is Taiwan. Accordingly, the country of origin of the SealVax Premium Special Bundle for the purpose of Section 301 Trade Remedies is Taiwan, when imported into the United States.
With regard to the application of Section 301 Trade Remedies, we note that goods originating from China unless specifically excluded, are subject to the trade remedy duties. As articles of Chinese origin are packaged in the SealVax Premium Special Bundle, we refer to the guidance pertaining to sets packaged for retail sale, which is provided on the CBP website under “CBP Section 301 Trade Remedies Frequently Asked Questions.” The answer to “How are the Section 301 duties assessed in respect to sets packaged for retail sale, which contain components covered by the Section 301 remedy,” reads, in pertinent part, as follows: When importing goods put up in sets for retail sale (in accordance with General Rule of Interpretation 3) that contain articles subject to the Section 301 remedy, if the product that imparts the essential character to the set (i.e., the HTSUS provision under which the entire set is classified) is covered by the Section 301 remedy, then the entire set will be subject to the additional 25 percent duties. Here, we find the vacuum pump, which is of Taiwanese origin, imparts the essential character of the SealVax Premium Special Bundle. As such, the SealVax Premium Special Bundle is not subject to the additional duties applicable to products of China under Section 301 of the Trade Act of 1974, as amended, upon importation into the United States. Regarding the marking of the bundle, Treasury Decision (T.D.) 91-7, published in Volume 25, Customs Bulletin and Decisions, at 6 (January 16, 1991), addressed, among other things, the application of country of origin marking requirements to sets. It states therein, specifically at 16: . . . in most cases, the mere inclusion of an item in a collection will not substantially transform it into an article with a new name, character or use and, therefore, each item must be separately marked with its own country of origin. (Where the marking of the container will reasonably indicate the country of origin to the ultimate purchaser, the container may be marked instead of the individual articles. See 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d).) This result is consistent with the purpose of the marking statute since the ultimate purchaser’s decision as to whether to buy the set might be influenced by the country of origin of any of the items in the set, whether or not an item gives the set its essential character. In considering T.D. 91-7, we find that the Chinese origin components packaged in the SealVax Premium Special Bundle are not substantially transformed as a result of being packaged with the Taiwanese component, and the individual components and the origin of all items packaged with the bundle must be identified. Consequently, each article must be individually marked with their country of origin, provided such marking is visible through the retail packaging of the systems, or the packaging must identify the origin of each of these items.
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.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division