OT:RR:NC:N1:164
M. Jason Cunningham
Sonnenberg & Cunningham PA
780 Fifth Ave. South, Suite 200
Naples, FL 34102
RE: The country of origin of manual and digital torque wrenches
Dear Mr. Cunningham:
In your letter dated April 17, 2025, you requested a country of origin ruling regarding manual and digital
torque wrenches on behalf of your client, Great Star Tools. Technical information was supplied with your
request and in subsequent correspondence.
The items under consideration are described as manual and digital torque wrenches used to apply a certain
amount of torque to fasteners such as nuts and bolts to ensure they are tightened to specification. Both
manual and digital versions contain a ratchet mechanism which can be toggled by a user to limit tightening or
loosening to one direction. The manual version utilizes a mechanical dial and click mechanism to indicate
when a user-specified level of torque is attained. In contrast, the digital version uses a digital display and
sensors to measure and display desired torque in real-time. Based on the submitted information, the manual
torque wrench has a manual dial at the bottom of a knurled metallic handle. The digital version features a
push button interface and digital display at the midpoint of the handle. In addition, the digital version features
a plastic handle which extends distally from the midpoint. In your letter, you confirmed that neither wrench is
imported with sockets.
The production process for both wrenches begins in Vietnam where raw steel is drop-forged into the shape of
a ratchet handle, with head holes already in place, and trimmed of excess material. The forged ratchet handle
from Vietnam is shipped to China where it undergoes machining such as turning, milling, drilling, tapping
and grinding operations to achieve precise dimensions and surface quality. After machining, the ratchet
handles are heat treated by normalizing, quenching, and tempering, and then undergo electroplating to
enhance the surface’s corrosion resistance and aesthetic quality. Finally, the steel ratchet handles are
assembled with various Chinese-origin components. The manual version incorporates small ratcheting
components in the head of the ratchet handle, a knurled handle, a black dial button, a main tube, a sliding
block, a locking screw, nuts, a pressure column, and a torque spring. The digital version similarly
incorporates small ratcheting components in the head of the ratchet handle, but also includes buttons for the
digital interface, a circuit board, a sensor, a battery, a battery holder with wiring, a main tube, a black dial
button, a plastic handle, and a tail hood.
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).
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every
article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly,
indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to
indicate to the ultimate purchaser in the United States, the English name of the country of origin of the
article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to
know by an inspection of the marking on the imported goods the country of which the goods is the product.
The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by
knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should
influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (CBP) Regulations (19 C.F.R. 134) implements the
country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP
Regulations (19 C.F.R. 134.1(b)), defines “country of origin” 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 the marking laws and regulations.
In the instant scenario, it is the opinion of this office that the forged ratchet handles manufactured in Vietnam
are exported to China with a pre-determined end use as torque wrenches. It is the ratchet handle that enables
a user to manually apply the force required for a torque wrench to function. Furthermore, the totality of the
processing and assembly operations in China does not result in a substantial transformation of the forged
ratchet handles from Vietnam. No articles emerge from the operations in China with a new name, character,
or use. This case is similar to determinations made in New York rulings N333798 (July 20, 2023), N326308
(June 15, 2022), and N313169 (July 24, 2020). Accordingly, the country of origin of the manual and digital
torque wrenches will be 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
(C.F.R.), 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 C.F.R. 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 Paul Taylor at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division