The country of origin of a bypass lopper and a pruner

N321168 September 9, 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 bypass lopper and a pruner Dear Mr. Cunningham: In your letter dated August 23, 2021, on behalf of your client, Great Star Industrial USA, LLC, you requested a ruling on the country of origin of a bypass lopper and a pruner. You have stated that each of these articles is produced in Vietnam and finished in China. Both of the subject articles are hand tools made primarily of long, rectangular strips of bulk, raw steel. Each tool consists primarily of two steel halves. These halves have a handle at one end and the working part, i.e., cutting jaws, on the other end. They are joined together with a steel pin, i.e., fulcrum, so the handles and jaws of the two steel halves can work together as a tool. The bypass lopper also has aluminum handle extensions to further amplify the force applied by the user. The pruner lacks the bypass lopper’s extended handles but includes a small spring that assists rapid reopening of the jaws for faster hand cutting, along with small parts that serve as a clip or locking mechanism to keep the jaws closed during storage. The working ends of both tools have a similar shape and design, and each contains design characteristics making it primarily suitable for cutting and pruning plants, shrubs, tree branches, and the like. The production-processing scenario for the bypass lopper begins in Vietnam. Raw steel sheet, which is globally sourced, is drop forged and die cut into the two halves of the finished tool. The two halves are not identical to each other. One half is drop forged and die cut into a steel handle with a cutting blade. The other half is drop forged and die cut into a steel handle with a curved counter blade, i.e., “hook.” Each is then drilled with a hole near the working part. The handle of each is press-formed to offset the two handles from each other. After this processing in Vietnam, the two halves are sent to China for finishing and assembly. This consists of heat-treating the two halves, milling the edges, coating the two halves with Teflon. The two halves are then assembled with the extension handles, handle grip covers, and the fulcrum pin. The production-processing scenario for the pruners begins in Vietnam. Raw steel sheet, which is globally sourced, is drop forged and die-cut to make the two halves of the pruner. The two halves are not identical to each other, like the bypass lopper described above. One half is drop forged and die cut into a steel handle with a cutting blade. The other half is drop forged and die cut into a steel handle with a curved counter blade, i.e., “hook.” Each half is then drilled with a hole near the working end of the tool (where a pin will eventually be inserted to serve as the fulcrum and to join the halves together). Still in Vietnam, the handle of each half is press formed to offset the two handles from each other. After this processing in Vietnam, the halves are sent to China for finishing and assembly. This consists of heat-treating the two halves, milling the edges, coating the two halves with Teflon. The two halves are assembled with the fulcrum pin through the pre-drilled holes, the spring, and the clips. Also, the comfort grips are applied to cover the steel handles. With regard to your request for the appropriate country of origin of the two hand 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 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. In our view, the two halves of each of the hand tools constitute the essence of the finished bypass lopper and pruner. In each of the proposed production-processing scenarios, the raw steel is drop forged and die cut into the two halves in Vietnam. These two halves incorporate the handle at one end and the working part, i.e., cutting jaws, on the other end. As a result of these operations, the handles and jaws are dedicated for use as bypass loppers and pruners upon export from Vietnam. We note that extensions are added to the handles of the bypass lopper in China. However, based on the provided description of the assembly and processing operations performed in China, the two halves of each of the hand tools are not substantially changed by the addition of the remaining components. Nor are the assembly operations complex enough to transform these components into a new article. Therefore, it is the opinion of this office that the bypass lopper and pruner 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