H317645

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection 
 HQ H317645 October 5, 2021 OT:RR:CTF:VS H317545 CMR CATEGORY: Origin Robert J. Ernest, Esq. Robert E. Shervette, IV, Esq. Arent Fox LLP 1717 K Street, NW Washington, D.C. 20006 RE: Origin of oral irrigator assembled in one country of components produced in more than one country Dear Messrs. Ernest and Shervette: This is in response to your request, dated March 25, 2021, on behalf of your client, Water Pik, Inc., regarding the origin of an oral irrigator assembled in Vietnam from components produced in China and Vietnam. A conference was held with you on April 29, 2021 to discuss this request. A supplemental submission, dated June 24, 2021, has also been taken into consideration in reaching our decision as set forth herein. You have asked that certain information submitted in connection with this ruling request be treated as confidential, including information regarding the specific origin of the individual component parts used to produce the oral irrigator. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved. The information contained within brackets and all attachments to this ruling request, forwarded to our office, will not be released to the public and will be withheld from published versions of this ruling. FACTS: The oral irrigator at issue is assembled in Vietnam from 67 types of components (77 total components). Most of these components will be imported from China into Vietnam for assembly of the oral irrigator. You indicate that the percentage costs of the parts for the oral irrigator, based upon current sourcing and future sourcing, are as follows: 67% from China/33% from Vietnam (current), and 62% from China/38% from Vietnam (future). The percentage of parts sourced from China is 79%, with 21% from Vietnam. Future sourcing will adjust these figures only slightly with 72% of parts being sourced from China and 28% being sourced from Vietnam. You describe the function of the oral irrigator as follows: An oral irrigator functions by utilizing a motor to drive a pump that draws water out of a reservoir and then forces the water through a series of small diameter tubes where its pressure increases as it moves through the plastic tubing that connects to a handle. The handle has a jet tip nozzle attached to it where the pressured water velocity increases and is ejected out in a coherent stream into the mouth of a user. You provide a detailed description of the assembly process, however, you indicate that the major components or subassemblies to the oral indicator are the piston-pump assembly, the pump subassembly, the motor-gear subassembly, the HVDC motor assembly and the unit assembly. Based upon the descriptions provided in your submission, these components may be described as follows: The Piston-Pump Subassembly is a combination of three parts assembled together: the Pump Body, Piston Rod, and Piston. The Pump Subassembly provides the enclosures and valving for the pump, including the Piston-Pump Subassembly and the gears that will drive the pump. This subassembly works in combination with the Motor-Gear Subassembly. The Motor-Gear Subassembly functions by transferring the rotational power of the motor through a gear to drive the Piston Rod that moves in an enclosed cylinder where it draws water out from the reservoir and into the cylinder and then pushes the water back out under pressure in through the plumbing to create a focused stream of water upon exiting the nozzle. The piston rod creates a single pulse of fluid per revolution. This component subassembly contains the Motor with Gear Component, along with other components that make up the Motor-Gear Subassembly. HVDC Motor Assembly: When the Pump Subassembly and the Motor-Gear Subassembly are integrated together and affixed on the Chassis, this is referred to in the assembly flow-chart as the “HVDC Motor Assembly. The Unit Assembly is composed of the HVDC Motor Assembly (which is the Pump and Motor-Gear Subassemblies that are integrated in the Chassis), the Upper and Lower Housing, the outtake tubing, the water reservoir, and other external components. You describe the assembly process as requiring “32 operation stations requiring at least 42 steps, 33 technicians, and over 40 specialized tools and equipment, including uniquely customized fixtures and automated technologies.” You stress that each technician receives two to three days of training before being able to work in the assembly system to ensure “proper operation of the specialized equipment, for effective learning of assembly techniques and quality assessment, and to ensure safety in areas such as when soldering.” With the exception of the assembly of two components which require additional time, the assembly process takes approximately 15 to 20 minutes. You provided a detailed description of the assembly process which occurs in Vietnam. However, we will focus on the assembly of the major components and subassemblies you have identified. Beginning with the piston-pump subassembly, you indicate the assembly starts with a technician “connect[ing] the Piston Rod and the Piston so that they are joined together and ensuring that the connecting Piston Rod swivels freely without excessive play.” Additional steps, including measuring and lubricating, occur prior to the installation of “the combined Piston and Piston Rod with the Pump Seal into the Pump Body” creating the Piston-Pump subassembly. You also addressed the function of the piston-pump assembly, stating: From an engineering perspective, the Piston-Pump subassembly (the Piston and Piston-Rod, along with the Pump Body), are the key components for providing the optimal pressure of the water for oral cleaning purposes because the design of their size and dimensions are what determines the volume of fluid displacement, which in turn dictates the flow rate of the liquid. The piston-pump subassembly is part of the pump subassembly. As described above, the pump subassembly provides the enclosures and valving for the pump. Once the piston-pump assembly is completed, the assembly is described as requiring the assembly of the inlet check valve (consisting of five separate components), the power on/off switch (consisting of four component parts, plus plastite screws), and the valve keeper assembly (consisting of four component parts). The assembled valve keeper is assembled onto the pump body with screws. Finally, lubricated O-rings are placed on the top of the pump body and inlet valve, and then assembled to the pump inlet. This completes the pump subassembly. The assembly of the motor gear subassembly begins with pressing the gear shaft into position in a hole in the center of underside of the gear box. A technician applies lubricant to the gear teeth and places the gear into is assigned position on the chassis. Then a “technician inserts the gear shaft of the Motor-Gear Subassembly into an off-center opening from the topside of the Gear Box.” Once the motor gear subassembly is completed, it is incorporated into the HVDC Motor Assembly. A technician “places the Pump Subassembly into position on the Chassis so that the collar of the Piston Rod is placed over the protruding neck of the Gear that is set in place in the Chassis.” A “technician takes the Gear Box with the Motor-Gear Subassembly and the Gear Shaft and puts it into place on top of the Gear that is sitting on the Chassis with the Pump Subassembly. The Gear Shaft is inserted into the center of the Gear neck protruding portion and the gear teeth of the Motor-Gear Subassembly aligns with the gear teeth of the Gear and the screw holes on the Gear Box are lined up with the holes in the Chassis wherein screws are torqued into place connecting and holding the Motor-Gear Subassembly and Pump Subassembly to the Chassis.” This assembly is now referred to as the “HVDC Mo

The country of origin of a good is the country in which the good last underwent a substantial transformation. See 19 CFR § 134.1(b). “A substantial transformation test is used in a number of different trade-related situations, including compliance with the country of origin marking statute, allowance of drawback, and qualification for GSP status.” See SDI Technologies, Inc. v. United States, 21 C.I.T. 895, 897 n.2, 977 F.Supp. 1235, 1239 n.2 (CIT 1997). In this case, a substantial transformation test is used to determine the origin of the oral irrigator at issue for purposes of duty assessment and for purposes of trade remedies under Section 301 of the Trade Act of 1974 (“Section 301”).A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use which differs from the original material subjected to the process. United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940); Texas Instruments v. United States, 681 F.2d 778, 782 (1982). In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, the role of those components in the function of the item, the extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative.In this case, you submit that the assembly process which occurs in Vietnam is com