CLA-2-82:OT:RR:NC:N1:118
Eric Lee
Zhangjiagang Tianhua Hardware Co., Ltd.
XinLe Rd., DaXing Town
Zhangjiagang 215636
China
RE: The tariff classification and country of origin of a chisel
Dear Mr. Lee:
In your letter dated May 7, 2025, you requested a tariff classification and country of origin determination
ruling on a steel chisel. Pictures and a description of the manufacturing process were provided with your
submission.
A chisel is a hand tool with a cutting edge that is used for carving or cutting a hard material, such as wood.
This can be performed through hand pressure or by striking the end opposite to the blade with a tool, such as
a hammer or mallet. You have stated that the cutting part of the tool does not contain by weight over 0.2
percent of chromium, molybdenum, or tungsten or over 0.1 percent of vanadium.
The applicable subheading for the chisel will be 8205.30.6000, Harmonized Tariff Schedule of the United
States (HTSUS), which provides for handtools (including glass cutters) not elsewhere specified or included;
blow torches and similar self-contained torches; vises, clamps and the like, other than accessories for and
parts of machine tools or water-jet cutting machines; anvils; portable forges; hand- or pedal-operated
grinding wheels with frameworks; base metal parts thereof: planes, chisels, gouges and similar cutting tools
for working wood, and parts thereof: other (including parts). The general rate of duty will be 5 percent ad
valorem.
In your request you describe the manufacturing process for the chisel. You state that it begin in Thailand,
where raw steel rods are cut to length, drop-forged and die-stamped into a single piece of steel. The steel is
then deburred and formed into the basic shape of the finished chisel. The article is then sent to China, where
it is heat-treated, polished, and the blade is sharpened. A Chinese origin comfort grip is applied over the steel
handle. Sometimes, but not always, a Chinese origin die-cast hammer strike is placed on the end of the
handle. The finished chisel is then retail packaged for shipment 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).
Additionally, 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 CFR 134) implements the
country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP
Regulations (19 CFR 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 our view, a substantial transformation occurs in Vietnam, where steel coil is drop-forged and die-cut into a
chisel blank. This article provides the principal characteristics of the finished chisel, is dedicated for use as
such, and cannot be used for any other purpose. The character of the chisel blank remains unchanged after
the manufacturing processes and addition of the comfort grip in China. Therefore, it is the opinion of our
office that the country of origin of the chisel is Thailand.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading
8205.30.6000, HTSUS, listed above.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS
and the accompanying duty rates are provided at https://hts.usitc.gov/.
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