The country of origin of Tape Measures

N318325 March 25, 2021 MAR-2 OT:RR:NC:1:105 CATEGORY: Origin M. Jason Cunningham Sonnenberg & Cunningham PA 780 Fifth Ave South Naples, Florida 34102 RE: The country of origin of Tape Measures Dear Mr. Cunningham: This is in response to your letter dated March 16, 2021, on behalf of Great Star Industrial USA, LLC, requesting a ruling on the country of origin of tape measures. The item under consideration is described as a tape measure, which you state is used by tradespeople, inspectors, contractors, homeowners, and many types of consumers to measure distances accurately and quickly. Its compact and retractable design allows for the measurement of short to great lengths but can be easily carried in a pocket or toolkit. The steel measurement strip is flexible, which permits one to measure around curves or corners. The yellow steel ruler tape is a twenty-five foot long, flexible steel strip with linear measurement marks that shows length in feet, inches, and fractions of inches down to 1/16th of an inch. The steel ruler tape coils around a plastic wheel within the plastic housing. The wheel has a metal spring to assist the steel ruler to self-retract into the housing. The tape measure also features a sliding button to lock the tape in place and a floating tang or hook on the end to aid while measuring. You propose three production-scenarios. In production scenario one, coils of raw steel strips are cut into narrower strips that match the width of the measuring tape in South Korea. The narrow strips are heat-treated, painted yellow and then marked with the units of measurement. The materials are then sent to China and wrapped around the Chinese-origin plastic inner core wheel of the measuring tape and the tang is attached. The core wheel is assembled with the plastic housing, and finally packaged for retail sale before export to the United States. In production scenario two, coils of raw steel strips are cut into narrower strips that match the width of the ruler tape in South Korea. The narrow strips are heat-treated, painted yellow and marked with the units of measurement. Finally, a South Korean origin plastic inner core wheel is made. The metal ruler tape and the core are sent to China, where the steel tape is wrapped around the South Korean origin plastic inner core, and the tang is attached. The core is assembled with the plastic housing, and finally packaged for retail sale before export to the United States. In production scenario three, coils of raw steel strips are cut into narrower strips that match the width of the ruler tape in South Korea. The narrow strips are heat-treated, painted yellow and marked with the units of measurement. A South Korean origin plastic inner core wheel is made and the marked, steel tape is wrapped around it and the tang is attached. In China, the core is assembled with the plastic housing, and finally packaged for retail sale before export to the United States. The "country of origin" is defined in 19 CFR 134.1(b) as "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 courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). With respect to the completed tape measures, the additional parts added in China do not change the essential function of the steel printed tape measure. Consequently, the assembly process in China does not result in a new product having a distinctive name, character or use. Therefore, in our opinion, the good remains a product of South Korea in all three of the production scenarios listed above. 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 Jason Christie at jason.m.christie@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division