The country of origin of a hand-cultivator

N335179 September 13, 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 hand-cultivator Dear Mr. Cunningham: In your letter dated September 6, 2023, on behalf of your client, Great Star Industrial USA, LLC, you requested a ruling on the country of origin of a hand tool commonly and commercially known as a hand-cultivator.  The tool is used for tilling, i.e., to break and loosen hardened earth in a garden.  It can also be used to remove weeds, aerate soil, and mix different types of soils for healthy plant growth. The tool will be made primarily from bulk, raw stainless-steel with a plastic comfort grip.  It transfers the user’s force through the handle to the working end of the hand tool.  From the handle, stainless-steel rods extend then bend downward at a 90-degree angle.  The end of each rod is flattened and pointed into a specially formed tine to facilitate tilling and other common uses in a small garden or in small areas of a garden. You have stated that the hand-cultivator will be produced in Vietnam and China, and you propose the following two production scenarios: Production scenario one: In Vietnam, raw stainless-steel rods will be used to make the working part of the final tool.  Two rods will be die-cut to length.  One of those rods will be milled to a point on one end.  The other rod will be milled to a point on both ends.  The three milled tips will be punched to flatten them into the final form of the working tips of the hand cultivator.  The first rod will then be bent at a 90-degree angle approximately 1.5 inches from the working tip.  The un-milled tip of the first rod will be stamped to create a “wing” to which the plastic handle will eventually be attached.  Still in Vietnam, the rod that has been cut, then milled and punched into the working point on both ends will be bent inward into a V-shape at approximately a 30-degree angle.  Then both ends will be bent downward at a 90-degree angle about 1.5 inches from the milled tips.  These two Vietnamese working parts will be sent to China where they will be welded together at one spot, polished and have a plastic injection handle attached to the steel rod using the “wing” that was stamped in Vietnam as the attachment point. Production scenario two: In this alternative production scenario, production would occur as described in production scenario one, in which the raw stainless-steel will be cut, and the working tips will be milled and punched to final form in Vietnam, except the 30-degree and 90-degree bending of the two pieces would occur in China, not Vietnam. Regarding your request for the appropriate country of origin for the finished hand-cultivator, 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 your first production scenario, it is our view that the processing and bending of the raw steel into blanks identifiable as the final hand tool provides the essential characteristic of the finished hand-cultivator.  The two pieces of steel are not only milled and punched in Vietnam, but they are also bent at 30-degree and 90-degree angles.  They are clearly recognizable as the working part of the hand-cultivator.  Based on the provided descriptions of the finishing and assembly operations performed in China, the tool blanks are not substantially changed so as to transform them 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 hand-cultivator described in your first production scenario is Vietnam. In considering your second production scenario, there is no dispute that the two pieces of steel, which are produced in Vietnam, are dedicated for use in the finished hand-cultivator.  In other words, they have a pre-determined use at the time they are exported from Vietnam 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 two pieces of steel that leave Vietnam are not clearly recognizable as parts of the hand-cultivator.     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 hand-cultivator incorporates rods that are bent at 90-degree and 30-degree angles.  These angles are crucial to the gardening functions of the tool, which includes tilling soil, removing weeds, aerating soil, etc. In the instant case, the two pieces of steel will be bent in China at a 90-degree angle approximately 1.5 inches from the working tip.  Further in China, the second rod will be bent inward into a V-shape at approximately a 30-degree angle.  They are then welded together, polished, and have a plastic injection handle attached to the steel rod using the “wing” that was stamped in Vietnam as the attachment point.  Therefore, the totality of the evidence leads our office to conclude that the country of origin of the hand-cultivator described in your second production scenario 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