N355137

N355137 November 18, 2025 CLA-2-84:OT:RR:NC:N1:164 CATEGORY: Classification; Origin; Marking; Trade Agreement TARIFF NO.: 8456.11.1010; 8459.61.0080; 8461.90.3080; 9903.02.56 Won Yong Park Ace Certified Customs Attorneys Corporation 5F, 8, Hakdong-ro 45-gil, Gangnam-gu Seoul 06060 South Korea RE: The tariff classification, country of origin, marking, and eligibility for preferential treatment under the United States-Korea Free Trade Agreement of a laser marking machine, an engraver and cutter machine, and an engraver machine Dear Won Yong Park: In your letter dated October 22, 2025, you requested a ruling on the tariff classification, country of origin, marking, and applicability of the United States-Korea Free Trade Agreement (UKFTA) on behalf of your client, Redt Inc. Product information was submitted with your request. The first item under consideration is a laser marking machine (model MAGIC-L3). It is described as a master oscillator power amplifier (MOPA) fiber laser marking and cutting machine designed to facilitate precise and efficient marking and cutting operations on various jewelry products. Specifically, the laser source provides control over pulse duration and frequency which enables high contrast marking. You state the machine is computer numerically controlled (CNC) with a user-friendly software interface and automation capabilities. Additionally, you posit the machine’s structure and dimensions make it suitable for installation and use in retail shops and workshops. According to your submission, the MAGIC-L3 is primarily used for working metals. The MAGIC-L3 laser marking machine is manufactured in Korea using components from Korea and China. In your letter, you enumerate six distinct manufacturing steps. The process begins with the assembly of the moving/rear cover, the Z-axis guide plate, the rotary slide, and the head into the main components. Next, components including the front plate, the rotary slide, the middle plate, and the Z-axis guide plate are mounted on the base. At that point, the electrical board is installed, wiring from the base is connected, and additional wiring is organized. Then, the moving cover is installed, the machine is set to its home position, and functional testing is performed. Once testing is complete, the rear cover is installed and the label is attached. Finally, the machine undergoes quality inspections, is dressed in protective film, and packaged for shipment. The second item under consideration is a “flat plus ring” engraver and cutter machine (model MAGIC-E7). The machine is described as a desktop engraving and cutting machine designed for both flat and rotary applications in the jewelry industry. Specifically, the machine will be used for engraving and cutting rings, pendants, bracelets, bangles, and similar articles. You state that the machine performs deep engraving and cutting using a rotating spindle equipped with a tool such as an end mill or V-cutter. In addition, the machine is capable of engraving metal surfaces by lightly scratching them with a diamond-tipped tool. You confirmed that the MAGIC-E7 is CNC and principally functions as a milling machine. The MAGIC-E7 engraver and cutter machine is manufactured in Korea using components from Korea and China. There are six discrete manufacturing steps. First, major components such as the head, the A-axis, the vice, and the base plate are individually assembled. Then, the base structure is built by mounting plates and securing the head and the X-axis components. At that point the electrical board and wiring are connected and organized. Next, the machine undergoes home position setup, marking, cutting, and A-axis performance tests. After that, protective covers and labels are installed on the machine. Finally, a quality inspection is conducted, the machine is dressed in protective film, and it is packaged for shipment. The third item under consideration is a “flat plus ring” engraver machine (model MAGIC-S7). The MAGIC-S7 is described as a desktop engraving machine used for jewelry such as rings, pendants, bangles, bracelets, and similar products. You state the machine is equipped with flat and rotary clamps, and it includes an integrated camera and laser to precisely locate and adjust designs on a workpiece. Furthermore, you state that it features an enhanced motor system to deliver enhanced engraving quality with reduced noise. In communications with this office, you clarified that the MAGIC-S7 is CNC and will be primarily used for engraving with a diamond-tipped tool that scratches the surface of a metal workpiece. The MAGIC-S7 engraver machine is manufactured in Korea using components from Korea and China. You list six distinct manufacturing steps. The process begins with the assembly of the head, the A-axis, the vice, and the base plate into the main component structure. After that, the left and right plates are mounted onto the base plate, the head is installed using the grinding rod, and the X-axis belt is secured. Then, the electrical board is installed, wiring from the base plate is connected, and all additional wiring is organized. Following that, the machine is set to its home position and undergoes marking and A-axis testing. At that point, the rear, the side, and the head covers are installed, and the label is attached. Following that, the machine undergoes a final quality inspection, is dressed in protective film, and packaged for shipment. In all cases, you claim the manufacturing processes require skilled labor with advanced technical expertise. You state that the processes include tasks such as power and mainboard assembly, three-axis (X, Y, Z) and head installation, connection work, camera function setup, laser guide pointer installation, and hardware switch assembly. You clarify that precise wiring is required at each step. As described, all processes are performed manually over a period of three to five days without the assistance of automation technology. Classification The applicable subheading for the MAGIC-L3 laser marking machine will be 8456.11.1010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machine tools for working any material by removal of material, by laser or other light or photon beam, ultrasonic, electro-discharge, electro-chemical, electron-beam, ionic-beam or plasma arc processes; water-jet cutting machines: Operated by laser or other light or photon beam processes: Operated by laser: For working metal: Numerically controlled.” The general rate of duty will be 3.5 percent ad valorem. Although stated in your correspondence that the MAGIC-E7 and MAGIC-S7 are designed to process metal, wax, and plastic plate materials, the contextual totality of your submission establishes that the MAGIC-E7 and MAGIC-S7 are principally for working metal articles of jewelry. The applicable subheading for the MAGIC-E7 engraver and cutter machine will be 8459.61.0080, HTSUS, which provides for “Machine tools (including way-type unit head machines) for drilling, boring, milling, threading or tapping by removing metal, other than lathes (including turning centers) of heading 8458: Other milling machines: Numerically controlled: Other.” The general rate of duty will be 4.2 percent ad valorem. The applicable subheading for the MAGIC-S7 engraver machine will be 8461.90.3080, HTSUS, which provides for “Machine tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off and other machine tools working by removing metal or cermets, not elsewhere specified or included: Other: Numerically controlled: Other: Other.” The general rate of duty will be 4.4 percent ad valorem. Country of Origin and Marking 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. T

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). Additionally, 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 s