The country of origin of C-clamps.

N310918 April 16, 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 C-clamps. Dear Mr. Cunningham: In your letter dated March 26, 2020, on behalf of your client, Great Star Tools, you requested a ruling on the country of origin of C-Clamps produced in Vietnam and China. The subject C-Clamps, so-called due to their shape, are hand tools normally used to hold wood, metal, or other work pieces in carpentry, welding, and like pursuits. Two versions of the C-Clamp are at issue, one cast and the other drop forged, but they are otherwise identical in function and final appearance. The C-Clamps consist of four parts. First, there is a C-shaped frame with a flat edge on the top of the “C”, and a threaded hole at the bottom of the C. The flat edge holds one side of a work piece in place. Second, a threaded metal screw protrudes through the threaded hole on the bottom of the C. Third, one end of the screw contains a flat metal swivel pad. Fourth, the other end of the screw includes a small metal rod handle, inserted through the screw’s end perpendicular to the screw. Rotating the metal handle in one direction allows the swivel pad end of the screw to hold a work piece in place by pressing the work piece against the flat edge at the top of the C frame. Rotating the handle in the opposite direction will loosen the clamping action. The first production scenario concerns the cast C-Clamp. In Vietnam, raw ingots sourced from Vietnam and other countries are cast into the final shape, size and form of the “C” frame. The frame emerges from the casting with the flat edge at the top of the C, and the area where the threaded screw will be placed formed but not tapped and threaded. Additionally, stampings including brand names are cast in Vietnam, and the unit is polished. In China, the screw hole is tapped, and threaded into the C frame. The frame is painted via powder coating, then assembled to the Chinese origin screw, screw swivel pad, and metal rod handle before final packaging. The second production scenario concerns the drop forged C-Clamp. In Vietnam, raw steel rods sourced from Vietnam and other countries are drop forged into the rough form of the “C” frame. The frame is then further punched and edged into the final shape, size and form of the “C” frame. In China, the production steps are the same as described in the cast C-Clamp scenario above, with the exception of the addition of a small protective pad. Regarding your request for the appropriate country of origin for the finished C-Clamps, 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. The components of C-Clamps do not appear to undergo a change in name as a result of the processing in China. However, the name criterion is the least important of the three factors for determining whether a substantial transformation has occurred. Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (CIT 2016). Turning to the character and use criterions, the frame of the C-Clamps produced in Vietnam is recognizable as the major structural and visual component of the finished clamps, with its character and use largely determined. In Vietnam, the frames are cast or forged to their finished size and shape, and they contain stampings such as the brand name. They do not appear suitable for any use other than as C-Clamps. Although the C-frame must be tapped and threaded in China to permit the screw to be inserted, no other manufacturing occurs there and all assembly operations performed are very simple in nature. Like the hand tool components at issue in Nat’l Hand Tool, the C-frames are forged or cast into their final shape in Vietnam before arriving in the country of assembly, and their character and use is pre-determined. The totality of evidence supports a finding that the components are not substantially transformed in China into an article with a new character and use. Therefore, it is the opinion of this office that the C-Clamps described in your proposed production-processing scenarios are country of origin Vietnam. 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