CLA-2-82:OT:RR:NC:N1:118

Eric Lee
Zhangjiagang Tianhua Hardware Co., Ltd.
XinLe Rd., DaXin Town
Zhangjiagang 215600
China

RE: The tariff classification and country of origin of tin snips and aviation snips

Dear Mr. Lee:

In your letter dated May 19, 2025, you requested a tariff classification and country of origin determination ruling for tin snips and aviation snips. Each tool is made primarily of steel and is used to cut metal. You provided photographs and descriptions of each stage of the manufacturing process for each tool. The features and characteristics of the tools are as follows:

The tin snips consist of two primary pieces, which are the left and right side of the tool. Each piece incorporates a handle with a hand/finger ring on one side and a cutting end on the other. The handles are joined by a pin near the cutting end, which provides a fulcrum, allowing the scissor action of the tool. The subject articles also have a comfort grip applied to the handles.

Aviation snips are compound action snips that have a mechanical linkage that provides a greater advantage than the scissor design of tin snips. Accordingly, they can cut thicker metal than tin snips.

The applicable subheading for the tin snips and aviation snips will be 8203.30.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for files, rasps, pliers (including cutting pliers), pincers, tweezers, metal cutting shears, pipe cutters, bolt cutters, perforating punches and similar handtools, and base metal parts thereof: metal cutting shears and similar tools, and parts thereof. The general rate of duty will be free.

In your request, you describe the following manufacturing processes for the two tools:

Tin snips: In Thailand, raw steel rods are heated and drop-forged to make the two primary pieces of the tool (i.e., the right and left side). Each of these pieces incorporates the handle on one side and the cutting edge on the other. The two pieces are die-cut, sandblasted, and deburred. They are then sent to China where a hole is drilled into each, the finger/hand holes are punched, and the pieces are heat-treated. The right and left sides are assembled using a Chinese origin screw and nut through the hole, and the comfort grip is applied over the handles.

Aviation snips: In Thailand, raw steel rods are heated and drop-forged into the two rough shapes that make up the head of the snips. The head incorporates the cutting part of the tool, the fulcrum, and upper section of the handle. These two pieces are then die-cut into their overall shape and form and further sandblasted. Next, raw steel sheet is die-cut into a flat outline of the two lower handle sections. The disassembled head and handles are then sent to China where they are heat-treated and drilled with holes for assembly with screws and nuts. The lower handles are bent into their final form and the blades on the head are sharpened. They are then assembled using Chinese origin screws and nuts. Finally, the Vietnamese steel handles receive a comfort grip before retail packaging.

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.

Regarding the country of origin of the three tools under consideration, it is our view that raw steel is substantially transformed in Thailand into identifiable blanks of the finished tools. This includes drop-forging and die-cutting steel into the handles and jaws of the tin snips and aviation snips. These articles provide the principal characteristics of the finished tools, are dedicated for use as such, and cannot be used for any other purpose. The character of these articles remains unchanged after the manufacturing processes and assemblies that occur in China. Therefore, it is the opinion of our office that the country of origin of the tin snips and aviation snips 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 8203.30.0000, 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,

(for)
Steven A. Mack
Director
National Commodity Specialist Division