The country of origin of C-clamp locking pliers

N334540 August 30, 2023 OT:RR:NC:N1:118 CATEGORY: Origin Yan Chen Weihai Maxpower Advanced Tool Co., LTD No. 8, Huizhou Road, Wendeng,Weihai 264400China RE:  The country of origin of C-clamp locking pliers Dear Ms. Chen: In your letter dated August 8, 2023, you requested a country of origin ruling.  The imported merchandise is identified as C-clamp locking pliers.  The subject C-clamps, so-called due to their shape, are hand tools normally used to hold wood, metal, or other work pieces in carpentry, welding, and similar pursuits.  Pictures and descriptions of the manufacturing processes were included in your submission. You have stated that the C-clamp locking pliers are comprised of several components produced in two countries, South Korea and China.  These components include a fixed jaw, moveable jaw, fixed handle, moveable handle, release lever, pivot joint, swiveling pads, and adjusting bolt/screw.  The moveable jaw and fixed jaw are made using steel bars sourced from China.  The steel bars will be shipped to South Korea, where they will be forged into their final shape and form.  Next, the forged fixed jaw and moveable jaw are shipped to China where they are further machined, heat-treated, and plated.  This includes drilling holes in the jaws so they can be assembled with a fixed handle and an adjustable handle.  The jaws are then assembled with the following Chinese-origin components: fixed handle, adjustable handle, pivot joint, release lever, rivet pins, spring, swiveling pads, and adjusting bolt/screw.  Finally, the finished C-Clamp locking pliers are packaged and shipped to the United States. Regarding your request for the appropriate country of origin for the finished C-clamp locking pliers, 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.  Considering the country of origin for the finished C-clamp locking pliers, there is no dispute that the moveable jaw and fixed jaw, which are produced in South Korea, are dedicated for use in the specifically designed C-clamp locking pliers. In other words, they have a pre-determined use at the time they are exported from South Korea to China.  However, while this is a consideration, as noted by the court in National Hand Tool, this does not preclude a finding of substantial transformation.  Unlike the tools in National Hand Tool that were in the final form at the time they left Taiwan and were clearly recognizable by name, although not finished; the moveable jaw and fixed jaw that leave South Korea are not clearly recognizable as parts of the C-clamp locking pliers. As the court stated in National Hand Tool, we must look at the totality of the evidence.  We also must consider the product at issue, how it functions, and the purpose of the components within it carrying out its function.  The C-clamp locking pliers utilizes an adjusting bolt/screw at the back of the tool to adjust the spacing of the jaws.  When the optimum setting has been dialed in, the jaws will close together with an audible “click,” and lock in place.  Once locked in place, the tool grips material like a vise.  To release the jaws, there is a separate lever built into the handle which disengages them when it is pressed.   In the instant case, only the moveable jaw and fixed jaw are roughly formed in South Korea.  They are then shipped to China, where they are further prepared for assembly, and assembled with critical Chinese-origin parts.  These parts include the fixed handle, adjustable handle, pivot joint, release lever, rivet pins, spring, swiveling pads, and adjusting bolt/screw.  Therefore, the totality of the evidence leads our office to conclude that the country of origin of the C-clamp locking pliers is China. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request.  This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1).  This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect.  In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. 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