MAR-2-05 CO:R:C:V 734261 NL
Mr. Brian Johnson
Border Brokerage Company, Inc.
P.O. Box B
Blaine, WA 98230
RE: Country of Origin Marking - Axes and Axe Heads; Antidumping;
Substantial Transformation; T.D. 54707(9) Applied.
Dear Mr. Johnson:
This is in response to your letter of July 17, 1991,
submitted on behalf of Keystone Supplies, in which you request a
ruling concerning the country of origin marking requirements for
certain axes and axe heads.
FACTS:
Keystone assembles the axe in Canada using a head
manufactured in China and a handle manufactured in the U.S. You
also have advised us that the axe is sold with a steel wedge and
a wood wedge, manufactured in the U.S., but for purposes of this
ruling it is not necessary to consider the country of origin of
these articles.
ISSUE:
What is the country of origin, for marking purposes, of an
axe manufactured from a steel head of Chinese origin and a U.S.-
origin wooden handle?
LAW AND ANALYSIS:
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 U.S. shall be marked in a conspicuous
place as legibly, indelibly, and permanently as the nature of the
article (of 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.
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. In general, as provided at 19 CFR 134.1, the
country of origin of an article is the country in which it was
manufactured, produced, or grown. Additional processing or
manufacture in another country must effect a substantial
transformation in order to render such other country the country
of origin. A substantial transformation is said to occur if
processing or manufacture imparts a new name, character, or use
to the imported article. An article of foreign origin is subject
to the marking requirements unless, after importation into the
U.S., it undergoes a substantial transformation.
Applying these principles to the instant request, it is the
view of this office that the axe head which is manufactured in
China does not become an article with new name, character, or use
by reason of the attachment to it of a U.S.-origin wooden handle
in Canada. For purposes of country of origin marking the country
of origin of the axe head is China.
This position is based upon a number of previous Customs
determinations regarding axe heads and similar articles. In T.D.
54707(9) (October 8, 1958) Customs held that axe heads imported
separately or with American-made handles must be marked with the
words "Axe Head Made In (country of origin)" or words of similar
import. Although the decision did not discuss the substantial
transformation principle, it is evident that the underlying
rationale was that the attachment of a handle to an axe head does
not change the axe head into a new article, or change its country
of origin. To similar effect was the determination in
Headquarters Ruling Letter 711069 (September 20, 1976), in which
Customs ruled that foreign origin wooden handles, when combined
with axe heads of U.S. origin, were required to be marked. The
attachment of a wooden handle has also been found not to effect a
change in the foreign status of hay forks, rakes, hoes, spades,
and the like (T.D. 55033(5)(January 14, 1960)); and hammer heads
(HRL 734246 (October 21,1991)). Most recently, we determined in
HRL 950005 (January 9, 1992), that the assembly of a Chinese
sledge hammer head with a Canadian handle in Canada was not a
substantial transformation, and that both the head and the handle
were required to be marked. This ruling modified DD 860604 which
had determined in part that the country of origin of the sledge
hammer was Canada. In sum, the previous decisions with respect
to articles of this type, and specifically with respect to axe
heads, compel the conclusion in this case that the attachment of
U.S. handles to Chinese-origin axe heads does not affect the
status of the latter as a product of China for country of origin
marking purposes.
You have also asked, in view of the assembly of finished
axes in Canada by the attachment of Chinese-origin heads to
U.S.-origin handles, whether the axes are subject to antidumping
duties. Your submission advises that in the opinion of Customs
officials in Blaine, Washington, the axes are subject to the
duties assessed pursuant to the Department of Commerce
antidumping order in Heavy Forged Hand Tools, Finished or
Unfinished, With or Without Handles From the People's Republic of
China, 56 Fed. Reg. 6622 (February 19, 1991). Inasmuch as the
caption of the order specifies finished and unfinished axes,
imported with or without handles, it would appear that finished
axes are within the scope of the antidumping order. However, for
guidance in this matter we suggest that you refer questions to
the Office of Compliance, International Trade Administration,
U.S. Department of Commerce (202-377-4851).
HOLDING:
An axe head manufactured in China is not substantially
transformed in Canada by the attachement of a U.S.-origin wooden
handle, and in accordance with previous decisions is required to
be marked as a product of China.
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: Area Port Director of Customs
Blaine, Washington