CLA-2:OT:RR:NC:N1:121
Samuel McClure
CV International Inc.
1800 Associates Lane, Suite A
Charlotte, NC 28217
RE: The country of origin of hex head steel screws
Dear Mr. McClure:
In your letter dated February 24, 2020 you requested a country of origin ruling on behalf of Southeast Nails LLC.
The articles under consideration are described as hex head, double lead thread steel screws with a T-17 cut. The screws will vary in length from 1” (25.5 mm) to 3” (76 mm) with a diameter of 9 gauge (3.7 mm). They are made from steel carbon 1022 and each size will be shipped to the U.S. in 50, 55 and 100 count bulk boxes. You note these are self-drilling roofing screws for 16 to 24 gauge steel deck, wood, plywood and OSB.
Your proposed production process involves using steel carbon rods from Thailand. The screw will be formed entirely in Thailand including forming the head, threading, cutting the tapping point and heat treating. The screw will then by shipped to Taiwan where it will be galvanized, powder coated, and fitted with an EDPM (ethylene propylene diene monomer) rubber washer. The finished screws will then be packed in their point of sale boxes and shipped 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 manufactured into screws in Thailand, prior to their exportation to Taiwan. Their use is predetermined prior to processing in Taiwan. The articles have the same name both before and after processing in Taiwan. In addition, the galvanizing, powder coating, simple assembly operation, and packaging performed in Taiwan do not result in a substantial transformation. Thus, the country of origin as described above is Thailand.
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