The country of origin of screwdrivers

N324189 February 16, 2022 CLA-2-82:OT:RR:NC:N1:118 CATEGORY: Country of Origin Ling Tang Jiande City Maite Tools Co., Ltd. No. 8 Huangliyang Industrial Estate Jiande, 311600 China RE: The country of origin of screwdrivers Dear Ms. Tang: In your letter dated February 7, 2022, you requested a ruling on the country of origin of screwdrivers produced in Thailand and China. The items in question are screwdrivers that are contained in a 22-piece Dual Material Screwdriver set, your SKU number HUSKY022. Each imported screwdriver will consist of a plastic handle, shank and blade. The blade (i.e., tip) will be either slotted, Phillips, Torx or square. The production process for the screwdriver begins in Thailand. Chinese-origin steel coil is imported into Thailand, where it is straightened and cut to length into individual shanks. The blade is also forged into one end of the shank. The article is then sent to China where “wings” are pressed into shape on the opposite end of the shank. The wings serve as the mechanical connection point for the handle. The entire article is then heat-treated, plated and assembled with a Chinese plastic handle. Finally, the finished screwdrivers are retail packed for export to the United States. Regarding your request for the appropriate country of origin for the finished screwdrivers, 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. It is our view that the raw steel coil is substantially transformed in Thailand into individual articles that have the shape, size, and form of the finished screwdriver’s shank and blade. Each of these articles (i.e., the shank and blade) constitutes the essence of a finished screwdriver. The assembly and processing operations performed in China do not substantially change it into a product with a new name, character or use. It is therefore the opinion of this office that the screwdrivers described in your production scenario are country of origin Thailand. 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