The country of origin of a bolt cutter

N333956 July 21, 2023 OT:RR:NC:N1:118 CATEGORY: Origin Yan Chen Weihai Maxpower Advanced Tool CO., LTD No.8-9, 8-22 Huizhou Road, WendengWeihai 264400China RE:  The country of origin of a bolt cutter Dear Ms. Chen: In your letter dated July 12, 2023, you requested a country of origin ruling.  The imported merchandise is identified as a bolt cutter.  This hand-operated tool is typically used for cutting bolts, chains, padlocks, rebar, and wire mesh.  It has long handles and short blades, with compound hinges to maximize leverage and cutting force.  You have stated that the imported bolt cutter is comprised of several components produced in two countries, South Korea and China.  The main components of the bolt cutter include two cutter blades (i.e., the head), two tubular handles, and two handle joints.  These components are made using steel bars sourced from China. The steel bars are shipped to South Korea, where they will be forged into the final shape and form of the cutter blades, handle joints, and tubular handles.  Next, the forged bolt cutter blades and joints and unassembled bolt cutter handles are shipped to China.  In China, the bolt cutter blades and joints undergo machining and grinding to ensure that the blades and joints meet the precise measurements and shape specifications.  The edges of the cutter blades are milled and sharpened.  Holes are punched into the blades so that they can be attached to the joints and to the handles.  The blades and joints are heat-treated, and the handles are powder-paint coated.  Each bolt cutter handle is then paired up and has a joint unit inserted together to form an assembled handle unit.  The final assembly process involves the two bolt cutter blades being attached together with the joints (front and back) by bolts, nuts, pins, and shims.  Subsequently, the blade unit is attached to the handle units by bolts that connect through the handles and lower holes in the blades.  Handle grips made of TPR and PVC are then mounted on to the handles.  The finished bolt cutter is then packed and ready for shipment to the United States.  Regarding your request for the appropriate country of origin for the finished bolt cutter, 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.  Regarding the finished bolt cutter, we find that the machining and assembly processes performed in China do not constitute a substantial transformation of the cutter blades, handle joints, and tubular handles that were manufactured in South Korea.  These articles provide the essential characteristics of the finished bolt cutter, are dedicated for use as such and cannot be used for any other purpose.  Therefore, it is the opinion of our office that the country of origin of the finished bolt cutter is South Korea. Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.  The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.” This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Anthony Grossi at anthony.e.grossi@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division