N333023

N333023 June 12, 2023 CLA-2-96:OT:RR:NC:N4:415 CATEGORY: Country of Origin Robert L. Merry B Merry Studio, Inc. 5603 Dorbrandt Street Anchorage, AK 99518 RE: The country of origin of assorted tourist gift items. Dear Mr. Merry: In your letter dated May 22, 2023, you requested a country of origin ruling. Images of the subject articles were provided in lieu of samples. There are five product categories under consideration. Your submission indicates these items will be almost entirely sold within the state of Alaska. The first consists of fixed and folding blade knives. In the United States, the handle pieces are machined to shape and drilled for rivets from indigenous materials, such as antler, fossil bone, etc., and shipped, along with United States-sourced blades, screws, and rivets, to the Philippines. While in the Philippines, the pre-cut handle pieces are bonded to the United States-sourced blade with adhesives and rivets, and then shaped and polished. The nearly finished knives are returned to the United States, where they receive remedial edge grinding and a final polish. The second are caribou antler “shovel” carvings. In the United States, the antler shovels are cut from the antler. One end will be carved into a partially finished eagle head and the shovel surface is lightly carved to define the panorama area, adorned with a sketch of the panorama art, and roughed out into a preliminary carving before being shipped to the Philippines. The shovel will be detail-carved while in the Philippines. It will then be returned to the United States where finishing touches are applied to the panorama carving, taxidermy-grade eyes are installed into the eagle head carving, and the antler is stained and clear-sealed. A wall hanging bracket or a full antler base is then attached, and the carving is ready for market. The third are shaped Ulu knife handles. In the United States, various materials such as United States-manufactured plasticized wood and natural moose and caribou antler are computer numerical control (CNC) carved to shape, to include adding small slots specifically designed to receive the tangs of an Ulu knife blade, prior to being shipped to the Philippines. The ulu blades are not shipped to the Philippines. While in the Philippines, the handles are further detail-carved and otherwise prepared. Upon return to the United States, the finishing touches are applied to the carving, including taxidermy grade eyes on the bear and eagle head handles. United States-sourced Ulu blades are installed and bonded into the handles, and they are then packaged and made ready for market. The fourth are carved antler utility item handles. In the United States, natural moose antler is cut to specific length and CNC, or manually, carved to rough form before being shipped to the Philippines. These pre-shaped utility handles are also drilled and tapped specifically to receive the tangs of a corkscrew, bottle stopper, or letter opener. The metal utility components are not shipped to the Philippines. While in the Philippines, the handles are further detail-carved and otherwise prepared. Upon return to the United States, the finishing touches are applied to the carving and the metal components are installed, and they are then packaged to prepare them for market. The fifth are ornamental carvings. In the United States, natural moose antler is cut to specific length and CNC, or manually, carved to rough form before being shipped to the Philippines. While in the Philippines, the small figurines and larger carvings are further detail-carved and otherwise prepared. The pieces are shipped back to the United States for touch-up carving, sealing, and decorative mounting. Pursuant to Part 134, Customs Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 USC 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as: “[t]he 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 this part.” A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). To determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation. From the information submitted, we do not find that any of these products are substantially transformed in the Philippines as they only undergo minor processing, and already have the basic identity of the returned product when they leave the United States. As such, we hold the opinion that the country of origin for these articles will all be the United States. Whether an article may be marked with the phrase "Made in the USA" or similar words denoting United States origin is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, NW, Washington, D.C. 20508, as to whether the proposed markings satisfy their requirements. This merchandise may be subject to restrictions and/or requirements administered by the U.S. Fish and Wildlife Service, Office of Law Enforcement (Telephone: 703-358-1949, Fax: 703-358-2271, E-mail: lawenforcement@fws.gov). We strongly suggest that you contact that office before you attempt to import these goods. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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, contact National Import Specialist Kristopher Burton at kristopher.burton@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division