The country of origin of bimetal hole saws

N359916 March 31, 2026 OT:RR:NC:CEE010: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 bimetal hole saws Dear Ms. Arabelovic: In your submission dated March 20, 2026, you requested a country of origin ruling for purposes of Section 301 duties, other tariffs and marking. Pictures and descriptions of the manufacturing processes were included in your submission. The products under consideration are bimetal hole saws of various diameters. Each hole saw is made of a High Speed Steel (HSS) strip and a High Carbon Steel (HCS) strip that are welded together and rolled to form the round body of the hole saw. The HSS strip end of the hole saw incorporates milled cutting teeth, while the HSC strip end incorporates a cap and adapter. The adapter enables the hole saw to connect to the mandrel system of a power tool. You have stated that the HHS strips and HCS strips will be purchased from multiple foreign suppliers and that your company will assemble the subject bimetal hole saws in China, Germany and Switzerland under the following four production scenarios: Production Scenario 1: The HHS strip and HCS strip are welded together in Germany, and cutting teeth are milled into the HSS side. The product is then sent to China for final finishing. This includes bending the cutting 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 adapter. 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: The HHS strip and HCS strip are welded together in Germany, and cutting teeth are milled into the HSS side. The cutting teeth are then bent to the left and right before the article is sent to China for final finishing. This includes bending the 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 adapter. 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: The HHS strip and HCS strip are welded together in China. The welded product is then sent to Germany where cutting teeth are welded into the HSS side. The article is subsequently returned to China for final finishing. This includes bending the 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 adapter. 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: The HHS strip and HCS strip are welded together in Switzerland. The welded product is then sent to Germany where the cutting teeth are welded into the HSS side. The article is subsequently sent to China for final finishing. This includes bending the cutting 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 adapter. 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. Friedlaender & 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 welded HHS strip and HCS strip is substantially transformed by milling the cutting teeth of the hole saw. It is our opinion that the creation of these cutting teeth imparts the identity and character of the finished hole saws. Accordingly, we find that under production scenarios 1 through 4 the country of origin of the finished bimetal hole saws is Germany for Section 301, tariff and marking purposes. 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) James Forkan Designated Official Performing the Duties of the Division Director National Commodity Specialist Division