OT:RR:NC:N1:118

Lawrence Friedman
Barnes, Richardson & Colburn, LLP
303 E. Wacker Drive, Ste. 305
Chicago, IL 60601

RE: The country of origin of screwdrivers, a screwdriver set, and a nut driver set

Dear Mr. Friedman:

In your letter dated November 4, 2025, on behalf of your client, Apex Tool Group, you requested a country of origin determination for purposes of Section 301 and IEEPA duties. Pictures of the items in different stages of manufacture were included with your submission, along with narratives of the manufacturing processes.

The items under consideration are screwdrivers, a six piece screwdriver set, and a nut driver set. The screwdrivers include different tips that are shaped to fit specific types of screw heads, such as Phillips, slotted, or Torx. The screwdriver set includes six screwdrivers of various lengths and tips. The nut driver set includes six different sizes of nut drivers that have cylindrical socket heads and a bent circular tail, which enables them to be assembled into a plastic holder.

The manufacturing process for the screwdrivers and the screwdriver set is the same. It begins in Vietnam, where steel bar is forged into the approximate size and shape of the shank and tip of each finished screwdriver. The forging then undergoes CNC processing, including turning, milling, punching, and pressing. These processes create the finished tip of each screwdriver, along with the “wings” on the shank that serve as the mechanical connection point for the handle. These articles are then shipped to China for finishing operations that include heat treatment, plating, assembly with the Chinese-origin plastic handles, and packaging.

The manufacturing process for the nut driver set also begins in Vietnam, where raw steel is cold forged into blanks of each nut driver. The pictures you submitted indicate that these blanks are in the approximate size and shape of the finished articles. The blanks are then sent to China where the ends are bent into a circular tail, which enables them to be assembled into a plastic holder. They are further heat treated, plated and then assembled into the plastic holder with a connector running through the circular tail of each nut driver.

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 screwdrivers, six piece screwdriver set, and nut driver set, it is our view that raw steel is substantially transformed in Vietnam into a recognizable tool blank of each individual tool. In the case of the screwdrivers, this includes creating the finished shaft and tips of each finished screwdriver. The nut drivers have a pre-determined use and are in a dedicated physical form of each finished nut driver when they arrive in China. Based on the submitted information and pictures of these items, 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. Therefore, it is our determination that the country of origin of the screwdrivers, six piece screwdriver set, and nut driver set is 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 (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)
Deborah Marinucci
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division