OT:RR:NC:N4:410
Stacia Keegan
RIM Logistics
1303 Jack Ct. Barlett, IL 60103
RE: The country of origin of gas heaters
Dear Ms. Keegan:
This is in response to your letter dated February 14, 2025, on behalf of your client GHP Group, requesting a country of origin determination on two gas heaters for purposes of current Section 301 duties. Photos and a detailed description of the manufacturing operations were provided for our review.
The items under consideration are two gas heaters identified as Model IR30DMF and Model BF30DMF. Both models each comprise the following components:
From China
Front panel assembly, burner assembly, oxygen depletion sensor (ODS) assemblies (for LP and NG), thermocouple connection wire, ignition wire, thermostatic gas valve, regulator bracket, wall mounting bracket, ignitor module, ignitor bracket, selector valve knob, hardware pack, nozzles (for LP and NG), aluminum tubes and back panel assembly. In addition, Model BF30DMF also includes the primary air shield, front air deflector and front grille.
Made in Vietnam
Gas selector valve, regulators (for LP and NG), propane 10" WC, and natural gas 5" WC.
You present a manufacturing process scenario, in which the factory in Vietnam assembles the components of both Chinese-origin and Vietnamese-origin to manufacture the gas heaters. Your production description notes that the manufacturing process includes cutting, hole punching, painting, bending, assembling, tightening, and testing.
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).
Based on the documents presented, we find that the majority of the parts or components are from China, especially the components imparting the character, including the ignitor, burner assembly, and housing originate in China, and the majority of value comes from China. Further, although the Vietnam assembly process involves some complex operations to an extent, the majority appear simple in nature, such as painting, bending, assembling, tightening, hole punching, and testing. Therefore, in our view, the country of origin of the gas heaters is China for purposes of current Section 301 duties.
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 Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division