The country of origin of a multi-bit driver and a 6-in-1 driver

N313801 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 a multi-bit driver and a 6-in-1 driver Dear Mr. Cunningham: In your letter dated August 7, 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 subject hand tools are identified as a multi-bit driver and a 6-in-1 driver. Both tools share a similar purpose and function that allows a user to apply torquing force in order to tighten or loosen a screw. The multi-bit driver consists of a plastic, rubber, or similar handle that is permanently connected to a bit driver shaft. The shaft is permanently embedded into the handle on one end. The other end has a small hexagonally shaped hole into which various driver bits may be inserted and changed. The subject multi-bit driver will be imported in a single retail package, together with multiple bits (usually Phillips head, slot head, and Torx head). In some instances, the driver handle will be hollow with a plastic cap that the user can unscrew to retrieve and store the bits. In other instances, the bits will be stored in a separate bit holder. The 6-in-1 driver consists of four primary parts: the handle, a removable and reversible shaft, and two differently sized, removable and reversible bits. It will be imported fully assembled, however, the 6-in-1 driver’s shaft can be pulled out of the handle by the user. The production scenario you propose for the multi-bit driver begins in Vietnam. In Vietnam, raw steel coil (currently from Vietnam but subject to global procurement) with a round diameter is cut to length, machined, chamfered and grooved into a hexagonal bit blank. Then, one end of each bit blank is further machined into a particular type of driver tip, e.g. Phillips, slot, or Torx. Finally, each fully formed bit is heat-treated, stamped, and sandblasted into its final form before they are shipped to China. Also in Vietnam, the shaft is manufactured from raw steel coil (currently from Vietnam but subject to global procurement). The raw steel coil is cut to length, cold-forged to final diameter, and cold-forged with a hexagonal interior shape on one end to accept the bits. It is machine-chamfered on both ends, where one end is shaped and sized to receive the bits. The Vietnamese origin shaft and bits are then sent to China. In China, the shaft is polished, and wings are punched on the shaft to allow permanent assembly between it and a Chinese origin handle. Assembly consists of pushing the handle and shaft together. It is then combined with the Vietnamese bits in retail packaging for export to the United States. The production scenario for the 6-in-1 driver also begins in Vietnam, where raw steel coil (sourced from Vietnam or globally) is die-cut to length into two different double-tipped bits. The first is machined to final size and shape with a 3/16” slot tip on one end and a #1 Phillips head on the other end. In the middle, between the tips, it is machined into a hexagonal shape that is the same size as a ¼” nut. The second is machined to final shape and size with a 9/32” slot at one end, a #2 Phillips tip at the other end, and a hexagonal-shaped middle that is the same size as a 5/16” nut. A hole is drilled into the center of each bit, and they are heat-treated and sandblasted. A steel ball is inserted into the hole of each and they are stamped with final sizes. Also in Vietnam, the shaft is manufactured from raw steel coil (sourced from Vietnam or globally). The raw steel coil is cold-forged to final diameter, shape, and cut to length. A hole is drilled through the center of the shaft lengthwise to create a hollow, round profile. It is machine-chamfered on both ends, where one end is shaped and sized to receive the ¼” bits and the other end is shaped and sized to receive the 5/16” bits. The driver’s shaft and the driver’s bits are then sent to China for final assembly and finishing. In China, the shaft has a hole drilled through the middle. It is polished, wings are punched, and a steel ball is inserted into the drill hole. A handle is injection molded and combined with a small steel shaft holder to complete the handle. The Chinese handle is assembled with the Vietnamese parts by pressing them together to make the final 6-in-1 driver, which is retail packaged and exported to the United States. Regarding your request for the appropriate country of origin for the finished multi-bit driver and 6-in-1 driver, 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 multi-bit driver and 6-in-1 driver, it is the opinion of this office that the country of origin of these products, described in each of your proposed production scenarios, is Vietnam. In both production scenarios, raw steel is substantially transformed in Vietnam into the driver bits and the driver shaft. The handle that is made in China for both types of drivers is not as significant to the products as the bits and shaft.  Furthermore, the assembly and other work done in China is not practically complex and does not substantially transform the Vietnamese bits and shafts. Therefore, the country of origin of the multi-bit driver and 6-in-1 driver 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