OT:RR:NC:N4:410
Stacia Keegan
RIM Logistics
1303 Jack Ct. Barlett, IL 60103
RE: The country of origin of vent free gas logs and a vent free stove
Dear Ms. Keegan:
This is in response to your letter dated February 17, 2025, on behalf of your client GHP Group, requesting a country of origin determination on two vent free gas logs and a vent free stove 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 identified as the vent free gas logs (models VL-EO18DL and VFL3-EO18DTL) and vent free stove (model VSF2-MF30DT) used to bring warmth to a home.
The vent free freestanding gas log model VL-EO18DL consists of a Chinese-origin log set, shut-off valve, flex line, 3/8" flare x 1/2"MIP connector, 3/8"orifice fitting (NG), burner tube; and the Vietnamese made grate riser, cover plate, grate and burner holder.
The vent free freestanding gas log model VFL3-EO18DTL consists of a Chinese-origin log set, grate, grate end cap, oxygen depletion sensor (ODS) pilots (for NG and LP), selector knob, ignitor module, thermostat valve, burner, shutter; and the Vietnamese-originating regulators (for NG and LP), selector valve, bottom panel, selector valve bracket and L-shape connector.
The vent free freestanding stove model VSF2-MF30DT comprises two parts, a stove cabinet and an insert. The stove cabinet consists of Chinese-origin components, i.e., a screen assembly, M6 flange nuts, legs, and cabinmate panels. The insert consists of a Chinese-origin log set, ODS pilots (for NG and LP), selector knob, ignitor module, thermostat valve, burner; and the Vietnamese made regulators (for NG and LP), control cover assembly, main plate and selector valve bracket, and main bracket.
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 logs and stove. You note that the manufacturing process includes laser cutting, bending forming, painting and silk printing.
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 logs 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, and testing. Therefore, it is our view that the country of origin of the vent free gas logs (models VL-EO18DL and VFL3-EO18DTL) and the vent free stove (model VSF2-MF30DT) 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