The country of origin of groove-joint pliers

N313171 July 21, 2020 CLA-2-82:OT:RR:NC:N1:118 CATEGORY: Country of Origin Mr. Andrew Bisbas Lowenstein Sandler LLP 2200 Pennsylvania Ave. NW Washington, DC 20037 RE: The country of origin of groove-joint pliers Dear Mr. Bisbas: In your letter dated July 13, 2020, you requested a country of origin ruling on behalf of your client, Tractor Supply Company. The imported article is a groove-joint pliers that are produced in two countries, South Korea and China. The two main components of the pliers include a fixed jaw/handle and a moveable jaw/handle, which are manufactured from steel bars sourced from China. The steel bars are shipped to South Korea, where they will be forged into the shape and form of the fixed jaw/handle and the moveable jaw/handle. These two components are then shipped to China where each is machined, polished and heat-treated. This includes milling groves into the jaws and punching holes into the handles. Next, the two components are assembled with a Chinese-origin pin, screw and spring. Finally, the finished groove-joint pliers are packaged and shipped to the United States. With regard to your request for the appropriate country of origin of the groove-joint pliers, 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 Nat’l 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 minimal assembly operations will generally not result in a substantial transformation. In regards to the finished groove-joint pliers, we find that the processes and assembly operations performed in China do not constitute a substantial transformation of the two main components of the pliers (i.e. the fixed jaw/handle and the moveable jaw/handle) that were manufactured in South Korea. These articles provide the essential characteristics of the finished pliers, are dedicated for use as such, and cannot be used for any other purpose. Therefore, it is the opinion of this office that the finished groove-joint pliers in your proposed production-processing scenario is country of origin South Korea. 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