H310562

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H310562 January 6, 2021 OT:RR:CTF:FTM H310562 JER CATEGORY: Origin Ms. Deborah B. Stern Sandler, Travis & Rosenberg, P.A. 1000 NW 57th Court, Suite 600 Miami, FL 33126 RE: Country of Origin of Knives, Peelers and Slicers Dear Ms. Stern: This is in response to your correspondence, dated February 10, 2020, filed on behalf of your client, Kyocera International, Inc. (“Kyocera”), requesting a prospective ruling pursuant to 19 C.F.R. § 177(a)(1), regarding the country of origin of knives, peelers and slicers. Your request was forwarded to this office by the National Commodity Specialist Division for review. Our ruling is set forth below. FACTS: The products at issue are described as Part No. FK-140 (Ceramic Santoku Knife or “knife”); Part No. CP-10N (Ceramic Peeler or “peeler”); and Part No. CSN-202 (Adjustable Ceramic Slicer or “slicer”) (or collectively referred to as “cutting devices”). In your submission, you provide the following description of the subject merchandise and the manufacturing processes: KNIFE The subject knife measures approximately 9.84 inches long, and features a blade made of ceramic, which is 5.5 inches long. The ceramic knife is used to cut and/or slice fruits, vegetables, and boneless meats. To begin manufacturing, first the ceramic blade blank is produced in Japan. The blade blank looks like a knife blade when it leaves Japan and is capable of cutting in the blade blank form. When the Japanese blade blank is received in China, the blade blank is sharpened, but the teeth are not cut into the ceramic blade; it is merely grinded in China to a size-down. The grinding only takes one minute to complete. Next, the handle is injection molded on the end of the blade; this [process] does not involve any gluing or screwing of any kind. The knife is then packaged for export to the United States. PEELER The subject peeler measures approximately 5.25 inches in length. It features a blade made of ceramic that is partially encased in plastic (referred to as the “rim”) for the user’s buffer and protection and is precisely positioned into the body of the plastic handle. The peeler is pulled in a linear motion on top of the food item it is intended to peel. It can be used on fruits, vegetables, or other items in which only layers of the item need to be peeled away. To begin manufacturing, the blade blank is produced in Japan. Next, the blade is received in China where it is sharpened and grinded down to size. Again, no teeth are grinded into the blade - it is merely sharpened and edged. Next, the blade is inserted into the plastic rim, which is manufactured in China. The blade is affixed to the handle by a ultrasonic welding process. The rim with the blade is then attached to the plastic handle. All of the plastic component parts are made in China. The product is packaged ready for export to the United States. MANDOLINE SLICER The subject [mandoline] slicer measures approximately 10 inches in length. It features a blade made of ceramic that is positioned diagonally across the plastic handle component. The plastic paddle/handle allows the user to carefully push the blade against the food item it is intended to slice, but the plastic component does not slice the food item whatsoever; it is simply a handle to allow easy functioning and control to the user while slicing. The slicer can be used to slice vegetable and is ideal for cabbage, carrots, cucumbers, onions, and potatoes. To begin manufacturing, the blade blank is produced in Japan. Next, the blade is received in China and grinded down to size. Again, no teeth are grinded into the blade - it is merely sharpened/edged. Next, the blade is inserted into the plastic paddle/handle from China. The blade is affixed to the paddle by an ultrasonic welding process. All of the plastic component parts are made in China. The product is then packaged ready for export to the United States. In response to our February 25, 2020 request for additional information, you submitted supplemental information regarding the three blades at issue. Your submission states that the ceramic for each of the three blanks is not glazed. The ceramic used in the subject knives, peelers, and slicers is porcelain, having a fired white body, which will not absorb more than 0.5 percent of its weight of water and is translucent in thicknesses of several millimeters. You further state that the sharpening/grinding process that takes place in China is not required for the blanks to be able to cut/peel/slice, but the sharpening/grinding enhances the blade’s cutting, peeling, or slicing function. Thus, the sharpening of the blades in China makes the blade sharper and therefore makes cutting, peeling, or slicing easier and more precise for a user. In a supplemental submission received June 4, 2020, you provided information pertaining to the manufacturing process and construction of the handles for both the peeler and slicer. You state that plastic materials are shipped to China, where they undergo injection molding to define their shape. Injection molding is an automated machine process that does not require any technical skills or training. Next, in order to set the ceramic blade into the plastic rim of the peeler or to set the ceramic blade into the plastic body/handle of the slicer, the components undergoes a welding process. Welding applies pressure and ultrasonic vibration to the plastic rim or plastic body/handle, which instantly melts it onto the ceramic blade. You further state that the particular shape and construction of the peeler and slicer form, enhances the peeling and slicing function of the ceramic blade. More specifically, the slicer is shaped like a paddle with grooves for thin slicing as the user can glide the food on the body of the slicer until the food touches the ceramic blade. The peeler is shaped like a sling-shot (or a “Y-shape”) so that the ceramic blade is suspended while it is pulled down against the food while the skin is peeled off. On November 2, 2020, CBP held a meeting with counsel for Kyocera to discuss the classification of the subject merchandise. During that meeting, counsel on behalf of Kyocera, provided a supplemental submission which asserted that the peelers and slicers are not substantially transformed by the operations which take place in China but instead form the essence of the finished product. ISSUE: What is the country of origin of the finished knife, peeler and slicer? LAW AND ANALYSIS: The marking statute, section 304, 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 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.” United States v. Friedlaender & Co. Inc., 27 CCPA 297, 302, C.A.D. 104 (1940). Part 134, Customs Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. § 1304. Section 134.1(b), Customs 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 

The marking statute, section 304, 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 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.” United States v. Friedlaender & Co. Inc., 27 CCPA 297, 302, C.A.D. 104 (1940).Part 134, Customs Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. § 1304. Section 134.1(b), Customs 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 an article loses its identity and a new and different article emerges from the processing having a distinctive name, character or use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at 270 (1940) (the Court held that imported wood brush block and toothbrush handles which had bristles inserted into them in the United States lost their identity as such and became new articles having a new name, character and use). In