The country of origin of a pipe wrench

N334228 August 17, 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 pipe wrench Dear Ms. Chen: In your letter dated July 26, 2023, you requested a country of origin ruling on a Swedish pipe wrench.  The wrench is designed to provide a firm grip and leverage in tight spaces.  The tool incorporates serrated jaws that lock onto pipes and other work pieces.  A knurled steel adjustment nut allows the jaws to open and close from the handles.  Pictures and descriptions of the manufacturing processes were included in your submission. You have stated that the Swedish pipe wrench is comprised of several components produced in two countries, South Korea and China.  The two main components include an upper body with jaw and a lower body with jaw, which are manufactured from steel bars sourced from China.  The steel bars are shipped from China to South Korea, where they will be forged into their approximate size and shape.  The forged upper body with jaw and lower body with jaw are then shipped to China where each is machined, heat-treated, powder painted and polished, and stamped or laser etched with a logo.  In certain circumstances, PVC or TPR grips are added to the upper and lower body.  The machining process includes drilling connection holes in the upper body and lower body and milling teeth into the jaws.  Next, the upper body and lower body are assembled with a Chinese-origin steel sleeve, rivet, and adjustment nut.  Finally, the finished Swedish pipe wrench is packaged and shipped to the United States. Regarding your request for the appropriate country of origin of the Swedish pipe wrench, 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 Nat’l 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 forging of the upper body with jaw and lower body with jaw substantially transforms the steel bars into articles that provide the essential characteristics of the finished Swedish pipe wrench.  These articles are dedicated for use as such and cannot be used for any other purpose.  Based on the provided descriptions of the assembly and processing operations performed in China, these articles are not substantially transformed by the addition of the remaining components, nor are the assembly operations complex enough to transform them into a new article.  Therefore, it is the opinion of this office that the country of origin of the Swedish pipe wrench described in your manufacturing scenario 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