The country of origin of a Hand Saw, Z-Type Screwdriver and Nut Driver

N323063 December 14, 2021 CLA-2-82: OT:RR:NC:N1:118 CATEGORY: Country of Origin M. Jason Cunningham Sonnenberg & Cunningham PA 780 Fifth Ave. South Suite 200 Naples FL 34102 RE: The country of origin of a Hand Saw, Z-Type Screwdriver and Nut Driver Dear Mr. Cunningham: In your letter dated December 3, 2021, on behalf of your client, Great Star Industrial USA, LLC, you requested a ruling on the country of origin of three types of hand tools. The tools are identified as a hand saw, Z-Type screwdriver and nut driver. The tools are made predominantly of steel, and each has comfort grip handles. 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 hand tools. The production process for the hand saw begins in Vietnam with raw coils of steel. In Vietnam, the raw steel is die-cut into the saw blade’s final size and shape. Then one edge of the blade is serrated by punching, which creates the teeth of the saw blade. The blade is then sent to China, where four holes are drilled into the blade and the teeth are milled. The blade is also heat-treated, and ink marking are stamped on the blade. Finally, the plastic handle is attached, and the finished saw blade is retail packaged prior to shipment to the United States. The Z-Type screwdriver production process starts in Vietnam, where raw steel rods are die cut to length. Both ends are then lathe cut in order to prepare the tips to be processed. Further in Vietnam, one tip is mill grooved to create the Phillips head driver and the other tip is punched and cut to create the flat head driver. An anti-slip pattern is embossed into the rod and the rod is bent to add 90-degree angles near each end. The tool is then shipped to China where it is heat-treated and electroplated before shipment to the United States. The production process for the nut driver begins Vietnam, where raw coils of steel rod are cut to length. Each piece is then forged to make the driver blank. A hexagonal hole is added, which creates a socket at one end of the rod. The blank is then sent to China, where “wings” are punched on the other end, and the socket size is punched into the rod. Finally, it is heat-treated and chrome-plated before the plastic handle is injection molded to the wings of the non-working end of the rod. With regard to your request for the appropriate country of origin of the three 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. Regarding the country of origin of the subject hand saw, it is our view that the blade determines the essential character of the finished saw for purposes of determining origin. We note that the general shape of the blade is formed in Vietnam. The serrated teeth are also punched into the steel before the blade is shipped to China for further processing and assembly with the handle. It is therefore our opinion that the raw coils of steel are substantially transformed into the hand saw’s blade in Vietnam. As such, the country of origin of the finished hand saw is Vietnam. In regard to the Z-Type screwdriver, it is our view that raw steel is processed into the final form, shape, and size of the final product in Vietnam. This includes adding the slotted and Phillips driving tips and bending the rod into 90-degree angles near each end. The processing in China is minor, in comparison, and includes only heat-treating, plating, and retail packaging. As such, the country of origin of the finished Z-Type screwdriver is Vietnam. Regarding the subject nut driver, it is our view that raw steel rods are forged into the functional shape of the final product in Vietnam. The socket end of the tool is also created in Vietnam. We note that the processing in China includes punching, heat treating, and adding a handle. However, the steel has the size, shape, and form of the final nut driver and the hexagonal socket is already formed before export from Vietnam. As such, the country of origin of the finished nut driver is 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