CLA-2-82:OT:RR:NC:N1:118
Mr. Zachary Hill
Central Purchasing LLC
26541 Agoura Rd
Calabasas, CA 91302
RE: The tariff classification and country of origin of an 8 Piece Locking Hex Key Set
Dear Mr. Hill:
In your letter dated July 9, 2020, you requested a tariff classification and country of origin ruling.
The merchandise under consideration is described as an 8 Piece Locking Hex Key Set, item number 56927. It is designed for turning Allen screws in Metric and SAE sizes. The set consists of eight individually sized hex keys that are connected to both ends of a handle. The handle, which is made of metal and plastic, acts as a storage case when the hex keys are folded inward. Each hex key can be unfolded and locked into five different positions when in use. This allows for maximum torque and access into tight work spaces.
You suggested classifying the item as a screwdriver within subheading 8205.40.0000, Harmonized Tariff Schedule of the United States (HTSUS). You cite New York Ruling N259198, as a basis for this classification. We disagree. When in use, the individual hex keys described in that ruling were folded outward into a single 180 degree angle. The instant 8 Piece Locking Hex Key Set incorporates individual hex keys that are unfolded and locked into five different positions. The exerted twisting force applied to the handle/case, when in these positions, is generally perpendicular to the main axis of the fastener. This action is similar to that of other wrenches, not screwdrivers.
The applicable subheading for the Locking Hex Key Set, item number 56927, will be 8204.11.0060, HTSUS, which provides for hand-operated spanners and wrenches (including torque meter wrenches but not including tap wrenches); socket wrenches, with or without handles, drives and extensions; base metal parts thereof: hand-operated spanners and wrenches, and parts thereof: nonadjustable, and parts thereof: other (including parts). The rate of duty will be 9% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
You also requested a country of origin determination for the 8 Piece Locking Hex Key Set. The production process begins in Taiwan, where Taiwanese raw steel is used to manufacture each hex key. At the Taiwan factory, the hex keys are cut, chamfered, bent to shape, heat-treated and surface coated. The hex keys are then exported to China for assembly into the handle/case. The finished product is then packed and shipped to the United States.
Section 134.1(b), Customs 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 this part;…”
A substantial transformation occurs when an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986).
It is our view that the individual hex keys, which are manufactured in Taiwan, do not become an article with a new name, character, or use because of the assembly and attachment of the handle/case in China. It is therefore the opinion of this office that the country or origin of the 8 Piece Locking Hex Key Set, described in your production scenario, is Taiwan.
This ruling is being issued under the provisions of Part 177 of the Customs 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, National Import Specialist Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division