Reconsideration of NY N280010; Country of origin of styling shears imported from Japan

HQ H281842 February 28, 2017 CLA-2 OT:RR:CTF:TCM H281842 GaK CATEGORY: Classification TARIFF NO.: 8213.00.90 Donald S. Stein Greenberg Traurig, LLP 2101 L Street NW Suite 1000 Washington, D.C. 20037 RE: Reconsideration of NY N280010; Country of origin of styling shears imported from Japan Dear Mr. Stein: This is in reply to your letter dated November 28, 2016, in which you requested reconsideration of New York Ruling Letter (“NY”) N280010, dated October 28, 2016, which pertains to the country of origin of styling shears imported from Japan. In that ruling, the National Commodity Specialist Division (“NCSD”) determined that the country of origin of the styling shears is China. In your reconsideration request, you assert that Japan is the country of origin of the styling shears. We disagree. In Headquarters Ruling Letter (“HQ”) 561086, dated March 8, 1999, U.S. Customs and Border Protection (“CBP”) held that surgical scissors were substantially transformed when they were rendered into their near-final form, and that subsequent sand-blasting and trimming did not qualify as substantial transformation because they did not significantly alter the scissors’ shape or end-use. NY N280010 also relied on National Hand Tool Corp. v. United States, 16 C.I.T. 308, 312 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). In National Hand Tool, the Court of International Trade determined the country of origin marking requirements for imported individual tools which were used to produce flex sockets, speeder handles and flex handles. The court found that the character of the tools remained unchanged after heat-treatment, electroplating and assembly and the form of the components remained the same since each component was either hot-forged or cold-forged into its final shape in Taiwan. The blades of the styling shears at issue are produced from Japanese origin steel plate, which are sent to China for intermediate processing. Intermediate processing in China includes grinding, hole drilling, shaping, heat shaping, welding the handle on to the blades, and rough polishing. After intermediate processing, the blades with handles are returned to Japan for assembly and finishing operations. While you argue that the intermediate processing performed in China does not result in the styling shears having their final form, it is clear that the intermediate processing in China results in the product having the appearance of an unfinished pair of scissors. See HQ 733565, dated September 20, 1990 (CBP considered household shears made with U.S.-origin steel blades and screws, which were produced in the U.S. then exported to Pakistan for assembly. At the time of export to Pakistan, the shears have the appearance of an unfinished pair of scissors, and CBP held that the assembly process in Pakistan did not result in a substantial transformation); and HQ 559847, dated January 2, 1992 (CBP considered forceps and scissors which were hot forged into their final shape in the U.S. and exported to Pakistan for assembly. CBP held that the assembly process in Pakistan did not result in a substantial transformation). For all of the aforementioned reasons, we find that the country of origin of the styling shears is China. We therefore affirm NY N280010, dated October 28, 2016. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division