OT:RR:NC:N1: 118
Jing Zhang
Weihai Maxpower Advanced Tool Co., Ltd.
No.8-9, 8-22 Huizhou Road, Wendeng Weihai 264400 China
RE: The country of origin of a pipe wrench
Dear Mr. Zhang:
In your letter dated April 14, 2023, you requested a country of origin ruling for a pipe wrench. Pictures and a description of the manufacturing process were provided with your submission. The imported tool is commonly used to turn threaded pipe and pipe fittings for assembly or disassembly.
The imported pipe wrench is produced in two countries, South Korea and China. The production process begins in South Korea, where the wrench’s handle is cast from Korean-origin raw aluminum into its approximate size and shape. Also in Korea, the adjustable top jaw is forged from Chinese-origin steel bar into its approximate size and shape. The handle and the top jaw are then shipped to China for further processing. Threads and teeth are milled into the top jaw, and it is heat-treated. A connection joint is milled into the handle and a hole is drilled into the bottom edge. The handle is also powder-coated. The wrench’s fixed jaw is produced wholly in China from raw steel bar. Teeth are milled onto one side of the jaw, and it is heat-treated. An adjusting nut is also manufactured in China. The handle, adjustable top jaw, fixed jaw and adjusting nut are then assembled with a Chinese-origin pin and spring. Finally, the finished pipe wrench is packaged and shipped to the United States.
Regarding your request for the appropriate country of origin of the pipe wrench, 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;
The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See Nat’l Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). 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, and assembly operations that are minimal will generally not result in a substantial transformation.
In regard to the finished pipe wrench, there is no dispute that the handle and adjustable jaw, which are produced in South Korea, are dedicated for a use in the specifically designed pipe wrench. In other words, they have a pre-determined use at the time they are exported from South Korea to China. However, while this is a consideration, as noted by the court in National Hand Tool, this does not preclude a finding of substantial transformation. Unlike the tools in National Hand Tool that were in the final form at the time they left Taiwan and were clearly recognizable by name, although not finished; the handle and adjustable top jaw that leave South Korea are not clearly recognizable as parts of a pipe wrench. As the court stated in National Hand Tool, we must look at the totality of the evidence. We also must consider the product at issue, how it functions, and the purpose of the components within it carrying out its function. A pipe wrench has two serrated jaws that are tightened by an adjusting nut and dig into the pipe for grip. The top serrated jaw adjusts up and down to fit different size pipes. Therefore, the fixed jaw and adjusting nut are equally important for the pipe wrench to operate. When we consider that the roughly formed handle and adjustable top jaw are shipped to China, prepared for assembly, and assembled with the Chinese-origin fixed jaw and adjusting nut, the totality of the evidence leads us to conclude that the country of origin of the pipe wrench is China.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
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, please contact National Import Specialist Anthony Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division