The country of origin of a Multi-Tool

N334762 September 11, 2023 OT:RR:NC:N1:118 CATEGORY: Origin M. Jason Cunningham Sonnenberg & Cunningham PA 780 Fifth Ave. South, Suite 200Naples, FL 34102 RE:  The country of origin of a Multi-Tool Dear Mr. Cunningham: In your letter dated August 16, 2023, on behalf of your client, Great Star Industrial USA, LLC, you requested a ruling on the country of origin of a multi-tool produced in Vietnam and China.  The subject multi-tool is a versatile folding hand tool for light work.  Its design characteristics allow it to be used as a caulk cleaner, cutter, bottle opener, hammer, paint scraper, patching compound spreader, paint roller cleaner, paint can opener, and flat head screwdriver.  It has a stainless-steel working part attached to a comfort handle by a folding mechanism, which allows the working end to be stored within the handle when not in use for convenience and safety. You propose the following three production scenarios for the multi-tool: Production scenario one: In Vietnam, raw steel plate material is die cut or laser cut into the final form, shape, and size of the working part of the final tool.  It has the shapes and features so that it can be used as a caulk cleaner, cutter, bottle opener, paint scraper, patching compound spreader, paint roller cleaner, paint can opener, or flat head screwdriver, but it lacks the handle.  The blank is sent to China where the tool’s blade is sharpened, heat-treated, and polished.  A yellow plastic handle is injection molded and the brand name is colored red on the handle.  The handle and working part of the tool are then assembled using screws, washers, rivets, a metal handle end cove, and a metal piece that reinforces the interior of the plastic handle and enables the tool to be retracted into the handle when not in use. Production scenario two: Production scenario two is the same as production scenario one, except the metal handle reinforcement piece that allows for the tool to retract (and reinforces the plastic handle) is stamped from raw steel in Vietnam instead of China. Production scenario three: Production scenario three is the same as production scenario one, except the plastic handle is injection molded in Vietnam instead of China. Regarding your request for the appropriate country of origin for the finished multi-tool, 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.  In our view it is the processing of the raw steel into a blank identifiable as the final hand tool, that provides the essential characteristic of the finished multi-tool.  Based on the provided descriptions of the finishing and assembly operations performed in China, the tool blank is not substantially changed so as to transform it into a new article with a different name, character, or use.  Therefore, it is the opinion of our office that the country of origin of the multi-tool described in your three production scenarios is Vietnam. 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