The country of origin of sandpaper discs.

N326241 June 14, 2022 OT:RR:NC:N1:128 CATEGORY: Country of Origin Mr. George R. Tuttle III Tuttle Law Offices 3950 Civic Center Drive San Rafael, CA 94903 RE: The country of origin of sandpaper discs. Dear Mr. Tuttle: In your letter dated May 20, 2022, you requested a country of origin ruling determination on behalf of your client, Laroot Products, LLC. The merchandise under consideration is referred to as L338 Velcro Discs. They are abrasive discs designed for use with orbital sanders. From the information you provided, natural aluminum oxide corundum, aluminum oxide corundum with zirconia abrasive grains, a polyester film base, and adhesive are sourced from South Korea. In South Korea, the abrasive grains are affixed to the polyester film base using the adhesive. This material is baked, coated with resin and a stearate coating before being rolled into 1380 millimeter-wide rolls and shipped to China. In China, a hook-and-loop backing, which is manufactured in China, is laminated onto the rolls. Next, the laminated rolls are die-cut into specific sizes and hole patterns. The completed discs are then packed and shipped 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. When considering a product that may be subject to antidumping, countervailing, or other safeguard measures, the substantial transformation analysis is applied to determine the country of origin. See 19 C.F.R. § 102.0; HQ 563205, dated June 28, 2006; see also Belcrest Linens v. United States, 741 F.2d 1368, 1370-71 (Fed. Cir. 1984) (finding that “the term ‘product of’ at the least includes manufactured articles of such country or area” and that substantial transformation “is essentially the test used…in determining whether an article is a manufacture of a given country”). 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 L338 Velcro Discs, we find that the processes that take place in China do not result in a new product having a distinctive name, character or use. Therefore, the country of origin of the L338 Velcro Discs is South Korea. 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 Nicole Sullivan at nicole.d.sullivan@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division