CLA-2-83:OT:RR:NC:N1:121
Justin Byczek
Lisa Ragan CHB
1 Clay Place
Hapeville, GA 30354
RE: The country of origin of metal lock components
Dear Mr. Byczek:
In your letter dated October 17, 2019 you requested a country of origin ruling on behalf of GMS Industries, Inc.
The articles under consideration are identified as components of a lock.
Item IC7A26D includes a metal inner plug, cylinder housing and sleeve. According to your request, part IC7A26D is manufactured from bar stock in Taiwan and then exported to China where additional processing includes broaching, brushing, plating and minor assembly. You state that 82% of the value originates in Taiwan.
Item ICS26DST is a metal outer cylinder housing body. It is manufactured from bar stock in Taiwan and then exported to China where additional processing includes brushing, plating and minor assembly. You state that 72% of the value originates in Taiwan.
Item M118D26D is a metal dummy mortise cylinder. It is manufactured from bar stock in Taiwan and then exported to China where a face cover is added. You state that 80% of the value originates in Taiwan.
According to your request, the lock components entering into and exporting from China are classified in the same tariff code, specifically subheading 8301.60.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Padlocks and locks (key, combination or electrically operated), of base metal: keys and parts of any of the foregoing articles, of base metal: Parts.”
With regard to your request for the appropriate country of origin of the lock components, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means 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; As stated in HQ 735009 dated July 30, 1993, “The country of origin is the country where the article last underwent a “substantial transformation”, that is, processing which results in a change in the article's name, character, or use”. In addition, the court has held that “A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, and use that differs from the original material subjected to the processing.” However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character and use has been produced. No one factor is decisive. Assembly operations that are minimal will generally not result in a substantial transformation. In this instance, it is this office’s opinion that the manufacturing operations of the lock components in Taiwan that provide the essence of these articles. These items are not substantially changed by either the addition of the Chinese components, the broaching, brushing, plating or the minor assembly operations performed in China. In view of these facts, the country of origin of the lock components, part numbers IC7A26D, ICS26DST and M118D26D, would be 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