The country of origin and marking of a tool set

N361916
June 24, 2026
OT:RR:NC:N1:164
CATEGORY: Origin; Marking Vincent Liu Olympia Tools International Inc. 929 N. Grand Ave. Covina, CA 91724 RE: The country of origin and marking of a tool set Dear Mr. Liu: In your letter dated May 29, 2026, you requested a ruling regarding the country of origin and marking of a 302-piece tool set. Product information was submitted with your request. The item under consideration is described as a 302-piece mechanics tool set (Item No. 140-189) packaged in a molded plastic storage case for retail sale. You state the set will be imported fully assembled with no additional processing required. The set consists of: 10 - Metric 1/4" Drive Standard Sockets 10 - Metric 1/4" Drive Deep Sockets 10 - Metric 3/8" Drive 6-Point Sockets 10 - Metric 3/8" Drive Deep Sockets 10 - Metric 1/2" Drive 12-Point Bolt Sockets 10 - Metric 1/2" Drive Deep Sockets 10 - SAE 1/4" Drive Standard Sockets 10 - SAE 1/4" Drive Deep Sockets 10 - SAE 3/8" Drive 6-Point Sockets 10 - SAE 3/8" Drive Deep Sockets 10 - 1/2" 12-Point Bolt Sockets 10 - 1/2" Drive Deep Sockets 3 - 90-Tooth Ergonomic Ratchet Handles 4 - Socket Adapters 3 - Swivel Adapters 2 - 3/8" Spark Plug Sockets 1 - 1/2" Spark Plug Socket 1 - Magnet Retrieval Tool 10 - SAE Combination Wrenches 10 - Metric Combination Wrenches

10 - Metric Hex Keys 10 - SAE Hex Keys 1 - Magnetic Screwdriver Bit Driver 8 - 1/4" Drive Torx Sockets 2 - 3/8" Drive Torx Sockets 4 - 1/4" Metric Hex Sockets 4 - 3/8" Metric Hex Sockets 4 - 1/4" Driver SAE Hex Sockets 4 - 3/8" Driver SAE Hex Sockets 8 - Metric Nut Drivers 8 - SAE Nut Drivers 1 - 3/8" Drive 1.5" Socket Extension 1 - 1/4" Drive 2" Socket Extension 1 - 3/8" Drive 3" Socket Extension 1 - 1/2" Drive 3" Socket Extension 1 - 1/4" Drive 4" Socket Extension 1 - 3/8" Drive 6" Socket Extension 1 - 1/2" Drive 6" Socket Extension 3 - 6" Wobble Socket Extensions 75 - Driver Bits In your request, you present two origin scenarios. In Scenario 1, the three ergonomic ratchet handles are manufactured in Vietnam, and all other components are manufactured in China. In Scenario 2, the three ergonomic ratchet handles and the twenty combination wrenches are manufactured in Vietnam, and all other components are manufactured in China. In both scenarios, the components will be consolidated and packaged in China for retail sale. 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 Harmonized Tariff Schedule of the United States (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., ergonomic ratchet handles, socket adapters, socket extensions, magnetic screwdriver bit driver) impart the essential character of the set and thus control origin. Amongst the tool holders, we determined that the ergonomic ratchet handles ultimately impart the set’s essential character because they are necessary to hold and drive a large quantity of adapters, extensions, and sockets (166). Without the ergonomic ratchet handles, the functional utility of the set’s remaining components would be

drastically hindered. In either scenario, the ergonomic ratchet handles are manufactured in Vietnam, and the other tool holders are manufactured in China. Accordingly, the country of origin in both scenarios is Vietnam. 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. Friedlaender & 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. You propose that the external packaging will be marked as “Made in Vietnam,” and each item’s country of origin will also be clearly indicated on the item or packaging. The ultimate purchaser must be able to clearly identify the country of origin of each item in the set. Therefore, the origin of each item in the set must be clearly identified on the plastic storage case or the external packaging. Any references to the country where packaging occurred must be preceded by the country of origin markings. 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 (C.F.R.), 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 C.F.R. 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 Paul Taylor at [email protected].
Sincerely,
(for) James P. Forkan Director National Commodity Specialist Division