The tariff classification and country of origin of tool blanks
Active· CBP ruling HQ N350641· Issued 2025-07-18
Ruling text
N350641 July 18, 2025 CLA-2-82:OT:RR:NC:N1:118 CATEGORY: Classification; Origin TARIFF NO.: 8207.30.6095; 9903.01.25 James King Delmar International (N.Y.) Inc. 1 Lincoln Blvd., Suite 201 Rouses Point, NY 12979 RE: The tariff classification and country of origin of tool blanks Dear Mr. King: In your letter dated June 25, 2025, on behalf of Wila USA LLC, you requested a classification and country of origin determination for purposes of Section 232, IEEPA duties and marking under Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304). Pictures and descriptions of the manufacturing processes were included in your submission. The articles under consideration are two unfinished tool parts that will used in a press brake machine after they are further processed in the United States. The finished parts are identified as a top tool punch and a bottom tool die. The top tool punch is installed in the upper beam of a press brake machine, while the bottom tool die is installed in the bottom beam. They are used in conjunction with each other to form and shape sheet metal. Depending on the specific shape of the punch and die, the press brake machine can make a variety of parts used in different industries. You have stated that you plan to import the top tool punch and the bottom tool die separately and unfinished at the time of importation. You propose two manufacturing scenarios, which you refer to as Step 1 and Step 6. The following scenarios are the same for the top tool punch and the bottom tool die. Manufacturing scenario one (Step 1): German steel bars or Italian steel plate will be imported into the Netherlands and used interchangeably to manufacture the unfinished tools. In the Netherlands, the steel bars or steel plate are milled on all sides in a specialized mill machine into the overall form, shape, and contour of the finished tool. The tool blank is then sent to the United States for further processing, including induction curing, tempering, straightening, and shot blasting. The part of the tool that connects to the press brake machine is ground to accuracy, and the part of the tool that bends sheet metal is sharpened to precision. In some instances, depending on customer specifications, the length of the tool may be cut in order to fit into the press brake machine. Finally, a safety-click mechanism is mounted onto the tool and the tool is laser engraved. Manufacturing scenario two (Step 6): German steel bars or Italian steel plate will be imported into the Netherlands and used interchangeably to manufacture the unfinished tools. In the Netherlands, the steel bars or steel plate are milled in a specialized mill machine into the overall form, shape, and contour of the finished tool. The tool blank is further processed, which includes induction curing, tempering, straightening, and shot blasting. The part of the tool that connects to the press brake machine is ground to accuracy. The tool blank is then sent to the United States, where the part of the tool that bends sheet metal is sharpened to precision. In some instances, depending on customer specifications, the length of the tool may be cut in order to fit into the press brake machine. Finally, a safety-click mechanism is mounted onto the tool and the tool is laser engraved. Classification Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. GRI 2(a) extends the scope of the HTSUS headings to include unfinished parts, provided the unfinished parts have the essential character of the finished parts. GRI 2(a) further states that: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. In addition, Explanatory Note (EN) II under GRI 2(a) states that: The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term “blanks” means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part. Semi-manufactures not yet having the essential shape of the finished articles (such as is generally the case with bars, discs, tubes, etc.) are not regarded as “blanks.” Accordingly, two criteria which an article must meet in order to be classified as a blank for purposes of GRI 2(a) are (1) it must possess the approximate shape or outline of the finished article, and (2) the sole use must be for completion into the finished article. In this case, GRI 2(a) is applicable to the articles in both scenarios. They are blanks by definition and by statements in your submission. At the time of importation, they meet the two criteria stated above. They have the approximate shape or outline of a top tool punch and a bottom tool die and cannot be used for any other purpose. Information found in your submission indicates that the unfinished top tool punch and the bottom tool die are each a net shape blank which closely approximates the outline of the finished article it will form. Although the articles require some post-importation processing, upon importation they are readily recognizable as the finished articles they will become. There is also nothing to suggest that the articles have any practical use other than for incorporation into a press brake machine. Therefore, in both scenarios, this office finds that the imported tools are unfinished articles which have the essential character of complete or finished goods of subheading 8207.30, HTSUS. The applicable subheading for the unfinished top tool punch and the unfinished bottom tool die (in both manufacturing scenarios), when imported separately, will be 8207.30.6095, HTSUS, which provides Interchangeable tools for handtools, whether or not power-operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screwdriving), including dies for drawing or extruding metal, and rock drilling or earth boring tools; base metal parts thereof: Tools for pressing, stamping or punching, and parts thereof: Not suitable for cutting metal, and parts thereof…Parts. The general rate of duty will be 2.9 percent ad valorem. Country of Origin When determining the country of origin for purposes of applying current trade remedies under Section 232 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. In regard to the imported tools, it is our view that steel bars or steel plate are substantially transformed in the Netherlands into recognizable tool blanks (i.e., the top tool punch and the bottom tool die) in both of your manufacturing scenarios. Based on the submitted information, it is our opinion that no article emerges from the finishing operations in the United States with a new name, character, or use different from that prior to processing. Although not ready for direct use, the tool blanks that arrive in the United States have a pre-determined use and are in a dedicated physical form of a finished top tool punch and a finished bottom tool die. While several processes are performed in the Unites States, the amount of material removed is minimal. In addition, the machining focuses on the precision of surface dimensions and finish. Therefore, it is our determination that the country of origin of the unfinished top tool punch and unfished bottom tool die in both manufacturing scenarios (i.e., Step 1 and Step 6) is the Netherlands. Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading 8207.30.6095, HTSUS, listed above. The tariffs and additional duties cited above are current as of this ruling’s issuance. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/. 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 anthony.e.grossi@cbp.dhs.gov. Sincerely, (for) James Forkan Acting Director National Commodity Specialist Division
Source: rulings.cbp.gov — ruling N350641, retrieved 2026-10-12T06:04:57Z, republished verbatim. This digest is informational; only CBP issues binding rulings.