The country of origin of Wire Stripper Pliers, Wire Stripper & Crimper Pliers, and Quick Adjust Groove Pliers.

N313726 August 19, 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 Wire Stripper Pliers, Wire Stripper & Crimper Pliers, and Quick Adjust Groove Pliers. Dear Mr. Cunningham: In your letter dated August 4, 2020, on behalf of your client, Great Star Industrial USA, LLC, you requested a ruling on the country of origin of three different types of pliers. The pliers are identified as Wire Stripper Pliers, Wire Stripper & Crimper Pliers, and Quick Adjust Groove Pliers. All of the subject articles are hand tools made predominantly of steel. Each consists primarily of two halves, which are pieces of steel. Each of the two steel halves has a handle at one end and the working part, i.e. jaw, on the other end. The two pieces mirror each other so that when they are joined together with a steel pin, i.e. fulcrum, the handles and jaws of the two steel halves can work together to make the tool. In your request you provide production-processing scenarios for each of the pliers, discussed hereafter. You contend that the pliers produced are of Vietnam origin. You state that a substantial transformation occurs in Vietnam and that the Chinese components and processing do not substantially transform the Vietnamese components of the pliers. The production-processing scenario for the wire stripper pliers begins in Vietnam, where raw steel rods, which are sourced globally, are drop-forged to make the two halves. They are then die-cut and deburred so that they have their final size, shape, and form. They are then sent to China where they are machined and heat-treated. The two halves are assembled together using a Chinese origin screw and nut through the fulcrum hole. A comfort grip is applied over the steel handles, final markings are stamped, and the article is retail packaged. The production-processing scenario for the wire stripper & crimper pliers begins in Vietnam, where raw strips of steel are die-cut to make the two halves of the tool. Holes are die-cut into each for later insertion of a steel pin as the fulcrum. Additional holes are die-cut into the jaws, the head and handle. The pieces are then sent to China where they are heat-treated and coated to prevent corrosion. Holes for crimping, cutting, and stripping are further milled, then the two pieces are assembled using a screw, and a soft grip cover is applied to the ends of the handles before retail packaging. Finally, you propose a production-processing scenario for the quick adjust groove pliers. In Vietnam, raw steel is cut, then drop-forged into the roughs of the two main steel parts of the tool. The roughs are then die-cut into the final size, form and shape of the pieces that will later be assembled to make the final tool. One of these steel pieces is the top handle and bottom jaw with the fulcrum hole drilled into it. The other steel piece is the top of the jaw and the bottom handle. The bottom handle is die-cut to show where the hole will be machined. In this condition, the two pieces are then sent to China where they are further machined, heat-treated, and phosphate coated to inhibit corrosion. They are then assembled together using a small steel pin, spring, and hinge. Finally, the handles receive a comfortable grip and they are retail packaged. With regard to your request for the appropriate country of origin of the 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 and 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 pliers’ handles and jaws constitute the essence of the finished pliers. In each of the proposed production-processing scenarios for the three pliers, raw steel is drop forged in Vietnam into pliers’ handles and jaws that have the shape and form of the final product. The handles and jaws are also die-cut and deburred in Vietnam. As a result of these operations, the handles and jaws are dedicated for use as pliers upon export from Vietnam. The Chinese processing consists of heat-treating, possibly drilling the single fulcrum hole, polishing, and assembly with a pin and handle grips. Based on the provided description of the assembly and processing operations performed in China, the handles and jaws are not substantially changed by the addition of the remaining components, nor are the assembly operations complex enough to transform the handles and jaws into a new article. Therefore, it is the opinion of this office that the Wire Stripper Pliers, Wire Stripper & Crimper Pliers, and Quick Adjust Groove Pliers described in your proposed production-processing scenario 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