The country of origin determination of hair styling shears

N280010 October 28, 2016 MAR-2 OT:RR:NC:N4:110 CATEGORY: Country of Origin Mr. Donald S. Stein Greenberg Traurig LLP 2101 L Street NW, Suite 1000 Washington, DC 20037 RE: The country of origin determination of hair styling shears Dear Mr. Stein: This is in response to your letter dated September 8, 2016, on behalf of Sharper Shears by Jon Parmer (“Sharper Shears”), requesting a binding ruling as to the country of origin for the hair styling shears imported from Japan. Samples were submitted and will be returned to you. The production of the shears are split between Japan and China. The blades of the shears produced from Japanese origin steel plate. The steel plate undergoes wire cutting and forging in Japan. Subsequently to forging, the forged steel is sent to China for intermediate processing. The intermediate processing includes grinding, drilling holes, shaping, heat treatment, welding a handle on the blades, and rough polishing. Subsequent to the intermediate processing, the product is returned to Japan, where it is subject to fine polishing, sharpening and final assembly that includes the Japanese origin tension pieces. You have states that under this manufacturing scenario, over 70 percent of the total cost of the finished product is derived from Japanese materials, or manufacturing/processing done in Japan. You have suggested that the SS 5.0 shears that will be imported from Japan are of Japanese origin. Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)), defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of the marking laws and regulations. You have cited HQ ruling 773565 dated September 20, 1990, to support your opinion. In this ruling CBP determined that at the time the shears were exported from the U.S. to Pakistan they had the appearance of an unfinished pair of scissors.  Although the metal was not smooth and the blades were dull, they had the basic size and shape of the finished shears.  In HQ 561086 dated March 8, 1999, CBP determined 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.  CBP relied on National Hand Tool v. US (1992), which established that changes in name, character, or use are the determinative factors in substantial transformation analyses concerning forgings for tools. In the instant hair styling shears, the processing in China imparts the shears with their final form and end-use, and the subsequent polishing and sharpening in Japan do not alter these.  As such, in accordance with National Hand Tool and HQ 561086, China is the country in which the shears are substantially transformed.  (The HQ ruling you cited also supports this conclusion but was issued prior to National Hand Tool). This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Hope Abada at hope.abada@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division