The country of origin of a tapping spatula

N313949 August 21, 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 tapping spatula Dear Mr. Cunningham: In your letter dated August 13, 2020, on behalf of your client, Great Star Industrial USA, LLC, you requested a ruling on the country of origin of a tapping spatula. A tapping spatula is a hand tool used for scraping surfaces or spreading material, such as plaster and joint compound in various construction trades. It is also known by other commercial and common names, such as putty knife, spackling knife, taping knife, and joint knife. The tool is constructed primarily of steel. It consists of a handle and a wide flat “blade” that is used to spread material, e.g., joint compound, plaster, etc. In your request you provide a production-processing scenario for the tapping spatula, discussed hereafter. You contend that the tapping spatula produced is 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. The production-processing scenario for the tapping spatula begins in Vietnam, where raw steel (from Vietnam or sourced globally) is die-cut to make a single piece of steel, which is in the final tapping spatula’s working edge and steel handle. The blank is sent to China, where two holes are drilled into the handle. The steel is polished and ground, and an injection-molded comfort handle cover is attached using the two holes and metal pins. A metal cap is attached to the end of the handle. It is then retail packaged for shipment to the United States. With regard to your request for the appropriate country of origin of the tapping spatula, 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 are considered in order to conclude whether a product with a new name, character, and use has been produced. These factors include the components used to create the product and manufacturing processes that these components undergo. No one factor is decisive, and minimal assembly operations will generally not result in a substantial transformation. In our view, the die-cut tapping spatula blank embodies the essential form of the final tapping spatula when exported from Vietnam. The Chinese finishing and assembly operations are not complex and do not substantially transform the blank into a new article. Therefore, it is the opinion of this office that the tapping spatula described in your proposed production-processing scenario is 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