The country of origin and marking of an electric pencil sharpener.

N310228 March 20, 2020 MAR-2-84:OT:RR:NC:N1:118 CATEGORY: Country of Origin, Marking Ms. Marilyn-Joy Cerny Sandler, Travis & Rosenberg, P.A. 24 Smith St. Pawling, NY 12564 RE: The country of origin and marking of an electric pencil sharpener. Dear Ms. Cerny: In your letter dated February 28, 2020, on behalf of your client Sanford, L.P., you requested a country of origin and marking ruling on a pencil sharpener. The imported product is identified as an X-ACTO® XLR™ Heavy Duty Pencil Sharpener, Model No. 1818. It incorporates an electric motor, cutting assembly, and shavings collector inside a plastic housing. The sharpener measures 7.2 inches long by 4 inches wide by 6 inches high and weighs approximately 1.8 lbs. It is designed for placement on a desk, table, etc. and features non-skid feet to keep the sharpener in place during use. You state in your submission that a Chinese-origin helical blade and shaft are sent to Vietnam. In Vietnam, these two parts are assembled with other Vietnamese parts. These components include a motor, gearing, electronics, plastic bin, housing and other structural elements. The overall production process in Vietnam will involve over one hundred production workers and supervisors working across four assembly lines. Once the pencil sharpener is assembled, the product goes through extensive testing and then is packaged for retail sale and international shipment. With regard to your request for the appropriate country of origin of the pencil sharpener, 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. It is our view that the production process in Vietnam constitutes a substantial transformation of the Chinese-origin helical blade and shaft. The fabrication and production of the pencil sharpener’s critical assemblies constitute meaningful assembly operations, which transform the Chinese originating components into a finished product. This creates a new and different article of commerce with a distinct character and use that is not inherent in the components when they are imported into Vietnam. Furthermore, not only is the assembly process done in Vietnam complex and meaningful, but also the vast majority of the components and value involved in producing the pencil sharpener are from the Vietnam. It is therefore the opinion of this office that, for tariff purposes, the country of origin for the pencil sharpener is Vietnam. You also inquired as to the correct country of origin marking for the imported pencil sharpener. 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, we find that the production process in Vietnam constitutes a substantial transformation of the Chinese-origin helical blade and shaft. Furthermore, the vast majority of the components and value involved in producing the pencil sharpener are from the Vietnam. We therefore find that the pencil sharpener should be marked with a phrase that indicates its country of origin is Vietnam. 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