CBP Says Bolt Cutters Are of China Origin Despite Use of Pre-Determined Parts

Bolt cutter blades and joints forged in South Korea specifically for bolt cutters assembled in China are not recognizable enough for the finished good to be a product of South Korea, CBP said in an April 9 ruling. Harris Bricken lawyer Adams Lee asked for a prospective ruling from CBP on behalf of Weihai Maxpower Tools Co, on the country of origin and marking requirements for the bolt cutters. The bolt cutters would be subject to the Section 301 tariffs on goods from China, the agency said.

The bolt cutters comprise several components produced in South Korea and China, the company told CBP. “These components include two cutter blades, two blade joints, two tubular steel handles, and two steel handle joint units,” it said. In South Korea, the blades and joints are forged from alloy steel sourced mostly from China, the company said. “In China, the blades and joints are subjected to machining and grinding processes to meet precise measurements and shape specifications,” it said. “Holes are punched into the blades so that they can be attached to the joints and the handles. The blades and joints are hardened and tempered through a heat treatment.”

The company argued that “after the forging of the blades and joints in South Korea, these components are dedicated for a use in the specifically designed bolt cutter.” While this means “they have a pre-determined use at the time they are exported from South Korea to China,” that is only one factor to be considered and “does not preclude a finding of substantial transformation,” the agency said.

The bolt cutter parts in this situation differ from the components considered in the 1993 Court of International Trade case involving National Hand Tool, CBP said. “Unlike the tools in National Hand Tool which were in the final form at the time they left Taiwan and were clearly recognizable by name, although not finished; the blades that leave South Korea are not clearly recognizable as bolt cutter blades and may be mistaken as blades for other tools, such as pruning shears,” it said. “ In addition, the joints are not recognizable by name, but are merely rectangular pieces of steel which require additional processing before use in the assembly of the bolt cutters in China.”

The agency found that the leverage forces created through the bolt cutter handles are equally important as the blades. “When we consider that roughly forged blades are shipped to China where they are machined and ground to create the blade edge necessary for cutting, prepared for assembly and assembled to handles which are produced in China from steel tubes, the totality of the evidence leads us to conclude that the country of origin of the bolt cutters is China,” CBP said.