The country of origin of carbide hole saws

N350001 June 13, 2025 OT:RR:NC:N1:118 CATEGORY: Origin Alma Aravebelovic Robert Bosch LLC Oakbrook Terrace Tower One Tower Lane, Suite 3100 Oakbrook Terrace, IL 60181 RE: The country of origin of carbide hole saws Dear Ms. Aravebelovic: In your submission dated June 10, 2025, you requested a country of origin ruling for purposes of Section 301 duties, IEEPA tariffs and marking. Pictures and descriptions of the manufacturing processes were included in your submission. The products under consideration are carbide hole saws of various diameters. Each hole saw consists of a steel body with tungsten carbide tipped teeth. The other end of the hole saw incorporates a cap and adaptor. The adaptor enables the hole saw to connect to the mandrel system of a power tool. You have stated that your company plans to assemble the subject carbide hole saws in Switzerland, the United States, and China under 5 production scenarios. Under the first 4 production scenarios, your company will purchase steel strip material on coil from Germany or Austria and manufacture the carbide hole saws as follows: Production Scenario 1: In Switzerland, saw teeth are milled or laser cut into the steel strip coil. Tungsten carbide tips are then welded to the teeth, and the tungsten carbide tips are ground into their final cutting shape. The product is then sent to China for final finishing. This includes bending the carbide-tipped teeth to the left and to the right, punching slots into the sides of the saw blade strip, and punching the saw blade strip to its correct length, depending on the diameter of the hole saw. The saw blade is then rolled and formed to become round, and it is heat-treated. Next, the ends of the rolled body are welded together, and the body and the cap are welded together along with the adaptor. The hole saw is then painted, tempered, treated with rust protection oil and brand information is printed on the body. Finally, the finished hole saw is packaged for export to the United States. Production Scenario 2: In Switzerland, saw teeth are milled or laser cut into the steel strip coil. Tungsten carbide tips are then welded to the teeth, and the tungsten carbide tips are ground into their final cutting shape. The carbide-tipped teeth are also bent to the left and to the right. The article is then sent to China for final finishing. In China, slots are punched into the sides of the saw blade strip and the strips are punched to the correct length, depending on the diameter of the hole saw. The saw blade is then rolled and formed to become round, and it is heat-treated. Next, the ends of the rolled body are welded together, and the body and the cap are welded together along with the adaptor. The hole saw is then painted, tempered, treated with rust protection oil and brand information is printed on the body. Finally, the finished hole saw is packaged for export to the United States. Production Scenario 3: In Switzerland, saw teeth are milled or laser cut into the steel strip coil. Tungsten carbide tips are then welded to the teeth, and the tungsten carbide tips are ground into their final cutting shape. The carbide-tipped teeth are also bent to the left and to the right. Slots are punched into the sides of the saw blade strip and the strips are punched to the correct length, depending on the diameter of the hole saw. The article is then sent to China for final finishing. In China, the saw blade is rolled and formed to become round, and it is heat-treated. Next, the ends of the rolled body are welded together, and the body and the cap are welded together along with the adaptor. The hole saw is then painted, tempered, treated with rust protection oil and brand information is printed on the body. Finally, the finished hole saw is packaged for export to the United States. Production Scenario 4: In Switzerland, saw teeth are milled or laser cut into the steel strip coil. Tungsten carbide tips are then welded to the teeth, and the tungsten carbide tips are ground into their final cutting shape. The carbide-tipped teeth are also bent to the left and to the right. Slots are punched into the sides of the saw blade strip and the strips are punched to the correct length, depending on the diameter of the hole saw. It is also rolled and formed to become round. The saw blade is then sent to China where it is heat treated. The ends of the rolled body are welded together, and the body and the cap are welded together along with the adaptor. The hole saw is then painted, tempered, treated with rust protection oil and brand information is printed on the body. Finally, the finished hole saw is packaged for export to the United States. Under Production Scenario 5, your company will purchase steel strip material on a coil from the United States and manufacture the carbide hole saws as follows: Production Scenario 5: In the United States, saw teeth are milled or laser cut into the steel strip coil. Tungsten carbide tips are then welded to the teeth, and the tungsten carbide tips are ground into their final cutting shape. The carbide-tipped teeth are also bent to the left and to the right. The article is then sent to China for final finishing. In China, slots are punched into the sides of the saw blade strip and the strips are punched to the correct length, depending on the diameter of the hole saw. The saw blade is then rolled and formed to become round, and it is heat-treated. Next, the ends of the rolled body are welded together, and the body and the cap are welded together along with the adaptor. The hole saw is then painted, tempered, treated with rust protection oil and brand information is printed on the body. Finally, the finished hole saw is packaged for export to the United States. When determining the country of origin for purposes of applying current trade remedies under Section 301 and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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). Additionally, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” 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 the marking laws and regulations. In our view, the steel strip material on coil is substantially transformed by milling or laser cutting saw teeth into it, welding the tungsten carbide tips onto the teeth, and grinding the tungsten carbide tips to their final cutting shape. It is our opinion that the creation of the carbide-tipped teeth imparts the essence of the finished saw blades. Accordingly, we find that under production scenarios 1 through 4 the country of origin of the carbide hole saws is Switzerland. We further find that under production scenario 5 the country of origin of the carbide hole saws is 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 Anthony Grossi at anthony.e.grossi@cbp.dhs.gov. Sincerely, (for) Steven A. Mack Director National Commodity Specialist Division