The country of origin of carbide grit hole saws.

N309591 February 27, 2020 CLA-2-82:OT:RR:NC:N1:118 CATEGORY: Country of Origin Ms. Suzanne M. Horne The MK Morse Company 1101 11th St. SE Canton, OH 44707 RE: The country of origin of carbide grit hole saws. Dear Ms. Horne: In your letter dated February 7, 2020, you requested a ruling on the country of origin of carbide grit hole saws. You also inquired as to the correct country of origin marking for imported carbide grit hole saws. The merchandise under consideration are different sizes of tungsten carbide grit hole saws in sizes ranging from 3/4” to 6” in diameter. Carbide grit hole saws are used to bore holes in abrasive materials such as acoustic tile, brick, cast iron and cement. You state that the product is produced at your United States facility with foreign steel strip material. This flat strip material is in fact a manufactured carbide grit band imported in 250-foot coils from a producer in the United Kingdom. Prior to export from the UK, the strip material is cut to the width and thickness of the finished hole saws. Additionally, teeth are formed along one edge of the strip and tungsten carbide grit material is bonded to the tips of the teeth, forming a finished cutting edge. Once imported into the U.S., the steel coils are laser etched with size dimensions (i.e. imperial and metric) and the country of origin name. Then, side slots are cut out and the strips are cut to length. A forming machine heats the cut-to-length strips and forms each into a circle. A cap is welded to the top and the side seam is welded. The cap is manufactured at your facility from U.S. steel. The product is then heat-treated before the final steps of painting and printing your company name on each. Finally, the finished hole saw is individually boxed for retail sale both domestically and abroad. You state that the entire U.S. manufacturing process takes a total of five days to complete. With regard to your request for the appropriate country of origin marking for the finished carbide grit hole saws, 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, the 250-foot running lengths of steel strip imported into the U.S. are not substantially transformed at your U.S. facility. These strips have been manufactured prior to importation so as to fix and define their use as carbide grit hole saws. The steel strips arrive in the U.S. with the same width and thickness as finished hole saws, and, importantly, have their teeth formed and carbide bonded to the teeth. In our view, the creation of the carbide-tipped teeth determines the essential character of the finished blade. See HQ 968137 (dated May 30, 2006); HQ 735086 (dated October 20, 1993). Furthermore, the article in its imported dimensions does not appear to be capable of any practical or commercial use other than as a hole saw. While the U.S. operations involve considerable processing and cost, that processing does not change the character and use of the article, and thus no substantial transformation occurs after importation. You also inquired as to the correct country of origin marking for the carbide grit hole saws. 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, prior to importation the hole saw blade strips have their cutting teeth formed and tipped with carbide material, and have the same width and thickness as the finished hole saws. After importation, they do not become an article with a new name, character, or use due to being cut-to-length, formed into circles, or finishing operations. For purposes of country of origin marking, the country of origin of the finished hold saws is the United Kingdom. Therefore, the finished hole saws should be marked “Made in the United Kingdom.” 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