N353882

N353882 September 25, 2025 CLA-2-84:OT:RR:NC:N1:164 CATEGORY: Classification; Origin; Marking TARIFF NO.: 8466.10.0175; 9903.01.24; 9903.01.25; 9903.02.69; 9903.88.01 Vincent Liu Olympia Tools International Inc. 929 N Grand Ave. Covina, CA 91724 RE: The classification and country of origin of a tool set Dear Mr. Liu: In your letter dated September 18, 2025, you requested a classification and country of origin ruling on a 90-piece tool set. Product information was submitted with your request. The item under consideration is described as a 90-piece tool set packaged in a molded plastic storage case for retail sale. You state the set will be imported fully assembled with no additional processing after importation. The set consists of: 1 - 3/8-inch drive ratchet handle 1 - Ratchet screwdriver 1 - 6-inch lineman’s pliers 1 - 6-inch long nose pliers 1 - 6-inch slip-joint pliers 1 - 6-inch diagonal pliers 1 - 8-ounce fiberglass claw hammer 1 - Phillips #1 screwdriver 2 - Slotted screwdriver 8 - Metrix hex keys 8 - SAE hex keys 1 - 1/4-inch male to 3/4-inch female socket adapter 6 - 2-inch spring clamps 2 - 4-inch spring clamps 18 - 1/4-inch drive sockets 2 - 3/8-inch drive sockets 30 - Driver bits 3 - Bit holders 1 - 6-inch torpedo level 1 - 16-foot tape measure 1 - Plastic storage case In your request, you propose two origin scenarios. In Scenario A, the 3/8-inch drive ratchet handle and the ratchet screwdriver will be manufactured in Vietnam, and the remaining components manufactured in China. In Scenario B, the 3/8-inch drive ratchet handle will be manufactured in Vietnam, and the remaining components will be manufactured in China. In both scenarios, the components will be consolidated and packaged for retail sale in China. Classification Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1, HTSUS, states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3. The instant tool sets consist of at least two different articles that are, prima facie, classifiable in different headings. They consist of articles put up together to carry out a specific activity (i.e., maintenance and repair). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the set in question is within the term “goods put up in sets for retail sale.” GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component which gives them their essential character. Inasmuch as no essential character can be determined, GRI 3(b) does not apply. GRI 3(c) states that, if neither GRI 3(a) nor GRI 3(b) applies, merchandise shall be classified in the heading which occurs last in numerical order among those equally meriting consideration. In this instance, the items equally meriting consideration are the ratchet handle, ratchet screwdriver, pliers, screwdrivers, hammer, hex keys, bits, sockets, and adapter. The ratchet handle and ratchet screwdriver are classified in the heading which occurs last in numerical order among those meriting equal consideration (8466). The appliable subheading for the 90-piece tool set will be 8466.10.0175, HTSUS, which provides for Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465…; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads: Other. The general rate of duty will be 3.9 percent ad valorem. 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 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. ratchet handle and ratchet screwdriver) impart the essential character per GRI 3 and thus control the of origin of the set. In Scenario A, both the ratchet handle and the ratchet screwdriver originate in Vietnam. Accordingly, the country of origin in Scenario A is Vietnam. In Scenario B, the ratchet handle originates in Vietnam, and the ratchet screwdriver originates in China. Between these tool holders, we determined the ratchet screwdriver imparts the essential character of the set because it is used with a large quantity of bits (30). By comparison, the ratchet handle is used with fewer items (20 sockets and 1 adapter). As a result, the overall utility of the tool set is dependent more so on the ratchet screwdriver than the ratchet handle. Consequently, the country of origin in Scenario B is China. 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. 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. A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by th

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 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. ratchet handle and ratchet screwdriver) impart the essential character per GRI 3 and thus control the of origin of the set. In Scenario A, both the ratchet handle and the ratchet screwdriver originate in Vietnam. Accordingly, the country of origin in Scenario A is Vietnam. In Scenario B, the ratchet handle originates in Vietnam, and the ratchet screwdriver originates in China. Between these tool holders, we determined the ratchet screwdriver imparts the essential character of the set because it is used with a large quantity of bits (30). By comparison, the ratchet handle is used with fewer items (20 sockets and 1 adapter). As a result, the