The country of origin of a steel concrete-form insert

N342726 October 11, 2024 OT:RR:NC:N5:121 CATEGORY: Origin Demi Chen King Century Group 4F-1, No. 30, Ta Tun 10th StreetTaichung 403Taiwan RE:  The country of origin of a steel concrete-form insert Dear Ms. Chen: In your letter dated September 19, 2024, you requested a country of origin ruling for the Wood Knocker II+ concrete cast-in-place form inserts, part numbers PFM2521350 and PFM2525834. The products under consideration are described as Wood Knocker II+ concrete cast-in-place form inserts. Part number PFM2521350 has a diameter of 3/8-1/2" and part number PFM2525834 has a diameter of 5/8-3/4". Each product consists of an internally threaded hex head steel insert, molded plastic sleeve, and three breakaway steel-wire nails. They are designed to provide “hanger” attachment points for mechanical, electrical, plumbing and fire protection systems that connect to concrete floor, roof or wall slabs. The steel insert functions as the attachment point and enables externally threaded rods or bolts to be inserted into the cured concrete. The plastic sleeve functions to hold the steel insert in position and provide color-coding to indicate the insert size to the user. The nails function to fasten the insert and plastic sleeve to the formwork that is used to support newly poured concrete while it dries and hardens. In ruling N318227 we determined that the steel insert imparts the essential character. You explain that the production of the steel insert of the Wood Knocker II+ begins in Thailand with steel rod that is sourced and purchased in Thailand. The rod is then cold-form pressed into the shape of the steel insert. During the cold-form processing, the internal spacing for two different sized threads and a locking mechanism gap are created. The steel inserts are then shipped to China where they are threaded, zinc plated, assembled with the plastic sleeve and three breakaway steel wire nails, and packed for shipment to the U.S. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. The "country of origin" is defined in 19 CFR 134.1(b) as "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 Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer, the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight, and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted that “when the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Energizer at 1319, citing as an example, National Hand Tool Corp. v. United States, 16 C.I.T. 308, 310, aff’d 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article.Regarding the country of origin of the Wood Knocker II+ part numbers PFM2521350 and PFM2525834, in our opinion, the steel insert is the predominant component of this article. Further, the manufacturing work performed in Thailand, consisting of steel rod that is sourced and cold-form pressed into the final shape of the insert to include a custom internal spacing that accommodates two different sized fasteners and creates a locking mechanism, produces a steel insert of Thai origin. However, the additional operations that occur in China, where the steel insert is threaded and zinc plated, and then assembled with a plastic sleeve and three steel nails, are not complex and do not result in a substantial transformation of the Thai steel insert. Therefore, based on the facts presented, the Wood Knocker II+ concrete cast-in-place form inserts, part numbers PFM2521350 and PFM2525834, are considered products of Thailand for origin and marking purposes at time of importation into the United States. 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 Jennifer Jameson at jennifer.d.jameson@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division