The country of origin of an electric fireplace from China.

Product description

The product under consideration is described as the “AF-02 Electric Fireplace.” It is an electric fireplace that includes a heater with fan and features decorative logs and a light emitting diode (LED) produced flame effect that provides the appearance of a burning fire. This fireplace insert is assembled in Malaysia from parts sourced from Malaysia and China. We note that several of the key components such as the heater tube, thermostat, motor, and control components are sourced from China. When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) 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). In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation. This office reviewed the submitted production process, which is relatively minor and as it is a simple assembly process, it would not amount to a substantial transformation of the Chinese parts in Malaysia. Further, based on the parts breakdown and technical narrative submitted in your request, it is the opinion of this office that the Chinese parts, including the heater t

CBP rationale

substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) 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). In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation. This office reviewed the submitted production process, which is relatively minor and as it is a simple assembly process, it would not amount to a substantial transformation of the Chinese parts in Malaysia. Further, based on the parts breakdown and technical narrative submitted in your request, it is the opinion of this office that the Chinese parts, including the heater tube, thermostat, and motor, impart the essential identity and functionality to this electric fireplace.? As such, we hold the opinion that the country of origin for this product is China. 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.

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