CLA-2 OT:RR:NC:N1:121
Sandra Tovar
CST, Inc.
500 Lanier Ave., W. Suite 901
Fayetteville, GA 30214
RE: The country of origin of self-tapping screws from Taiwan
Dear Ms. Tovar:
In your letter dated December 29, 2018, you requested a country of origin ruling on behalf of Atlas Bolt and Screw Company, LLC.
The articles under consideration are self-tapping screws that are used in the commercial construction market. You identified four different part numbers, and four slightly different manufacturing scenario as specified below.
The first scenario involves the manufacturing of part number 89971 – which you describe as a self-tapping screw having shanks or threads with a diameter of less than 6 mm, of stainless steel. This part is made from coiled steel wire of Taiwanese origin. In Taiwan, the wire is cold formed into a screw through a process of heading, pointing and threading (wire is cut to length, head of screw is shaped, point of screw is formed and the thread is formed). The screw is also hardened with heat and then surface and rust protected in Taiwan. The screw is then exported to China where it will be inspected for defects. A washer of Taiwanese or Vietnamese origin will be attached. The screw will then be inspected, packaged, and exported to the United States.
The second scenario involves the manufacturing of part number 00112K Painted – which you describe as a self-tapping screw having shanks or threads with a diameter of 6 mm or more, of stainless steel. This part is made from coiled steel wire of Taiwanese origin. In Taiwan, the wire is cold formed into a screw through a process of heading, pointing and threading as described in scenario 1. The screw is also hardened with heat and then surface and rust protected in Taiwan. The screw is then exported to China where it will be inspected for defects. A washer of Chinese origin will be attached, the screw will be painted, inspected, packaged and then exported to the United States.
The third scenario involves the manufacturing of part number PN 82642X – which you describe as a self-tapping screw having shanks or threads with a diameter of less than 6mm, of other than stainless steel. In this scenario, the screw is made from coiled steel wire of Chinese origin. In Taiwan, the steel wire is cold formed through a process of heading, pointing and threading. The screw is also hardened with heat and then surface and rust protected in Taiwan. The screw is then exported to China, where it will be inspected for defects. A washer of Taiwanese or Vietnamese origin is attached, the screw and washer are painted, the screw is then inspected, packaged and exported to the United States.
The fourth scenario involves the manufacturing of part number 15049 – which you describe as a self-tapping screw having shanks or threads with a diameter of 6 mm or more, of other than stainless steel. This scenario is similar to scenario one. This part is made from coiled steel wire of Taiwanese origin. In Taiwan, the wire is cold formed into a screw through a process of heading, pointing and threading. The screw is then exported to China where a washer of Taiwanese or Vietnamese origin will be attached. The screw will then be inspected, packaged, and exported to the United States.
In 19 C.F.R. § 134.1(b), “country of origin” is defined 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.”
In this instance, the “name, character and use” test must be applied in order to determine whether a substantial transformation has occurred. The court has said that “A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use that differs from the original material subjected to the process”.
The court in National Hand Tool Corp. v. United States determined that imported forgings, in that case, were not substantially transformed as (1) the articles had been forged “into their final shape before importation” into the United States and (2) “the form of the components remained the same” after the processes performed in the United States. The court concluded that no substantial change in name, character or use had occurred as a result of the processing performed in the United States.
Likewise, in this case, the articles are all manufactured into screws in Taiwan, prior to their exportation to China. Their use is predetermined prior to processing in China. The articles have the same name both before and after processing in China. In addition, the simple assembly operation, the inspection, painting and packaging performed in China do not result in a substantial transformation. Thus, the country of origin for each scenario, as described above, 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, contact National Import Specialist Jennifer Jameson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division