The country of origin of a bolt cutter, box wrenches and open-ended wrenches.

N309267 February 20, 2020 CLA-2-82:OT:RR:NC:N1:118 CATEGORY: Country of Origin Mr. M. Jason Cunningham Sonnenberg & Cunningham PA 780 Fifth Ave. South Suite 200 Naples FL 34102 RE: The country of origin of a bolt cutter, box wrenches and open-ended wrenches. Dear Mr. Cunningham: In your letter dated January 27, 2020, on behalf of your client, Great Star Industrial USA, LLC, you requested a ruling on the country of origin of a bolt cutter, box wrenches and open-ended wrenches. You have stated that the raw steel used in the production of these tools is sourced from various countries. A description of the tools and the production-processing scenarios for each tool is as follows: Bolt cutter In Vietnam, raw steel rods are die cut and drop forged to make the following: top and bottom cutter head jaws, top and bottom head leverage arms, and two press plates to connect the cutter heads. They exhibit their final form, are stamped with markings and are drilled to make them ready for assembly. These articles are sent to China where the jaws are heat-treated, the parts are polished and powder coated before being assembled together using Chinese origin nuts, bolts, and hollow steel handles are added along with soft handgrips. We note that while your refer to the steel handles as “handle extenders,” images provided with your submission reveal that they comprise the actual handle of the tool, attaching to the leverage arms. Box wrenches Scenario 1 In Vietnam, raw steel rod is drop forged to a rough shape, then die-cut, deburred, and hole-punched into a box-end blank that has the final shape, form, and dimensions of the finished product. Punching removes the scrap slug from the wrench ends, creating the open ends of the wrench. It is then sent to China where a 12-point opening is machined into the holes, markings are stamped to indicate wrench size and product markings, then heat treated, polished, and plated before retail packaging. Scenario 2 Production process 2 is the same as production process 1, described for the box end wrench above, except the holes are punched in China, not Vietnam. Open-ended wrenches Scenario 1 In Vietnam, raw steel rods drop forged then die cut, deburred, and punched to provide an open-end wrench blank with the final shape and form of the finished product. These articles are then sent to China where they are machined, stamped with size and brand markings, heat-treated, polished and plated for retail packaging. Scenario 2 The production process in this scenario is the same as above; expect that the punching occurs in China instead of Vietnam. With regard to your request for the appropriate country of origin of the bolt cutter and box wrenches, 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 and 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. Regarding the bolt cutter, in our view, the bolt cutter head, which is manufactured in Vietnam from substantially transformed raw steel, constitutes the major component of the article and imparts the essential character to the finished bolt cutter. Based on the provided description of the assembly and processing operations performed in China, the cutter’s head is not substantially transformed by the addition of the remaining components nor are the assembly operations complex enough so as to transform the cutting head into a new article. Therefore, it is the opinion of this office that the bolt cutter described in your proposed production-processing scenario is country of origin Vietnam. Regarding the box wrenches and open-ended wrenches, it is our view, that it is forging operations that impart the essence of these tools. In Taiwan, box wrenches and open-ended wrenches are forged and take on the shape and size of the finished tools. Based on the provided description of the finishing operations performed in China, the forged tools are not substantially changed so as to transform them into a new article with a different name, character or use. Therefore, it is the opinion of this office that, for tariff purposes, box wrenches and open-ended wrenches should have a country of origin of Taiwan. 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