OT:RR:NC:N1:118
M. Jason Cunningham
Sonnenberg & Cunningham PA
780 Fifth Ave South, Suite 200
Naples, FL 34102
RE: The country of origin of a Reversible Ratcheting Wrench
Dear Mr. Cunningham:
In your letter dated April 9, 2025, on behalf of your client, Great Star Industrial USA, LLC, you requested a
country-of-origin determination for purposes of Section 301 and IEEPA duties. Pictures of the item in
different stages of manufacture were included with your submission, along with a detailed narrative of the
manufacturing processes.
The item under consideration is identified as a Reversible Ratcheting Wrench. The tool has the appearance
of a box-end wrench, however the two box-ends incorporate a ratcheting mechanism. It is made primarily of
steel, apart from the plastic and metal components that make up the ratcheting mechanism.
You state that the manufacturing process begins in Vietnam, where raw steel rods are cut to length. The steel
is then forged into the final size, shape, and form of the ratchet wrench, except for the two end holes. The
tool is then sent to China where the two holes are machined, and it is heat-treated and polished. Finally, the
ratcheting mechanism is assembled into the end holes with Chinese origin springs, clips, pins and small
bushings before export to the United States.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and other duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter
H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 1982).
This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States,
16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
Regarding the Reversible Ratcheting Wrench, it is our view that the raw steel rods are substantially
transformed in Vietnam into the essence of the finished tool. Before leaving Vietnam, the steel is in the final
shape and form of the tool. Based on the provided descriptions and pictures of the machining and assembly
operations performed in China, the tool is not substantially changed so as to transform it into a new article
with a different name, character, or use. ?It is therefore the opinion of this office that the country of origin of
the Reversible Ratcheting Wrench is Vietnam.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
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