The country of origin of a Pliers Wrench

N339039 April 5, 2024 OT:RR:NC:N1:118 CATEGORY: Origin Jing Zhang Weihai Maxpower Advanced Tool Co., Ltd. No.8-9, 8-22 Huizhou Road, WendengWeihai 264400China RE:  The country of origin of a Pliers Wrench Dear Ms. Zhang: In your letter dated March 22, 2024, you requested a country of origin ruling.  The imported merchandise is identified as a Pliers Wrench.  This hand-operated tool allows the user to grip pipes, nuts, plates, and other irregularly shaped work pieces.  The tool is designed with jaws that can adjust to multiple positions at a variety of widths and has handles that are at an angle to the jaws.  It is also characterized by a grooved joint, which allows the user to move the handles apart to increase jaw size and enlarge grip capacity.  The grooved joint incorporates a push-button mechanism that facilitates the opening and closing of the jaws. You have stated that the Pliers Wrench is produced in two countries, South Korea and China.  The three main components of the tool include a one-piece upper jaw and handle, a lower handle, and a lower jaw.  The one-piece upper jaw and handle and lower handle are forged to their approximate size and shape in South Korea from Chinese-origin steel bars.  These components are then shipped to China where each are machined, polished, and heat-treated.  Additionally, the grooved joint is milled into the upper handle and a hole is drilled into the lower handle.  The lower jaw is completely manufactured in China, through a steel casting process.  Next, the one-piece upper jaw and handle, the lower handle, and Chinese-origin lower jaw are assembled with a Chinese-origin push-button mechanism.  This includes a pivot, flat spring, rivet, and button.  Finally, the handles are PVC dipped and the finished Pliers Wrench is packaged for retail sale. Regarding your request for the appropriate country of origin for the finished Pliers 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 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 country of origin for the finished Pliers Wrench, there is no dispute that the one-piece upper jaw and handle, and lower handle, which are produced in South Korea, are dedicated for use in the specifically designed Pliers Wrench.  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 one-piece upper jaw and handle, and lower handle that leave South Korea are not clearly recognizable as parts of the finished Pliers Wrench.    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 lower jaw, which is entirely manufactured in China, is a vital component to the finished tool’s functionality.  We also note the importance of the grooved joint, which is milled in China, and the Chinese-origin push-button mechanism.  Therefore, the totality of the evidence leads our office to conclude that the country of origin of the Pliers Wrench 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