The country of origin of a Cable Stripper, Cable Stripper & Crimper, Cutting Pliers, Cable Cutter and Cutting Pliers & Crimper

N314334 September 10, 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 Cable Stripper, Cable Stripper & Crimper, Cutting Pliers, Cable Cutter and Cutting Pliers & Crimper 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 five types of hand tools. The tools are identified as a Cable Stripper, Cable Stripper & Crimper, Cutting Pliers, Cable Cutter and Cutting Pliers & Crimper. The five tools are made predominantly of steel and each has comfort grip handles. Each tool includes two steel halves with a handle at one end and the working end, i.e. jaw, on the other. 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 operate the tool. They contain design characteristics suitable for stripping and cutting coaxial cable and wire. In your request you provide production-processing scenarios for each tool. You contend that the tools 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 Cable Stripper begins in Vietnam, where globally sourced raw steel sheets are die-cut into the two halves of the tool. They are then drilled for the fulcrum-hole. The two pieces are sent to China, where they are heat-treated and coated for rust- resistance. They are also milled to provide a cutting edge and stripping holes. The two pieces are then assembled together with a Chinese-origin steel pin, spring, screw, and a small steel lever. Lastly, a comfort grip is applied and the finished tool is packaged for retail sale. The Cable Stripper & Crimper production-processing scenario starts in Vietnam, where globally sourced raw strips of steel are die-cut to make the two halves of the tool. Holes are die-cut to size in the jaws for crimping, and the fulcrum hole is drilled. They are then sent to China where they are heat-treated and coated to prevent corrosion. Holes for crimping, cutting, and stripping are milled into each piece. The two pieces are then assembled together using a Chinese-origin screw, and soft grip covers are applied to the ends of the handles before retail packaging. The production-processing scenario for the Cutting Pliers begins in Vietnam, where globally sourced raw steel is 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. In this condition, the two pieces are sent to China for further metal-processing, heat-treatment, polishing, and marked with a laser. They are then assembled together using a small steel pin. Finally, the handles receive comfort grips and the finished tool is retail packaged. The Cable Cutter’s production-processing scenario starts in Vietnam, where globally sourced raw steel is die-cut and drilled 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. The two pieces are sent to China where they are heat-treated, coated and milled. They are then assembled together using a Chinese-origin steel pin and spring. Lastly, the handles receive comfort grips and the finished tool is retail packaged. Finally, you propose a production-processing scenario for the Cutting Pliers & Crimper. In Vietnam, globally sourced raw steel is drop-forged into blank 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. In this condition, the two pieces are sent to China where they are heat-treated, polished, and marked with a laser. They are then assembled together using a small steel pin. Lastly, the handles receive soft, comfortable grips and the finished tool is retail packaged. With regard to your request for the appropriate country of origin of the five tools, 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 handles and jaws constitute the essence of each finished tool. In the proposed production-processing scenarios for the five tools, raw steel is either drop-forged or die-cut in Vietnam into handles and jaws that have the shape and form of the final product. As a result of these operations, the handles and jaws are dedicated for use as these tools upon export from Vietnam. The Chinese processing consists of heat-treating, drilling a fulcrum hole, milling, polishing, and simple assembly. Based on the provided description of the assembly and processing operations performed in China for each scenario, 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 Cable Stripper, Cable Stripper & Crimper, Cutting Pliers, Cable Cutter and Cutting Pliers & Crimper 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