RE: The country of origin of a multi-utility axe

U.S. Department of Homeland Security U.S. Customs and Border Protection National Commodity Specialist Division One World Trade Center, Suite 51.201 New York, NY 10007 U.S. Customs and Border Protection N365102 September 22, 2026 OT:RR:NC:N1:118 CATEGORY: Origin Gary Xu Meridian International Co., Ltd. 1886 Laiyin Road, Songjiang Shanghai 201615 China RE: The country of origin of a multi-utility axe Dear Mr. Xu: In your letter dated September 16, 2026, you requested a country of origin determination for purposes of Section 301, other duties, and marking. Pictures and descriptions of the manufacturing processes were included in your submission. The product under consideration is identified as a HUSKY 22 oz multi-utility axe, SKU 1003235643, with an overall length of 36 cm. The steel axe is a general-purpose outdoor and utility tool. It is intended for light chopping, splitting kindling and small firewood, driving tent stakes, and performing assorted cutting, prying, and striking tasks around campsites, backyards, or worksites. The axe head and the handle are forged from a single piece of carbon steel, purchased locally in Vietnam. The tool has a striking face at one end and a blade at the other, with a contoured handle. The butt of the handle is overmolded with a thermoplastic rubber grip for comfort and slip resistance. You have stated that the multi-utility axe will be produced in Vietnam and China. In Vietnam, carbon steel stock is cut into a forging blank. The blank is then hot-forged into the final shape and size of the multi-utility axe, with the head and handle formed as one integrated piece, including the striking face and the blade. The tool is further rough polished and sandblasted before being sent to China. Upon arrival in China, it is heat-treated and the blade’s cutting edge is finish-ground to refine and smooth the edge profile. A black powder-coat paint is applied over the steel body of the axe and selected areas are buffed and polished to expose the bare steel and produce a metallic-colored appearance. The brand logo and required warning text are laser-marked on the face of the blade, the axe is cleaned, and an anti-rust treatment is applied. Finally, the thermoplastic rubber grip is applied to the handle and the axe is packaged to the customer’s requirements. 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. Friedlaender & 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. Regarding the finished multi-utility axe, it is our view that a substantial transformation occurs in Vietnam. It is here that carbon steel stock is cut and hot-forged into the final shape and size of the multi-utility axe, with the head and handle formed as one integrated piece. Based on the provided descriptions and pictures of the additional processing and assembly operations performed in China, the steel piece that incorporates the integrated head and handle is not substantially changed so as to transform it into a new article with a different name, character, or use. It is therefore the opinion of this office that the country of origin of the HUSKY 22 oz multi-utility axe, SKU 1003235643, is Vietnam. 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 P. Forkan Director National Commodity Specialist Division