H318255

HQ H318255 November 3, 2021 OT:RR:CTF:VS H318255 UBB CATEGORY: Origin Porfirio Waters TECMA Customs Solutions LLC 2000 Wyoming Ave. El Paso, TX 79903 RE: Country of origin of a fan blower Dear Mr. Waters, This is in response to your eRuling Request, submitted on behalf of your client, Shinano Kenshi Corporation (“Shinano”), on March 17, 2021, and modified per your request on September 22, 2021. You requested a country of origin marking determination and a country of origin determination for the purposes of the application of Section 301 remedies. Per your request, your query regarding the application of United States Mexico Canada Agreement (“USMCA”) preferential treatment was withdrawn on September 22, 2021. The subject merchandise is identified as a Pinnacle Fan Blower (“fan blower”) with an internal part number IDRF-3432-504-M. You classify the completed fan blower in subheading 8414.59.65, Harmonized Tariff Schedule of the United States (“HTSUS”). FACTS: The fan blower assembly primarily consists of a centrifugal impeller, a housing, an inlet and outlet, a printed circuit board assembly (PCBA), a lead wire assembly, anti-friction bearings, and a motor. You state that the fan blower is for use in a continuous positive airway pressure (CPAP) machine which is a medical device that provides continuous air flow and positive pressure for patients that suffer from obstructive sleep apnea. The fan blower is a custom design to meet performance specifications for a specific CPAP device program that is manufactured by your customer, Philips. The fan blower fits inside the CPAP machine and is designed to generate a precise air flow to help patients breathe easier during sleep. The device is intended to be placed on a nightstand, but can be packed in a travel bag and used anywhere. Only the fan blower assembly is at issue in this case. The fan blower is assembled at Shinano’s plant located in Guanajuato, Mexico from subassemblies that are also assembled in Mexico. The subassemblies include the rotor assembly, the stator assembly, a fan assembly, and a magnet yoke assembly. The components of the fan blower assembly are sourced from various countries, including China, Japan, Mexico, and the United States. In order to produce a completed fan blower, Shinano imports a stator core, two insulators, magnet wire, lead wire, bottom housing, bearing housing, a shaft, ball bearings, a thrust washer, a magnet, a rotor yoke, an impeller, top housing and a nut from China. Additionally, Shinano imports solder, wire solder, bottom housing seal, a wavy washer, adhesive, screw and lubricant from Japan. Finally, Shinano acquires (or imports) a printed circuit board assembly (PCBA), insulation sheet, adhesive, and split washers from the United States or Mexico. These materials are then combined to create subassemblies, which are combined into the fan blower. First the rotor assembly is created, followed by the magnet yoke assembly, to which the rotor assembly is joined. An impeller is then fit to the combined magnet yoke and rotor assemblies and the three are coupled to the stator assembly which is assembled separately, also at the Shinano plant in Mexico. To assemble the rotor, first a retaining ring is installed to a shaft. A ball bearing and bearing housing are then bonded to the shaft. The parts are inspected and cured. Next, a wave washer and a thrust washer are installed onto the bearing housing and the assembly is cured a second time. To assemble the magnet yoke assembly, a magnet is bonded to a rotor yoke. These parts are then cured and cooled. After testing, the magnet yoke assembly is magnetized using specialized high voltage equipment. This completes the magnet yoke assembly. The magnet yoke assembly and the rotor assembly are then coupled, bonded, and cured. Next, an impeller is checked for balance, and if needed, material from the impeller is removed using a drilling process. Then, the impeller is press-fit to the magnet yoke and rotor assemblies to form a fan assembly. To produce the stator assembly, magnetic wire is wound and soldered onto a stator. Next, a PCBA and an insulator sheet are connected and soldered to the stator. The stator assembly is then press-fit to the bottom housing of the fan blower. A lead wire harness is then soldered to the PCBA. Finally, the bottom housing seal is installed to the stator assembly. The stator assembly is then cured. For the final fan blower assembly, the fan assembly, which is already connected to the magnet yoke and rotor assemblies, is coupled to the stator assembly. Next, the top and bottom housings of the fan blower, are screwed to each other. Each completed fan blower assembly then undergoes various inspections and is packaged. As a preliminary matter, we note that based on the facts provided, while we agree with the proposed classification for the fan blower assembly, we do not agree that all the non-originating components are properly classified in your submission. However, for the purposes of the marking analysis under 19 C.F.R. 102, it is sufficient to note that none of your input components are classified under HTSUS 8414.59. As you did not request confirmation of classification in your eRuling Request, however, this ruling will not address the classification issue further. ISSUE: What is the country of origin of the fan blower assembly for marking purposes? What is the country of origin of the fan blower assembly for the purposes of Section 301 remedies? LAW AND ANALYSIS: Marking Section 304(a) of the Tariff Act of 1930, as amended (19 U.S.C. § 1304(a)), provides that, unless excepted, every article of foreign origin imported into the United States “shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article.” Congressional intent in enacting 19 U.S.C. § 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940); American Burtonizing Co. v. United States, 13 Ct. Cust. 652, 654 (Ct. Cust. App. 1926). Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11. Applied in sequential order, the required hierarchy establishes that the country of origin of a good is the country in which: (1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. . . . Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because the fan blower is neither wholly obtained or produced nor produced exclusively from “domestic” (Mexican, in this case) materials. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin determination, we look to section 

MarkingSection 304(a) of the Tariff Act of 1930, as amended (19 U.S.C. § 1304(a)), provides that, unless excepted, every article of foreign origin imported into the United States “shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article.” Congressional intent in enacting 19 U.S.C. § 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940); American Burtonizing Co. v. United States, 13 Ct. Cust. 652, 654 (Ct. Cust. App. 1926).Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11. Applied in sequential order, the required hierarchy establishes that the country of origin of a good is the country in which:(1) The good is wholly obtained or produced;(2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies