OT:RR:CTF:FTM H310562 JER
Ms. Deborah B. Stern
Sandler, Travis & Rosenberg, P.A.
1000 NW 57th Court, Suite 600
Miami, FL 33126
RE: Country of Origin of Knives, Peelers and Slicers
Dear Ms. Stern:
This is in response to your correspondence, dated February 10, 2020, filed on behalf of your client, Kyocera International, Inc. (“Kyocera”), requesting a prospective ruling pursuant to 19 C.F.R. § 177(a)(1), regarding the country of origin of knives, peelers and slicers. Your request was forwarded to this office by the National Commodity Specialist Division for review. Our ruling is set forth below.
FACTS:
The products at issue are described as Part No. FK-140 (Ceramic Santoku Knife or “knife”); Part No. CP-10N (Ceramic Peeler or “peeler”); and Part No. CSN-202 (Adjustable Ceramic Slicer or “slicer”) (or collectively referred to as “cutting devices”). In your submission, you provide the following description of the subject merchandise and the manufacturing processes:
KNIFE
The subject knife measures approximately 9.84 inches long, and features a blade made of ceramic, which is 5.5 inches long. The ceramic knife is used to cut and/or slice fruits, vegetables, and boneless meats. To begin manufacturing, first the ceramic blade blank is produced in Japan. The blade blank looks like a knife blade when it leaves Japan and is capable of cutting in the blade blank form. When the Japanese blade blank is received in China, the blade blank is sharpened, but the teeth are not cut into the ceramic blade; it is merely grinded in China to a size-down. The grinding only takes one minute to complete. Next, the handle is injection molded on the end of the blade; this [process] does not involve any gluing or screwing of any kind. The knife is then packaged for export to the United States.
PEELER
The subject peeler measures approximately 5.25 inches in length. It features a blade made of ceramic that is partially encased in plastic (referred to as the “rim”) for the user’s buffer and protection and is precisely positioned into the body of the plastic handle. The peeler is pulled in a linear motion on top of the food item it is intended to peel. It can be used on fruits, vegetables, or other items in which only layers of the item need to be peeled away. To begin manufacturing, the blade blank is produced in Japan. Next, the blade is received in China where it is sharpened and grinded down to size. Again, no teeth are grinded into the blade - it is merely sharpened and edged. Next, the blade is inserted into the plastic rim, which is manufactured in China. The blade is affixed to the handle by a ultrasonic welding process. The rim with the blade is then attached to the plastic handle. All of the plastic component parts are made in China. The product is packaged ready for export to the United States.
MANDOLINE SLICER
The subject [mandoline] slicer measures approximately 10 inches in length. It features a blade made of ceramic that is positioned diagonally across the plastic handle component. The plastic paddle/handle allows the user to carefully push the blade against the food item it is intended to slice, but the plastic component does not slice the food item whatsoever; it is simply a handle to allow easy functioning and control to the user while slicing. The slicer can be used to slice vegetable and is ideal for cabbage, carrots, cucumbers, onions, and potatoes. To begin manufacturing, the blade blank is produced in Japan. Next, the blade is received in China and grinded down to size. Again, no teeth are grinded into the blade - it is merely sharpened/edged. Next, the blade is inserted into the plastic paddle/handle from China. The blade is affixed to the paddle by an ultrasonic welding process. All of the plastic component parts are made in China. The product is then packaged ready for export to the United States.
In response to our February 25, 2020 request for additional information, you submitted supplemental information regarding the three blades at issue. Your submission states that the ceramic for each of the three blanks is not glazed. The ceramic used in the subject knives, peelers, and slicers is porcelain, having a fired white body, which will not absorb more than 0.5 percent of its weight of water and is translucent in thicknesses of several millimeters. You further state that the sharpening/grinding process that takes place in China is not required for the blanks to be able to cut/peel/slice, but the sharpening/grinding enhances the blade’s cutting, peeling, or slicing function. Thus, the sharpening of the blades in China makes the blade sharper and therefore makes cutting, peeling, or slicing easier and more precise for a user.
In a supplemental submission received June 4, 2020, you provided information pertaining to the manufacturing process and construction of the handles for both the peeler and slicer. You state that plastic materials are shipped to China, where they undergo injection molding to define their shape. Injection molding is an automated machine process that does not require any technical skills or training. Next, in order to set the ceramic blade into the plastic rim of the peeler or to set the ceramic blade into the plastic body/handle of the slicer, the components undergoes a welding process. Welding applies pressure and ultrasonic vibration to the plastic rim or plastic body/handle, which instantly melts it onto the ceramic blade.
You further state that the particular shape and construction of the peeler and slicer form, enhances the peeling and slicing function of the ceramic blade. More specifically, the slicer is shaped like a paddle with grooves for thin slicing as the user can glide the food on the body of the slicer until the food touches the ceramic blade. The peeler is shaped like a sling-shot (or a “Y-shape”) so that the ceramic blade is suspended while it is pulled down against the food while the skin is peeled off.
On November 2, 2020, CBP held a meeting with counsel for Kyocera to discuss the classification of the subject merchandise. During that meeting, counsel on behalf of Kyocera, provided a supplemental submission which asserted that the peelers and slicers are not substantially transformed by the operations which take place in China but instead form the essence of the finished product.
ISSUE:
What is the country of origin of the finished knife, peeler and slicer?
LAW AND ANALYSIS:
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 imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or 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.” United States v. Friedlaender & Co. Inc., 27 CCPA 297, 302, C.A.D. 104 (1940).
Part 134, Customs Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. § 1304. Section 134.1(b), Customs Regulations (19 C.F.R. § 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.
A “substantial transformation” occurs when an article loses its identity and a new and different article emerges from the processing having a distinctive name, character or use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at 270 (1940) (the Court held that imported wood brush block and toothbrush handles which had bristles inserted into them in the United States lost their identity as such and became new articles having a new name, character and use). In determining whether the combining of parts or materials constitutes a substantial transformation, the determinative issue is the extent of the operations performed and whether the parts lose their identity and become an integral part of the new article. Belcrest Linens v. United States, 6 C.I.T. 204, 573 F. Supp. 1149 (1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). If the manufacturing or combining process is a minor one that leaves the identity of the imported article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 C.I.T. 220, 542 F. Supp. 1026 (1982).
In your submission, you contend that the blanks for the knife, peeler and slicer are not substantially transformed by the operations that take place in China. You argue that the each blank has a predetermined end-use at the time they are imported into China. You add that the essential character of the each blank is imparted by the blade portion of the finished article and that because blanks have a predetermined end-use, these items are not substantially transformed by the sharpening, grinding and assembly with the handle and body parts in China.
KNIFE
U.S. Customs and Border Protection (“CBP”) has long held that the mere assembly of a knife via the attachment of a handle to a blade, minor etching or sharpening of the blank, does not constitute a substantial transformation. In Headquarters Ruling Letter (“HQ”) 559366, dated August 29, 1995, CBP discussed a series of CBP rulings, which found that operations such as sharpening and affixing a handle to a blank did not result in a new product with a new character, identity or use. Instead, the decision in HQ 559366, explained that the overall shape, form and size of the blades (or blanks) were unaltered by the assembly of the finished product. HQ 559366 citing, HQ 733301 dated August 8, 1990, HQ 735181, dated May 17, 1994 and HQ 709090, dated May 6, 1969.
The aforementioned cases determined that the country in which the knife blank was manufactured was the country of origin of the finished knife product because the blank already possessed the shape and form of a finished knife product. This reasoning is supported by the construction and anatomy of a knife. In particular, a knife consists of the blade portion and the handle portion. In most cases, the blade portion and the handle portion are one solid piece with the spine, tip, belly, and cutting edge making up the blade portion and the tang being the handle portion. The parts of a knife are as follows: the spine which (the top edge of the knife); the tip (the front part of the knife where the tip and spine meet); the belly (the body of the knife, which can be curvy or straight); a cutting edge (which is the edge, that once sharpened becomes the cutting edge); and, the tang (the part of the blank that runs through what will become the handle of the knife). Parts of a Knife: Anatomy of a Chef’s Best Friend. https://healthykitchen101.com/parts-of-a-knife/ (Last visited, June 2, 2020). Fundamentally, a knife blank is one singular unit which has been cut into the basic shape of the knife, including the tang. Because of the familiar shape and contours of a knife, in its unfinished and unsharpened state, a knife blank is unmistakably recognized as an unfinished knife. Hence, a blank for a knife already has the character, identity and identifiable use of a finished knife.
This position is consistent with previous CBP rulings concerning the country of origin of “key” blanks. For instance, in HQ 734062, dated April 22, 1991, CBP held that a key blank had “the appearance of an unfinished key” and that the processing of grinding teeth into the key blanks was nothing more than a finishing process and therefore did not constitute a substantial transformation. See also HQ 732057, dated April 16, 1990 (in which CBP determined that a circular knife blade did not lose its identity when it was attached to the handle of the rotary cutting instrument).
Furthermore, the Court of Appeals for the Federal Circuit (“CAFC”) held that, in situations where the manufacturing or combining process is merely a minor one, which leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff'd, 702 F.2d 1022 (Fed. Cir. 1983). In the instant case, the subject knife blank is shaped to include both the shape and form of a blade and a tang. The knife blank has a spine, a belly, a cutting edge and a tang to which a handle will later be attached. Hence, the blank has the approximate shape and form of a finished knife. The attachment of the handle to the tang and the sharpening of blade are not complicated processes and leave the identity and characteristics of the knife intact. Accordingly, we find that the knife blank is not substantially transformed in China and that the country of origin for the knife is Japan.
PEELER & MANDOLINE SLICER
Unlike the blank for a knife or a key, the blanks for the peeler and mandoline slicer do not have the shape, form or identity of the finished product. Instead, the blanks for the peeler and slicer are box shaped and rectangular shaped items, respectively, without any distinctive appearance, unique shape or characteristics, which would indicate or suggest any particular commercial identity or identifiable use. The peeler, for instance, is a single edged peeler and is dissimilar to a dual blade swivel peeler, which has a distinctive valley in the center, surrounded by two connecting and curved blades. Additionally, we disagree that the blanks for peeler, slicer or the knife are capable of cutting, peeling or slicing in a manner similar to a finished blade. When comparing the blanks with the sharpened blade, it is clear by the indentation and thinning of the cutting edge that the edge has been sharpened creating a cutting or slicing edge not apparent with the blanks. Prior to which, the blanks are merely thin ceramic blocks. It is only after these ceramic blocks have been sharpened and fitted into their respective handles, do these blanks begin to assume the identity, function and characteristics of the finished article. As such, the peeler and slicer blanks rely on additional operations and components to form their identity.
In HQ W556902, dated February 3, 1993, CBP addressed the country of origin of razor cartridges, which were manufactured in Mexico and razors, which were manufactured the United States. The razor cartridges and the razors would ultimately be produced into disposable razors in Mexico. The base of the cartridge, known as the “platform and the “cap”, which is the upper portion combine to form what is referred to as the cartridge housing, were both produced in Mexico. The platform, cap and remaining plastic components were produced from plastic pellets as a result of injection molding conducted in Mexico. Three different blades, which were of U.S. origin, were stacked and separated by spacers between the platform and the cap of the cartridge housing. The blades were positioned inside the using four protruding plastic posts to form the razor cartridge. Finally, the complete razor cartridge was affixed to a plastic handle creating the final disposable razor product. In HQ W556902, CBP determined that the razor blanks along with the plastic pellets were substantially transformed into a new product with a new identity and use by virtue of the aforementioned process.
Similarly, in HQ 733171, dated July 2, 1990, CBP determined that a razor cartridge was substantially transformed by the assembly operations (in the U.S.) because the assembly was essential to creating a functional article of commerce. In HQ 733171, the final assembly of the finished razor involved gluing the head into the handle, inserting a battery into the razor and attaching a cartridge. Prior to the final assembly, none of the component parts, including the razor, presented as an identifiable or functional article of commerce. See also, New York Ruling Letter (“NY”) J85506, dated June 13, 2003, concerning the country of origin marking of imported razors.
In the case of the subject peeler, the blade blank is sharpened, and edged. Next, the blade is placed into a rim, which is thereafter fitted into the sling shot shaped handle. It is only after being sharpened, edged, and combined with the plastic rim housing does the peeler begin to assume the identity and functionality of an item that is intended to cut, slice or peel. In this regard, the subject blank for the peeler is similar to the razors of HQ W556902 and HQ 733171, in that the blank does not have an identity, character or functional use until it is sharped and combined with the plastic rim housing.
Much like the razor blades of HQ W556902 and HQ 733171, the subject blanks for the peeler and the blanks for the mandoline slicer are substantially transformed into finished products with a new identity, character and use once sharpened and affixed to the plastic rim housing and the paddle body handle. In each instance, it is only after the blanks are sharpened, and edged in China, does it become apparent that the rectangular shapes are intended to be blades. Prior to sharpening, these blanks have no shape or characteristics, which are indicative of a cutting device or any particular commercial item. Secondly, once the sharpened blade is combined with the paddle body handle and the rim housing, there unique purpose begins to manifest. In particular, the paddle body handle and the rim provide the platform and housing, which allow the blades to perform their primary purpose in the manner intended. Without the body and the rim, these blades could not perform their primary function and would have no recognizable purpose.
In the case of the mandoline slicer, the blade blank is sharpened, and edged. Next, blade blank is assembled together with the paddle. The paddle of the slicer is what provides this item with its distinctive capabilities. Specifically, an adjustable dial located on the back of the slicer paddle handle allows the slicer to cut food items in four different ranges of thickness, from very thin to very thick. The subject mandoline slicer is marketed as being “ultra sharp” with the capacity to provide perfect slices and four different widths. Based on the diagram provided, the paddle handle of the slicer guides the food items as they pass over the blade for the desired cut. Moreover, our internet research indicates that the subject mandolin slicer is capable of performing several different types of “mandoline cuts,” which include grating, the basic slice cut, and the julienne cut. These different “mandoline cuts” are performed by the same blade but require adjustments to the paddle body handle in order to carry out these specific and unique cutting techniques. Hence, like the razors for the razor cartridges and razor heads of HQ W556902 and HQ 733171, the commercial identity and identifiable use of the blanks for the slicer, only become apparent once it is sharpened, edged, and assembled into the plastic paddle body handle.
HOLDING:
Based on the facts provided, the knife blanks from Japan are not substantially transformed into knives by the processes taking place in China. As such, the country of origin of the knife is Japan. However, the blanks for the peeler and mandoline slicer are substantially transformed into finished peelers and slicers, respectively, by the processes that takes place in China. As such, the country of origin of the peeler and slicer is China.
With respect to the country of origin marking of FK-140 knife, the country of origin marking requirements are met if the knife is marked as “Made in Japan” or “Product of Japan, further processed in China.” Regarding the peeler and the slicer, these articles are to be marked “Made in China,” “Product of China,” “China,” or “Assembled in China.”
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Yuliya A. Gulis, Chief
Food, Textiles and Marking Branch