CBP Says Roomba Assembly in Malaysia Means the Retail Set Not Subject to Section 301 Tariffs

The manufacturing of major Roomba robotic vacuum subassemblies that occurs in Malaysia is enough for the vacuum to be considered of Malaysian origin, CBP said in a July 31 ruling. Sandler Travis lawyer Paula Connelly, representing iRobot, sought CBP's input on the country of origin. The agency also said the retail set that includes the vacuum is of Malaysia. The vacuum is classified in subheading 8508.11.0000, which was included in the third tranche of Section 301 tariffs on goods from China.

The company said that "the country of origin of the Roomba’s four key modules and the unit’s final assembly is Malaysia." CBP said it agreed with iRobot and that "based on the information submitted, the materials/components and subassemblies [are] imported into Malaysia from China where they are manufactured into different subassemblies, which are ultimately assembled." Specifically, the key Malaysian "modules" are the "Main Printed Circuit Board, Wheel Modules, Cliff Harness Module and Bin Module," CBP said. Chinese-origin components include the cleaning head assembly, the light touch sensor assembly and the side brush assembly, the agency said.

The processing in Malaysia "constitutes a substantial transformation of the imported materials/components into 'products of' Malaysia," CBP said. "The manufacturing process in Malaysia transforms the Chinese originating components/materials to produce the finished product. It creates a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Malaysia. Therefore, the 'product of' requirement has been satisfied."

The Roomba "packaged with the Chinese origin accessories of the rechargeable battery, dock station, power card and option virtual wall is a set put up for retail sale," CBP said, agreeing with iRobot's description of the product. Because the vacuum provides the essential character of the kit, the retail set is also considered a product of Malaysia, the agency said. As a result, the set is not subject to the Section 301 tariffs on goods from China.