The country of origin and marking of a 302-piece tool set

N362594
July 8, 2026
OT:RR:NC:N1:164
CATEGORY: Origin; Marking Nithya Nagarajan Husch Blackwell LLP 1801 Pennsylvania Avenue NW, Suite 1000 Washington, DC 20006 RE: The country of origin and marking of a 302-piece tool set Dear Nithya Nagarajan: In your letter dated June 25, 2026, you requested a ruling regarding the country of origin and marking of a 302-piece tool set on behalf of your client, JS Products Inc. Product information was submitted with your request. The item under consideration is described as a 302-piece mechanics tool set packaged in a two-drawer, blow-molded plastic case for retail sale. You state that the set is designed for mechanical, automotive, and general applications to provide a complete, integrated toolkit capable of addressing a variety of fastener-driving tasks. The set consists of: 3 - 90-Tooth Quick Release Ratchet Handles (1/4", 3/8", 1/2" drives) 1 - 1/4" Drive 1.5" Socket Extension 1 - 1/4" Drive 3" Socket Extension 1 - 3/8" Drive 3" Socket Extension 1 - Magnetic Bit Driver 11 - 1/4" Drive 6-Point Standard SAE Sockets 9 - 1/4" Drive 6-Point Deep SAE Sockets 13 - 1/4" Drive 6-Point Standard Metric Sockets 12 - 1/4" Drive 6-Point Deep Metric Sockets 24 - 1/4" Drive Tamperproof Star Bit Sockets 8 - 3/8" Drive 6-Point Standard SAE Sockets 11 - 3/8" Drive 6-Point Standard Metric Sockets 9 - 3/8" Drive 12-Point Standard SAE Sockets 10 - 3/8" Drive 12-Point Standard Metric Sockets 12 - 3/8" Drive Bit Sockets 9 - 1/2" Drive 12-Point Standard SAE Sockets 9 - 1/2" Drive 12-Point Standard Metric Sockets 3 - 12-Point Short SAE Combination Wrenches

3 - 12-Point Short Metric Combination Wrenches 40 - Assorted Hex Keys 12 - Assorted Nut Driver Bits 100 - Assorted Screwdriver Bits Based on the submitted information, all constituent tools will be country of origin Vietnam except the three socket extensions, the magnetic bit driver, and the six combination wrenches which are made in China. In Vietnam, Chinese steel wire rod is cut and forged into blanks possessing the approximate shape and size of finished ratchet handles. Following that, the blanks undergo machining and finishing processes and are assembled with lesser components from Vietnam and China to produce complete and functional ratchet handles. Finally, all tools are combined and packaged together in a plastic case for export from Vietnam. 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., ratchet handles, socket extensions, magnetic bit driver) impart the essential character of the set and thus control origin. Amongst the tool holders, we determined that the three ratchet handles ultimately impart the set’s essential character because they are necessary to hold and drive a large quantity of sockets and socket extensions (140 total). The absence of the ratchet handles would harm the overall functional utility of the set’s components more than the absence of any other component. Accordingly, since the ratchet handles are forged in Vietnam, the country of origin of the 302-piece tool set will be 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. In your request, you suggest the tool set can be marked as country of origin Vietnam. However, 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