The country of origin of hammers.

N306341 October 3, 2019 CLA-2-82:OT:RR:NC:N1:118 CATEGORY: Country of Origin Mr. Adams Lee Harris Bricken McVay Sliwoski, LLP 600 Stewart Street, Suite 1200 Seattle WA 98101 RE: The country of origin of hammers. Dear Mr. Lee: In your letter dated September 19, 2019, on behalf of your client, Easy Strike Co., Ltd. (hereinafter “Easy Strike”), you requested a ruling on the country of origin and application of Section 301 additional duties for hammers. You also inquired as to the correct country of origin marking for imported hammers. The merchandise under consideration includes several hammer products that have slightly different hammer head shapes or handle types, but are all manufactured in the same manner. The manufacturing process starts with the hammer heads forged in either a Vietnam or Taiwan production facility, using steel (1045 or 1055 medium carbon steel) from different sources (including Taiwan and China). After the steel is forged to the desired hammer head shape, the hammer heads are then trimmed to produce a finished forged hammer head. Next, the hammerheads are then shipped from Easy Strike’s Vietnam or Taiwan facilities to Easy Strike’s China production facilities. In China, the hammer heads undergo additional processing, such as sand blasting, V-groove cutting (machining), grinding, polishing and, heat treatment (presumably for tempering or strengthening), and coating with anti-rust agents. The hammer heads are then attached to China-origin handles made of either wood or fiberglass to produce a finished hammer. A label is affixed to the hammer head. The finished hammers are then placed into cardboard boxes that are placed in shipping cartons, which are then tape sealed for shipment. With regard to your request for the appropriate country of origin marking for the finished hammers, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means 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 this part; 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, 69 C.C.P.A. 151 (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 of various origins 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 operations that are minimal will generally not result in a substantial transformation. In our view, it is the forging of hammer heads that impart the essence of a finished hammer head. In Taiwan or Vietnam, the hammer heads are forged and take on the shape and size of the finished hammer heads. Based on the provided description of the assembly and finishing operations performed in China, the forged hammer heads are not substantially changed so as to transform them into a new article with a different name, character or use. Additionally, the hammer heads are not substantially transformed by the attachment of the wooden or fiberglass handles. Therefore, it is the opinion of this office that, for tariff purposes, the finished hammers should have a country of origin of Taiwan or Vietnam, depending on where they are forged. We note that neither of these countries are subject to Section 301 Trade Remedies. Accordingly, Easy Strike’s hammers would not be subject to the Section 301 tariffs. You also inquired as to the correct country of origin marking for the imported finished hammers. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit. The marking will be in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. In general, as provided at 19 C.F.R. 134.1, the country of origin of an article is the country in which it was manufactured, produced, or grown. Additional processing, manufacture, 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. See 19 C.F.R. § 134.1(b). A substantial transformation is said to occur if processing or manufacture imparts a new name, character, or use to the imported article. Applying these principles to the instant request, the forged hammer heads which are manufactured in Vietnam or Taiwan, do not become an article with a new name, character, or use because of the attachment of the handles in China. For purposes of country of origin marking, the country of origin of the finished hammers is Taiwan or Vietnam, depending on where the hammer head is forged. Therefore, the finished hammers should be marked “Made in Vietnam” or “Made in Taiwan”, as appropriate. This marking must be conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. § 1304 and 19 C.F.R. Part 134. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. § 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 Anthony E. Grossi at anthony.e.grossi@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division