The country of origin of a bottle opener and a jab saw

N318185 March 25, 2021 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 bottle opener and a jab saw Dear Mr. Cunningham: In your letter dated March 9, 2021, 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 tools are identified as a bottle opener and a jab saw. The bottle opener is constructed primarily of stainless steel with an injected molded comfort grip handle. It is designed to enable a user to remove a metal bottle cap from a glass bottle. The subject jab saw is a handheld saw, which is commonly used in the construction trade to cut holes into a variety of construction materials. It has a fixed serrated blade with a sharpened point at the tip. The saw is constructed of steel with an injected molded handle. You propose following three production-scenarios for the tools. One production scenario is set forth for the bottle opener and two production-scenarios are presented for the jab saw. Bottle opener In Vietnam, raw stainless steel is stamped into the general outline and shape of the bottle opener. Holes are also punched into the working end and into the handle portion of the article. The article is then sent to China where it is heat-treated, polished, and adjusted for straightness, if necessary. An injection molded handle cover is then placed on the metal handle for comfort and secured using the holes that were punched in Vietnam. Jab saw Production-scenario one: In Vietnam, raw strips of steel are stamped into the general shape of the blade and further stamped to create a rough handle attachment location. The blade is further punched to add serration (i.e., teeth) to make the blade and the blade tip. The article is then sent to China for finishing, where the teeth are further milled and heat-treated. The handle is drilled with two holes and further formed to add catches for the injection molded comfort handle’s attachment. The comfort handle is then injection molded to the metal and the finished jab saw is retail packaged to export to the United States. Production-scenario two: The process is the same as first production-scenario, except the serrations (i.e., teeth) are punched into the blade in China instead of Vietnam. Regarding your request for the appropriate country of origin for the finished bottle opener and jab saw, 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 bottle opener and the jab saw, described in the first production scenario, it is our opinion that the stamping and punching of the steel in Vietnam imparts the essence of the finished articles. Based on the provided description of the finishing operations performed in China, the bottle opener and jab saw are not substantially changed so as to transform them into a new article with a different name, character or use. Therefore, it is the opinion of this office that the finished bottle opener and the finished jab saw, described in the first production scenario, have a country of origin of Vietnam. In regard to the jab saw described in your second production scenario, we believe that the creation of the serrated teeth, through the stamping process in China, determines the essential character of the finished saw. See HQ 968137 (dated May 30, 2006); HQ 735086 (dated October 20, 1993). Customs ruled in HQ 740134 (dated February 6, 1987) that the grinding of geometrically shaped teeth onto blank saw blades and other minor processing substantially transformed the blank saw blade into a new article of commerce. It was noted that without the teeth, the finished item could not function, and that the creation of the teeth determines the essential character of the finished blade. In HQ 733837 (dated February 5, 1991), Customs followed the reasoning of HQ 740134 and concluded that very similar processing of grinding the teeth onto saw blade blanks in the U.S. was a substantial transformation. Therefore, it is the opinion of this office that the finished jab saw, described in the second production scenario, has a country of origin of China. 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