OT:RR:NC:N1:118

Fay Jin
GreatStar Industrial USA, LLC
9836 Northcross Center Court, Suite A
Huntersville, NC 28078

RE: The country of origin of a tap, die and spiral screw extractor

Dear Ms. Jin:

In your letter dated July 21, 2025, you requested a country of origin determination for purposes of Section 301 and IEEPA duties. Pictures of the merchandise in different stages of manufacture were included with your submission, along with a narrative of the manufacturing processes.

The three steel tools under consideration are a tap, die and spiral screw extractor. Taps are used to cut internal threads within a hole in a workpiece, while dies are used to cut external threads on screws, bolts, rods, or studs. Tap wrenches and die stocks hold the tap or die while in use. A spiral screw extractor is a specialized tool designed to remove broken, stripped or stuck screws and bolts. Typically, a power drill is used to hold and turn the extractor while in use.

The manufacturing process for the tap begins in Thailand, where steel rods are cut to the overall size and shape of the tap. The outer threads are rolled onto the tap, and the shank and drive of the tool are ground. The tap is then sent to China, where the chamfered end is formed and, in some instances, flutes or grooves are ground into the threads.

The manufacturing process for the die begins in Thailand, where steel rods are cut and chamfered into the outer shape and size of the die. The die is then put through a multi-station milling machine where the center of the die is cut out and the internal threads are milled. After this process, the die is sent to China for deburring, further chamfering, heat-treatment, sandblasting, and laser etching.

The manufacturing process for the spiral screw extractor begins in Thailand, where steel rods are cut into the length of the tool. The shank and dive are ground and threads are rolled onto the extractor before it is sent to China. In China, the extractor is heat-treated, sandblasted and a logo is laser etched onto it.

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 tap and die, it is our view that steel rod is substantially transformed in Thailand into recognizable tool blanks in each of your manufacturing scenarios. Based on the submitted information and pictures of the tools, it is our opinion that no article emerges from the finishing operations in China with a new name, character, or use different from that prior to processing. Although not ready for direct use, the tool blanks that arrive in China have a pre-determined use and are in a dedicated physical form of a die and tap. Therefore, it is our determination that the country of origin of the tap and die is Thailand.

In regard to the spiral screw extractor, we find that steel is substantially transformed in Thailand into a fully formed spiral screw extractor. It is not substantially changed by heat-treatment, sandblasting or having a logo laser etched into it. Therefore, it is our determination that the country of origin of the spiral screw extractor is Thailand.

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)
James Forkan
Acting Director
National Commodity Specialist Division