The country of origin of a cutting chisel

N351631
July 30, 2025
OT:RR:NC:N1:118
CATEGORY: Origin Martin Schaefermeier Cassidy Levy Kent (USA) LLP 2112 Pennsylvania Ave. NW, Suite 300 Washington, DC 20037 RE: The country of origin of a cutting chisel Dear Mr. Schaefermeier: In your letter dated July 23, 2025, on behalf of Betek GmbH & Co. KG, you requested a country of origin determination for purposes of Section 301 duties, IEEPA tariffs and marking. Pictures and descriptions of the manufacturing process were included in your submission. The merchandise under consideration is identified as a chisel. The imported tool incorporates two parts: a cold forged steel body and a carbide tip. The chisel is used in underground coal mines on large continuous miner machines. It is the part of the machine that penetrates and cuts pieces of coal out of rock. Multiple chisels are used on one miner machine. In operation, each chisel is mounted into individual holders that are welded onto the drum of the continuous miner machine. Neither the steel body nor the carbide tip are reusable, and that once worn out they will be used as scrap. You have stated that final manufacturing of the chisel will occur in Germany using parts and components from one or more countries in the European Union (EU) and a Chinese-origin carbide tip. The manufacturing process for the chisel begins in Italy, where the rough steel body is cold forged. It is then sent to Germany, where the steel body is machined to exact technical specification. Specifically, the base of the body is machined to fit precisely into the holder on the continuous miner machine. In addition, a hole is precision-drilled in the top of the steel body to accommodate the carbide tip. The remaining steps of the production of the finished chisel are also performed in Germany. This includes sandblasting the steel body and the Chinese-origin carbide tip in preparation for brazing. The steel body is also washed to remove oil residue and rust protection that was applied for transport. The carbide tip is then inserted into the steel body, and both are brazed together using a specialized, proprietary brazing powder consisting of a mixture of copper, manganese, and tin, all of which originate from Germany or another EU member country. During the brazing process the steel body and carbide tip are heated to melt the brazing powder and to allow it to fill the joint. Th fully joined steel body and carbide tip are then splat cooled in oil to form a permanent

bond. After completion of the brazing process, the fully formed chisel then undergoes tempering and annealing in an annealing furnace to reduce the likelihood of any stress fractures occurring during use. Finally, the chisel is again sandblasted to remove any scaling that may have built up from the brazing process. The finished chisel is then reviewed for quality control, packaged, and shipped to the customer so as to be attached to the underground continuous mining machine 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). 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 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 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. Our office notes that in the case of the chisel, the tool is comprised of two components, i.e., a steel body and a carbide tip. The steel body, while cold forged in Italy, undergoes significant machining in Germany. A hole is precision drilled in the top of the body to accommodate the carbide tip. The base of the body is machined to exact specifications so it can fit into the holder on the continuous miner machine. Additionally, the steel body and carbide tip are permanently brazed together in Germany. After completion of the brazing process, the fully formed chisel then undergoes tempering and annealing in an annealing furnace to reduce the likelihood of any stress fractures occurring during use. Considering the totality of the circumstances, it is our view that the steel body and Chinese-origin carbide tip undergo a substantial transformation in Germany. Accordingly, the country of origin for the finished chisel is Germany. 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 (CFR), 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 CFR 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 Anthony Grossi at [email protected].
Sincerely,
(for) James Forkan Acting Director National Commodity Specialist Division