OT:RR:NC:N1:164
Vincent Liu
Olympia Tools International Inc.
929 N. Grand Ave.
Covina, CA 91724
RE: The country of origin and marking of a tool set
Dear Mr. Liu:
In your letter dated May 29, 2026, you requested a ruling regarding the country of origin and marking of a
302-piece tool set. Product information was submitted with your request.
The item under consideration is described as a 302-piece mechanics tool set (Item No. 140-189) packaged in
a molded plastic storage case for retail sale. You state the set will be imported fully assembled with no
additional processing required. The set consists of:
10 - Metric 1/4" Drive Standard Sockets
10 - Metric 1/4" Drive Deep Sockets
10 - Metric 3/8" Drive 6-Point Sockets
10 - Metric 3/8" Drive Deep Sockets
10 - Metric 1/2" Drive 12-Point Bolt Sockets
10 - Metric 1/2" Drive Deep Sockets
10 - SAE 1/4" Drive Standard Sockets
10 - SAE 1/4" Drive Deep Sockets
10 - SAE 3/8" Drive 6-Point Sockets
10 - SAE 3/8" Drive Deep Sockets
10 - 1/2" 12-Point Bolt Sockets
10 - 1/2" Drive Deep Sockets
3 - 90-Tooth Ergonomic Ratchet Handles
4 - Socket Adapters
3 - Swivel Adapters
2 - 3/8" Spark Plug Sockets
1 - 1/2" Spark Plug Socket
1 - Magnet Retrieval Tool
10 - SAE Combination Wrenches
10 - Metric Combination Wrenches
10 - Metric Hex Keys
10 - SAE Hex Keys
1 - Magnetic Screwdriver Bit Driver
8 - 1/4" Drive Torx Sockets
2 - 3/8" Drive Torx Sockets
4 - 1/4" Metric Hex Sockets
4 - 3/8" Metric Hex Sockets
4 - 1/4" Driver SAE Hex Sockets
4 - 3/8" Driver SAE Hex Sockets
8 - Metric Nut Drivers
8 - SAE Nut Drivers
1 - 3/8" Drive 1.5" Socket Extension
1 - 1/4" Drive 2" Socket Extension
1 - 3/8" Drive 3" Socket Extension
1 - 1/2" Drive 3" Socket Extension
1 - 1/4" Drive 4" Socket Extension
1 - 3/8" Drive 6" Socket Extension
1 - 1/2" Drive 6" Socket Extension
3 - 6" Wobble Socket Extensions
75 - Driver Bits
In your request, you present two origin scenarios. In Scenario 1, the three ergonomic ratchet handles are
manufactured in Vietnam, and all other components are manufactured in China. In Scenario 2, the three
ergonomic ratchet handles and the twenty combination wrenches are manufactured in Vietnam, and all other
components are manufactured in China. In both scenarios, the components will be consolidated and packaged
in China for retail sale.
Country of Origin
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).
According to the CBP website under Section 301 Trade Remedies Frequently Asked Questions, “When
importing goods put up in sets for retail sale (in accordance with General Rule of Interpretation 3) that
contain articles subject to the Section 301 remedy, if the product that imparts the essential character to the set
(i.e., the Harmonized Tariff Schedule of the United States (HTSUS) provision under which the entire set is
classified) is covered by the Section 301 remedy, then the entire set will be subject to the additional 25
percent duties. If the HTSUS provision under which the entire set is classified is not covered by the Section
301 remedies, but the set contains components that are classified in a subheading covered by the 301 list, the
301 duties will not be assessed on the individual components.”
In this case, the tool holders (e.g., ergonomic ratchet handles, socket adapters, socket extensions, magnetic
screwdriver bit driver) impart the essential character of the set and thus control origin. Amongst the tool
holders, we determined that the ergonomic ratchet handles ultimately impart the set’s essential character
because they are necessary to hold and drive a large quantity of adapters, extensions, and sockets (166).
Without the ergonomic ratchet handles, the functional utility of the set’s remaining components would be
drastically hindered. In either scenario, the ergonomic ratchet handles are manufactured in Vietnam, and the
other tool holders are manufactured in China. Accordingly, the country of origin in both scenarios is
Vietnam.
Marking
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. Friedlaender & 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.
You propose that the external packaging will be marked as “Made in Vietnam,” and each item’s country of
origin will also be clearly indicated on the item or packaging. The ultimate purchaser must be able to clearly
identify the country of origin of each item in the set. Therefore, the origin of each item in the set must be
clearly identified on the plastic storage case or the external packaging. Any references to the country where
packaging occurred must be preceded by the country of origin markings.
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)
James P. Forkan
Director
National Commodity Specialist Division