The country of origin of Aviation Snips and Tin Snips

N312501 June 24, 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 Aviation Snips and Tin Snips Dear Mr. Cunningham: In your letter dated June 8, 2020, on behalf of your client, Great Star Industrial USA, LLC, you requested a ruling on the country of origin of certain tools produced in Vietnam and China. The two tools are identified as Aviation Snips and Tin Snips, both of which are used to cut metal. The Tin Snips consists of two primary pieces, which are the left and right side of the tool. Each piece incorporates a handle with a hand/finger ring on one side and a cutting end on the other. The handles are joined by a pin near the cutting end, which provides a fulcrum, allowing the scissor action of the tool. The subject articles also have a comfort coating around the steel for the handle’s rings for user comfort. Aviation Snips are compound action snips that have a mechanical linkage that provides a greater advantage than the scissor design of Tin Snips. Accordingly, they can cut thicker metal than tin snips. You propose three production-scenarios. One production scenario is proposed for the Tin Snips and two production-scenarios are presented for Aviation Snips. Tin Snips In Vietnam, raw steel rods, which are sourced globally, are drop forged to make the two primary pieces of the tool (i.e. the right and left side). Each of these pieces incorporates the handle on one side and the cutting edge on the other. The two pieces are die-cut and burrs are removed. The finger/hand holes are punched. They are then sent to China where they are heat-treated and a hole is drilled into each. The right and left sides are assembled together using a Chinese origin screw and nut through the hole, and the comfort grip is applied over the steel on one end. Aviation Snips Production-scenario one: In Vietnam, raw steel rods, which are sourced globally, are dropped forged into the two rough shapes that makeup the head of the snips. The head incorporates the cutting part of the tool, the fulcrum, and upper portion of the handle. These two pieces are then die-cut and deburred into their final shape, and form. Next, raw steel shapes are punched and shaped into the final form of the snip’s two lower portion of the handles. The disassembled head and handles are then sent to China where they are heat treated and drilled with holes for assembly with screws and nuts. The handles are coated, i.e. painted. They are then assembled together using four Chinese origin screws and nuts. Finally, the Vietnamese steel handles receive a comfort grip before retail packaging. Production-scenario two: The process would be the same as first production-scenario, except the lower portion of the handles would be made in China instead of Vietnam. Regarding your request for the appropriate country of origin for the finished Aviation Snips and Tin Snips, 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. With regard to the Aviation Snips and Tin Snips described in the three proposed production-scenarios, it is our opinion that the manufacturing and assembly operations that occur in Vietnam transform the raw steel materials into integral components that impart the essence to the finished article, and that the subsequent production operations and assembly in China do not constitute a substantial transformation of goods. The assembly operations in China are neither complex nor do they result in a change in the character or use of the primary components produced in Vietnam. Belcrest Linens v. United States, 741 F.2d 1368, 1373 (Fed. Cir. 1984). The totality of the evidence, including the fact that the intergral components of each tool are of Vietnamese origin, supports the conclusion that Vietnam is the country where a substantial transformation occurred. Therefore, it is the opinion of this office that the county of origin of the Aviation Snips and Tins Snips, for the three proposed production scenarios, is 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