OT:RR:NC:N1:118
Martin Schaefermeier
Cassidy Levy Kent (USA) LLP
2112 Pennsylvania Ave. NW, Suite 300
Washington, DC 20037
RE: The country of origin of a cutting chisel
Dear Mr. Schaefermeier:
In your letter dated December 2, 2025, on behalf of Betek GmbH & Co. KG, you requested a country of
origin determination for purposes of Section 301 duties and IEEPA tariffs. Pictures and descriptions of the
manufacturing processes were included in your submission.
The merchandise under consideration is identified as a cutting chisel. The imported tool is primarily
comprised of five components: the steel body, a tungsten carbide tip, brazing, a clamping sleeve and a wear
plate. The chisel is an essential part of a cold milling machine used for surface treatments of roads with the
purpose of removing asphalt layers while allowing for the reuse of the milled material. The chisel is the part
of the machine that penetrates and cuts the material layer by layer from the road surface. Multiple chisels are
used on one cold milling machine. In operation, each chisel is mounted into individual holders that are
welded onto the rotating milling drum of the machine. The chisels can be ejected and replaced when needed.
You have stated that manufacturing process for the chisel will occur in Germany using parts and components
from local German partners, sourcing only the tungsten carbide tip from China. The manufacturing process
begins with cold forging steel in Germany into the raw steel body and machining it to exact technical
specifications. Specifically, the base of the body is machined to fit precisely into the holder on the cold
milling machine. In addition, a hole is precision-drilled in the top of the steel body to accommodate the
carbide tip.
The remaining steps of the production of the finished chisel are also performed in Germany. The tungsten
carbide must be sandblasted in preparation for the brazing process. The chisel body is also sandblasted and
then washed to remove oil residue and rust protection that was applied for transport. After sandblasting and
washing, the machined steel body is ready for brazing. It is loaded into the brazing machine, together with
brazing and soldering material. The tungsten carbide tip is then placed on the forged seat of the steel body,
and both are brazed together using a specialized mixture, all of which originate from Germany or another EU
member country. Subsequently, the chisel is again sandblasted to remove any scaling that may have built up
from the brazing process. The wear plate and clamping sleeve, which are also made in Germany, are then
affixed to the steel body. The finished chisel is then reviewed for quality control, packaged, and shipped to
the United States.
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).
Our office notes that in the case of the cutting chisel, the tool is primarily comprised of five components: the
steel body, a tungsten carbide tip, brazing, a clamping sleeve and a wear plate. Apart from the tungsten
carbide tip, all these components are manufactured in Germany. The sum of the complex operations
performed in Germany results in the permanent combination of a first rough-forged and then
precision-machined steel body and a carbide tip into a precision-made finished cutting chisel through
machining, brazing, and heat treatment (in addition to other steps). These processes result in a product, i.e.
the finished cutting chisel, having a new name, character, and use different from that of the imported carbide
tip. It is therefore the opinion of our office that a substantial transformation occurs in Germany and
consequently the country of origin for the finished cutting chisel is Germany.
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)
Evan Conceicao
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division