Oven:
Made in the U.S.A.
Heating component (Powerhead):
Made in China
This is not a substatial transformation, right?
I am selling one like this...
https://i.ebayimg.com/images/g/bs8AAOSw28Fkw42h/s-l1600.webp
https://www.cafr.ebay.ca/itm/176210877080
Note the label on the box... says Made in USA. The attached screenshot shows the label. I guess I still have to make sure the box doesn't contain other separate Made in China parts like User Guide printed in China etc.
I read the write-up on Chitchats on the links they provide to US imports marking. Here is the part that talked about the transformation:
This doesn't look like it applies. So I guess I have to separate the value of the powerhead from the rest of the oven? Impossible to do, this is 1990 model. Nobody will tell me. The company doesn't exist anymore, it's part of Nesco today.
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2. Substantial Transformation
If a product undergoes a major transformation in a second country—changing so significantly that it becomes a new item with a different name, character, or use—then the COO may shift to that country.
Substantial Transformation Examples:
- Sugar from Country A, flour from Country B, dairy products from Country C, and nuts from Country D are taken to Country E. In Country E, these products are further manufactured into cookies. (The separate ingredients were substantially transformed into a product of Country E, in that a new type of goods resulted from processing).
- Fresh vegetables grown in various countries are taken to another country to be mixed together and frozen. (The vegetables were NOT substantially transformed into products of the country where mixing and freezing occurred, and the mixture must be labeled with the origin of each ingredient).
- Repackaging, dilution with water, and similar minor processes usually do NOT cause a substantial transformation. Assembly or disassembly may result in a substantial transformation, depending on the nature of the products involved and the complexity of the operations.
Example 1 with a free trade agreement
Tariff shift - A change in tariff classification under the Harmonized System: A product’s classification changes to HS Headings 2203 through 2209, from any other heading except from another heading within that group.
A change to subheadings 3402.11 through 3402.19 from any other subheading within heading 3402, provided there is a regional value content of not less than: (soap products)
(1) 35 percent when the build-up method is used, or
(2) 45 percent when the build-down method is used.
Example 2 with a free trade agreement
The good is a new or different article of commerce that has been grown, produced or manufactured in the territory of an FTA country or of the United States, or both, and the sum of: (A) the value of each material produced in the territory of FTA country or of the United States, or both, and (B) the direct costs of processing operations performed in the FTA country or of the United States, or both, is not less than 35 percent of the appraised value of the good at the time the good is entered into the territory of the United States;
Note: The term “new or different article of commerce” means, except as provided in this subdivision, a good that: (1) has been substantially transformed from a good or material that is not wholly the growth, product or manufacture of Oman, the United States, or both; and (2) has a new name, character or use distinct from the good or material from which it was transformed, but a good shall not be considered a new or different article of commerce by virtue of having merely undergone (I) simple combining or packaging operations, or (II) mere dilution with water or another substance that does not materially alter the characteristics of the good.
3. Significant Increase in Value
A substantial increase in a product’s value may also impact its COO. If the retail value of the finished product is significantly higher than its original value due to manufacturing, processing, or assembly, this could indicate a change in COO. However, the exact percentage required for this determination varies.
We strongly recommend consulting CBP regulations, trade agreements, and tariff shift rules. When in doubt, contacting CBP directly will help clarify the appropriate COO designation for your shipments.
