The country of origin of a tap drill bit

N343610 November 8, 2024 OT:RR:NC:N1:118 CATEGORY: Origin Li Ming Yangzhou Suwo Tools Co., Ltd. Zhou LouYangzhou 225200China RE:  The country of origin of a tap drill bit Dear Ms. Ming: In your submission dated October 29, 2024, you requested a ruling on the country of origin of an article you refer to as a “Tap” or a “Drill Tap Bit” that will be manufactured in either South Korea, Thailand or Vietnam, and then finished in China.  You have stated that the bit will be imported into the United States in different surface colors, packaging, sizes for drilling thread diameters, various flute types (e.g., straight, spiral), and various shank shapes (e.g., hex, round).  Pictures and a description of the manufacturing process were provided with your submission.  The “Tap” or “Drill Tap Bit” is commonly identified in the industry as a tap drill bit.  You have stated that this bit is made of high-speed steel alloy (incorporating by weight more than 0.2% molybdenum and tungsten).  A tap drill bit can be attached to hand tools, power tools, drill presses and other rotating action tools for drilling holes in plastic, wood, or metal.  It is used to create a hole that will be threaded for a screw or bolt.  Tap drill bits have a tapered end that help guide the tap into the hole, and they also have flutes that help remove the material as they rotate. The manufacturing process for the tap drill bit begins in South Korea, Thailand or Vietnam, where a high-speed steel rod is machined into the cylindrical shank and conical body of the bit.  Flutes and a rough cutting edge are also ground into the body of the bit.  The drill bit is then exported to China, where threads and the tip are machined into the blank.  The shank is also machined to precise measurements.  Finally, the bit is color coated, laser marked and packaged for retail sale. Regarding your request for the appropriate country of origin of the tap drill bit, 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 machining of the high-speed steel rod into the cylindrical shank and conical body of the bit in either South Korea, Thailand or Vietnam, that substantially transforms the steel rod into a new and different article of commerce, i.e., a tap drill bit.  Based on the provided description and pictures of the finishing operations performed in China, the machined drill bit 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 this office that the country of origin of the tap drill bit is either South Korea, Thailand or Vietnam, depending on where the high-speed steel rod is machined into the cylindrical shank and conical body of the bit. 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