H303865

HQ H303865 January 23, 2020 CLA-2 OT:RR:CTF:VS H303865 EGJ CATEGORY: Origin Thomas M. Keating Rock Trade Law LLC 134 N. LaSalle St., Suite 1800 RE: Country of origin of Three Dishwasher Pumps: Section 301 trade remedy; 9903.88.01, HTSUS Dear Mr. Keating: This is in response to your request, dated April 4, 2019, filed on behalf of Johnson Electric North America, regarding the country of origin of three different models of dishwasher pumps. In your letter, you request a binding ruling on the applicability of Section 301 trade remedies to proposed transactions involving these three dishwasher pumps. FACTS: The subject merchandise consists of three models of centrifugal dishwasher pumps, part numbers 1999-1130103EU, 1999-1130105EU, and 1999-1130107EU. You have provided us with supporting documents specific to part number 1999-1130105EU, but you state that all three part numbers have the same production process and material sources. Each pump consists of a pump assembly and an electric motor. In order to manufacture the pump, workers in Serbia combine discrete parts into subassemblies, which are then combined to form the finished product. The majority of the discrete parts are sourced from China, although a small percentage are sourced from Serbia and other countries. Workers in Serbia will construct subassemblies to form the electric motor. These subassemblies are the motor housing (stator), the rotor, the brackets, the rectifier, and the brush subassemblies. The manufacturing process for each of these subassemblies is set forth below. The Motor Housing (Stator) Subassembly The finished motor housing is circular in shape. Workers assemble the housing from an adhesive and four components which are manufactured in China: the steel housing, unmagnetized ferrite bars, a magnet holder and a keeper ring. A pneumatic press locks the ferrite bars and the magnet holder into place within the steel housing. Workers then place the unfinished housing into a machine which magnetizes the ferrite bars. Next, the housing moves to a pneumatic press which secures the external keeper ring around the outside of the housing. Finally, workers apply glue to the outer edges of the magnet in order to finish the motor housing subassembly. The Rotor Subassembly There are at least 15 components which make up the rotor subassembly; all of them are manufactured in China except for the magnet wire which is manufactured in Europe. The rotor production consists of 19 steps. First, a precut shaft is knurled by a roller blade to prepare the shaft surface to receive a commutator (an electrical rotary switch). Next, workers set silicon steel laminations into a stacking machine to a set stack height. The laminations are then aligned and the shaft is pneumatically press fit through the center of the lamination stack. Two plastic spiders and the commutator are also pneumatically pressed onto the shaft. The spiders give the lamination stack additional support to hold its shape. Dielectric strips are then inserted into each of the unwound lamination slots to provide insulation between the steel and magnet wire. Workers then place the unit into a winding machine where insulated copper wire is spun around the lamination stack in a specific pattern and hooked to the commutator. Next, workers place the commutator into a fusing machine, which permanently fuses the winding wire to the commutator. Then workers place additional dielectric insulation in each of the wound armature slots. Workers perform tests and visual inspections before applying an epoxy resin to the wound coil to prevent wires from coming loose due to high speeds or vibration. Workers place the assembly into an oven for the epoxy to cure. After the epoxy has cured, the surface of the commutator is then machine turned to achieve improved concentricity, roundness and surface finish. The rotor subassembly is placed onto a balancing machine where epoxy material is added to meet the correct balancing value. Workers manually apply more epoxy resin as balancing material. The rotor assembly is then heated again for curing. Finally, the commutator is cleaned and there is a final electrical test and visual inspection. The Brackets, the Rectifier, and the Brush Subassemblies The two brackets are plastic input and output brackets, and all of their components are manufactured in China. The output bracket is made up of a bracket housing, ball bearing and bearing retainer which are pneumatically press fit together. The input bracket is made up of a bracket housing, a sintered bearing, a bearing retainer and a metal washer which are pneumatically press fit together. All of the components which make up the rectifier subassembly are manufactured in China. The first step involves shaping a rectifier and cutting the lead to length. Insulated lead wires are cut to length and machine stripped at their ends. The lead wires are dipped in solder. Next, heat shrink tubing and silicon glass tubing are cut to length. The lead wires are inserted into the glass tubing. The rectifier and lead wire are attached in a crimping press and the rectifier is placed under heat to shrink the tubing around the lead wires. These steps are repeated with the capacitor. Finally, workers solder a heat sink onto the rectifier subassembly. All of the components which make up the brush subassembly are manufactured in China. Workers place carbon brushes, a brush holder and a spring into a jig where they are crimped together. Next, the brush shunt wire is welded to the brush holder. The Electric Motor Assembly All of the aforementioned subassemblies are combined in a nine step process to form the electric motor assembly. First, the rotor subassembly and the plastic output bracket are pneumatically press fit together. Then, this new unit is press fit together with the motor housing subassembly. Next, the plastic input bracket is hand fit onto the shaft. The housing is crimped to the input and output brackets to form a motor unit. The unit is placed into a fixtures where the section of the shaft extending from the input bracket is punched to create straight knurls in the surface. The brush and rectifier subassemblies are inserted into position on the input bracket. The rectifier wiring is then bundled with a cable tie and trimmed. The electric motor assembly is now ready to be combined with the pump assembly. The Pump Assembly All of the components of the pump assembly are manufactured in China except for the labels. Workers insert polyurethane foam gaskets into a plastic rear pump cover. This cover is then press fit onto the motor assembly. A metal insert is fit into the center of a plastic fan vane with a pneumatic press and then this unit is pneumatically press fit into the rear pump cover and onto the shaft. The pump subassembly is then put through several operating tests. Workers manually place a rubber O-ring into the exterior groove of the plastic pump housing and apply lubricant to it. Next, a stationary seal is placed into the center of the pump housing and pneumatically pressed into place. Then, a rotational seal is press fit onto the plastic extension of the impeller. A plastic spacer is placed in the pump housing and the impeller is pressed onto the shaft and into the pump housing. A metal macerator blade is then screwed onto the top of the impeller. An over-molded volute is then fit onto the pump housing. Then workers test the pump for leakage. A plastic fan cover is nap fit onto the bottom of the assembly to cover the cooling fan. Finally, workers test, label, and visually inspect the finished pump. ISSUE: What is the country of origin of the three centrifugal dishwasher pumps for the purposes of applying Section 301 trade remedies? LAW AND ANALYSIS: There is no dispute that the instant centrifugal dishwasher pumps are classified under subheading 8413.70.20 of the Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Pumps for liquids, whether or no

There is no dispute that the instant centrifugal dishwasher pumps are classified under subheading 8413.70.20 of the Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Pumps for liquids, whether or not fitted with a measuring device…: Other centrifugal pumps: Other: Other.” The United States Trade Representative (“USTR”) has determined that an additional ad valorem duty of 25% will be imposed on certain Chinese imports pursuant to its authority under Section 301(b) of the Trade Act of 1974 (“Section 301 measures”). The Section 301 measures apply to products of China enumerated in Section XXII, Chapter 99, Subchapter III, U.S. Note 20(b), HTSUS. Among the subheadings listed in U.S. Note 20(b) of Subchapter III, Chapter 99, HTSUS, is 8413.70.20, HTSUS. When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. 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). In order to determine whether a substantial transformation has occurred, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. CBP has stated that a new and different article of commerce is an article that has undergone a change in commercial designation or identity, fundamental character, or commercial use. A determinative issue is the extent of the operations performed and whether the materials lose their identity and become an integral part of the new article. 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).The question presented is whether the discrete parts from China are substantia