CLA-2-84:OT:RR:NC:N1:164
Won Yong Park
Ace Certified Customs Attorneys Corporation
5F, 8, Hakdong-ro 45-gil, Gangnam-gu
Seoul 06060
South Korea
RE: The tariff classification, country of origin, marking, and eligibility for preferential treatment under the
United States-Korea Free Trade Agreement of a laser marking machine, an engraver and cutter machine, and
an engraver machine
Dear Won Yong Park:
In your letter dated October 22, 2025, you requested a ruling on the tariff classification, country of origin,
marking, and applicability of the United States-Korea Free Trade Agreement (UKFTA) on behalf of your
client, Redt Inc. Product information was submitted with your request.
The first item under consideration is a laser marking machine (model MAGIC-L3). It is described as a master
oscillator power amplifier (MOPA) fiber laser marking and cutting machine designed to facilitate precise and
efficient marking and cutting operations on various jewelry products. Specifically, the laser source provides
control over pulse duration and frequency which enables high contrast marking. You state the machine is
computer numerically controlled (CNC) with a user-friendly software interface and automation capabilities.
Additionally, you posit the machine’s structure and dimensions make it suitable for installation and use in
retail shops and workshops. According to your submission, the MAGIC-L3 is primarily used for working
metals.
The MAGIC-L3 laser marking machine is manufactured in Korea using components from Korea and China.
In your letter, you enumerate six distinct manufacturing steps. The process begins with the assembly of the
moving/rear cover, the Z-axis guide plate, the rotary slide, and the head into the main components. Next,
components including the front plate, the rotary slide, the middle plate, and the Z-axis guide plate are
mounted on the base. At that point, the electrical board is installed, wiring from the base is connected, and
additional wiring is organized. Then, the moving cover is installed, the machine is set to its home position,
and functional testing is performed. Once testing is complete, the rear cover is installed and the label is
attached. Finally, the machine undergoes quality inspections, is dressed in protective film, and packaged for
shipment.
The second item under consideration is a “flat plus ring” engraver and cutter machine (model MAGIC-E7).
The machine is described as a desktop engraving and cutting machine designed for both flat and rotary
applications in the jewelry industry. Specifically, the machine will be used for engraving and cutting rings,
pendants, bracelets, bangles, and similar articles. You state that the machine performs deep engraving and
cutting using a rotating spindle equipped with a tool such as an end mill or V-cutter. In addition, the machine
is capable of engraving metal surfaces by lightly scratching them with a diamond-tipped tool. You confirmed
that the MAGIC-E7 is CNC and principally functions as a milling machine.
The MAGIC-E7 engraver and cutter machine is manufactured in Korea using components from Korea and
China. There are six discrete manufacturing steps. First, major components such as the head, the A-axis, the
vice, and the base plate are individually assembled. Then, the base structure is built by mounting plates and
securing the head and the X-axis components. At that point the electrical board and wiring are connected and
organized. Next, the machine undergoes home position setup, marking, cutting, and A-axis performance tests.
After that, protective covers and labels are installed on the machine. Finally, a quality inspection is
conducted, the machine is dressed in protective film, and it is packaged for shipment.
The third item under consideration is a “flat plus ring” engraver machine (model MAGIC-S7). The
MAGIC-S7 is described as a desktop engraving machine used for jewelry such as rings, pendants, bangles,
bracelets, and similar products. You state the machine is equipped with flat and rotary clamps, and it includes
an integrated camera and laser to precisely locate and adjust designs on a workpiece. Furthermore, you state
that it features an enhanced motor system to deliver enhanced engraving quality with reduced noise. In
communications with this office, you clarified that the MAGIC-S7 is CNC and will be primarily used for
engraving with a diamond-tipped tool that scratches the surface of a metal workpiece.
The MAGIC-S7 engraver machine is manufactured in Korea using components from Korea and China. You
list six distinct manufacturing steps. The process begins with the assembly of the head, the A-axis, the vice,
and the base plate into the main component structure. After that, the left and right plates are mounted onto the
base plate, the head is installed using the grinding rod, and the X-axis belt is secured. Then, the electrical
board is installed, wiring from the base plate is connected, and all additional wiring is organized. Following
that, the machine is set to its home position and undergoes marking and A-axis testing. At that point, the rear,
the side, and the head covers are installed, and the label is attached. Following that, the machine undergoes a
final quality inspection, is dressed in protective film, and packaged for shipment.
In all cases, you claim the manufacturing processes require skilled labor with advanced technical expertise.
You state that the processes include tasks such as power and mainboard assembly, three-axis (X, Y, Z) and
head installation, connection work, camera function setup, laser guide pointer installation, and hardware
switch assembly. You clarify that precise wiring is required at each step. As described, all processes are
performed manually over a period of three to five days without the assistance of automation technology.
Classification
The applicable subheading for the MAGIC-L3 laser marking machine will be 8456.11.1010, Harmonized
Tariff Schedule of the United States (HTSUS), which provides for “Machine tools for working any material
by removal of material, by laser or other light or photon beam, ultrasonic, electro-discharge,
electro-chemical, electron-beam, ionic-beam or plasma arc processes; water-jet cutting machines: Operated
by laser or other light or photon beam processes: Operated by laser: For working metal: Numerically
controlled.” The general rate of duty will be 3.5 percent ad valorem.
Although stated in your correspondence that the MAGIC-E7 and MAGIC-S7 are designed to process metal,
wax, and plastic plate materials, the contextual totality of your submission establishes that the MAGIC-E7
and MAGIC-S7 are principally for working metal articles of jewelry.
The applicable subheading for the MAGIC-E7 engraver and cutter machine will be 8459.61.0080, HTSUS,
which provides for “Machine tools (including way-type unit head machines) for drilling, boring, milling,
threading or tapping by removing metal, other than lathes (including turning centers) of heading 8458: Other
milling machines: Numerically controlled: Other.” The general rate of duty will be 4.2 percent ad valorem.
The applicable subheading for the MAGIC-S7 engraver machine will be 8461.90.3080, HTSUS, which
provides for “Machine tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear
finishing, sawing, cutting-off and other machine tools working by removing metal or cermets, not elsewhere
specified or included: Other: Numerically controlled: Other: Other.” The general rate of duty will be 4.4
percent ad valorem.
Country of Origin and Marking
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional 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 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 scenarios, the finished, functional machines are manufactured in Korea from components
originating in Korea and China. In each case, the individual components emerge from manufacturing with a
new name, character, and use different from those possessed prior to manufacturing processes in Korea. Prior
to the processes in Korea, the components do not have the structural or functional capacity to operate as laser,
engraving, or cutting machines. During manufacturing, each component loses its individual identity and
becomes a component of a machine. Based on the submitted information, the manufacturing processes
require specialized technical expertise to properly construct, wire, and calibrate the machines. Accordingly,
the country of origin for the MAGIC-L3 laser marking machine, the MAGIC-E7 engraver and cutter
machine, and the MAGIC-S7 engraver machine will be Korea.
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 of South Korea will
be subject to an additional ad valorem rate of duty of 15 percent. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.02.56, in addition to subheadings
8456.11.1010, 8459.61.0080, and 8461.90.3080, HTSUS, listed above.
United States-Korea Free Trade Agreement (UKFTA)
General Note 33, HTSUS, sets forth the criteria for determining whether a good is originating under the
UKFTA. General Note 33(b), HTSUS, states, in pertinent part, as follows:
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good
imported into the customs territory of the United States is eligible for treatment as an originating good of a
UKFTA country under the terms of this note if–
(i) the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both;
(ii) the good is produced entirely in the territory of Korea or of the United States, or both, and-- (A) each of
the non-originating materials used in the production of the good undergoes an applicable change in tariff
classification specified in subdivision (o) of this note; or (B) the good otherwise satisfies any applicable
regional value-content or other requirements set forth in such subdivision (o); and satisfies all other
applicable requirements of this note and of applicable regulations; or
(iii) the good is produced entirely in the territory of Korea or of the United States, or both, exclusively from
materials described in subdivisions (i) or (ii), above.
For the purposes of this note, the term “UKFTA country” refers only to Korea or to the United States.
Since the subject machines contain non-originating components from China, they would not be considered a
good wholly obtained or produced entirely in a UKFTA country under GN 33(b)(i). Thus, we must determine
whether the product qualifies under GN 33(b)(ii).
As previously noted, the MAGIC-L3 laser marking machine is classified in subheading 8456.11.1010,
HTSUS. GN 33(o), Chapter 84, Rule 84 permits: “A change to heading 8456 from any other heading,
provided that there is a regional value content of not less than 60 percent under the build-down method.”
Based on the provided bill of materials and supporting information, the tariff shift requirement is met.
Provided the regional value content requirement is met, the MAGIC-L3 laser marking machine will be
eligible for preferential tariff treatment under the UKFTA.
The MAGIC-E7 engraver and cutter machine is classified in subheading 8459.61.0080, HTSUS. GN 33(o),
Chapter 84, Rule 85 permits: “A change to headings 8457 through 8461 from any other heading, provided
that there is a regional value content of not less than 55 percent under the build-down method.” Based on the
provided bill of materials and supporting information, the tariff shift requirement is met. Provided the
regional value content requirement is met, the MAGIC-E7 engraver and cutter machine will be eligible for
preferential tariff treatment under the UKFTA.
The MAGIC-S7 engraver machine is classified in subheading 8461.90.3080, HTSUS. GN 33(o), Chapter 84,
Rule 85 permits: “A change to headings 8457 through 8461 from any other heading, provided that there is a
regional value content of not less than 55 percent under the build-down method.” Based on the provided bill
of materials and supporting information, the tariff shift requirement is met. Provided the regional value
content requirement is met, the MAGIC-S7 engraver machine will be eligible for preferential tariff treatment
under the UKFTA.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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
(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,
(for)
Deborah Marinucci
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division