The country of origin of a hand stamping kit

N320094 July 12, 2021 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Country of Origin Ms. Melissa Caron Wolter Corp. dba Impressart 100 Executive Drive Suite D Edgewood, New York 11717 RE: The country of origin of a hand stamping kit Dear Ms. Caron: In your letter dated June 18, 2021, you requested a country of origin ruling. Pictures and descriptions of the subject hand stamping kit were submitted for our review. The product under consideration is identified as a hand stamping kit, item number EKIT3S. The components that comprise the kit include an Ergo Angle Hammer, a large steel block, a stamp enamel marker, stamp straight tape, stamp sticker guides, 3D aluminum rectangle stamping blanks, an aluminum bracelet blank, zinc plated split rings, a plastic storage case for stamp shanks, and steel stamping shanks. The hammer, steel block, enamel marker, tape, sticker guides, aluminum rectangle blanks, aluminum bracelet blank, split rings and empty plastic storage case are manufactured in China. These components will be packed in a color box that will eventually be sold as EKIT3S. Three color boxes will then be packed into a master carton and will be shipped to Taiwan. The steel stamping shanks will be manufactured in Taiwan and inserted in the slots of the plastic storage case.  The Taiwan supplier will complete the kit by putting the plastic storage case back into the color box. The color box will be sealed with a sticker. All the components are packed in a single package ready for retail sale in Taiwan. Three color boxes will be put into a master carton for shipping to the United States. General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS. GRI 3(a) states in part that when two or more headings each refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. The subject hand stamping kit consists of more than two articles that are classifiable in different headings. It consists of articles put up together to carry out a specific activity (i.e., hand stamping). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the hand stamping kit, item number EKIT3S, is within the term "goods put up in sets for retail sale." 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 to render such other country the 'country of origin' within the meaning of this part.” 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. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986). In our view, the packing process performed in Taiwan which includes placing the plastic storage case with stamping shanks back into the color box packed with Chinese components and sealing the color box with a sticker is not complex. The various items in the hand stamping kit, although packaged together, do not lose their separate identities. Therefore, each item in the kit maintains its country of origin. Based on the facts presented, in the opinion of our office, the country of origin of the Ergo Angle Hammer, large steel block, stamp enamel marker, stamp straight tape, stamp sticker guides, 3D aluminum rectangle stamping blanks, aluminum bracelet blank, zinc plated split rings and plastic storage case for stamp shanks will be China, and the country of origin for the steel stamping shanks will be Taiwan. According to Treasury Decision 91-7 (dated January 16, 1991), "if the materials or components are not substantially transformed as a result of their inclusion in a set or mixed or composite goods, then, subject to the usual exceptions, each item must be individually marked to indicate its own country of origin." In this case, the packaging of items of the hand stamping kit together in Taiwan would not be a substantial transformation of those items. The Chinese items would not lose their country of origin when they are packaged as a part of the kit in Taiwan. Therefore, the subject Ergo Angle Hammer, large steel block, stamp enamel marker, stamp straight tape, stamp sticker guides, 3D aluminum rectangle stamping blanks, aluminum bracelet blank, zinc plated split rings and plastic storage case for stamp shanks should be marked to indicate that the country of origin is China. The Taiwanese steel stamping shanks that will be inserted in the slots of the plastic storage case in Taiwan should be marked to indicate that the country of origin is Taiwan. 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 Ann Taub at ann.taub@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division