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HQ 734261
January 16, 1992

MAR-2-05 CO:R:C:V 734261 NL

CATEGORY: MARKING

Mr. Brian Johnson
Border Brokerage Company, Inc.
P.O. Box B
Blaine, WA 98230

RE: Country of Origin Marking - Axes and Axe Heads; Antidumping; Substantial Transformation; T.D. 54707(9) Applied.

Dear Mr. Johnson:

This is in response to your letter of July 17, 1991, submitted on behalf of Keystone Supplies, in which you request a ruling concerning the country of origin marking requirements for certain axes and axe heads.

FACTS:

Keystone assembles the axe in Canada using a head manufactured in China and a handle manufactured in the U.S. You also have advised us that the axe is sold with a steel wedge and a wood wedge, manufactured in the U.S., but for purposes of this ruling it is not necessary to consider the country of origin of these articles.

ISSUE:

What is the country of origin, for marking purposes, of an axe manufactured from a steel head of Chinese origin and a U.S.- origin wooden handle?

LAW AND ANALYSIS:

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 U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (of container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. In general, as provided at 19 CFR 134.1, the country of origin of an article is the country in which it was manufactured, produced, or grown. Additional processing or manufacture in another country must effect a substantial transformation in order to render such other country the country of origin. A substantial transformation is said to occur if processing or manufacture imparts a new name, character, or use to the imported article. An article of foreign origin is subject to the marking requirements unless, after importation into the U.S., it undergoes a substantial transformation.

Applying these principles to the instant request, it is the view of this office that the axe head which is manufactured in China does not become an article with new name, character, or use by reason of the attachment to it of a U.S.-origin wooden handle in Canada. For purposes of country of origin marking the country of origin of the axe head is China.

This position is based upon a number of previous Customs determinations regarding axe heads and similar articles. In T.D. 54707(9) (October 8, 1958) Customs held that axe heads imported separately or with American-made handles must be marked with the words "Axe Head Made In (country of origin)" or words of similar import. Although the decision did not discuss the substantial transformation principle, it is evident that the underlying rationale was that the attachment of a handle to an axe head does not change the axe head into a new article, or change its country of origin. To similar effect was the determination in Headquarters Ruling Letter 711069 (September 20, 1976), in which Customs ruled that foreign origin wooden handles, when combined with axe heads of U.S. origin, were required to be marked. The attachment of a wooden handle has also been found not to effect a change in the foreign status of hay forks, rakes, hoes, spades, and the like (T.D. 55033(5)(January 14, 1960)); and hammer heads (HRL 734246 (October 21,1991)). Most recently, we determined in HRL 950005 (January 9, 1992), that the assembly of a Chinese sledge hammer head with a Canadian handle in Canada was not a substantial transformation, and that both the head and the handle were required to be marked. This ruling modified DD 860604 which had determined in part that the country of origin of the sledge hammer was Canada. In sum, the previous decisions with respect to articles of this type, and specifically with respect to axe heads, compel the conclusion in this case that the attachment of U.S. handles to Chinese-origin axe heads does not affect the status of the latter as a product of China for country of origin marking purposes.

You have also asked, in view of the assembly of finished axes in Canada by the attachment of Chinese-origin heads to U.S.-origin handles, whether the axes are subject to antidumping duties. Your submission advises that in the opinion of Customs officials in Blaine, Washington, the axes are subject to the duties assessed pursuant to the Department of Commerce antidumping order in Heavy Forged Hand Tools, Finished or Unfinished, With or Without Handles From the People's Republic of China, 56 Fed. Reg. 6622 (February 19, 1991). Inasmuch as the caption of the order specifies finished and unfinished axes, imported with or without handles, it would appear that finished axes are within the scope of the antidumping order. However, for guidance in this matter we suggest that you refer questions to the Office of Compliance, International Trade Administration, U.S. Department of Commerce (202-377-4851).

HOLDING:

An axe head manufactured in China is not substantially transformed in Canada by the attachement of a U.S.-origin wooden handle, and in accordance with previous decisions is required to be marked as a product of China.

Sincerely,

John Durant, Director
Commercial Rulings Division

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