United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1997 NY Rulings > NY 801199 - NY 801445 > NY 801378

Previous Ruling Next Ruling
NY 801378




September 9, 1994

CLA-2-82:S:N:N3:115 801378

CATEGORY: CLASSIFICATION

TARIFF NO.: 8205.40.0000; 8207.90.6000; 8205.80.0000

Mr. Mick Blakely
C.F. Liebert, Inc.
#8 - 12th Street
P.O. Box 1890
Blaine, WA 98231-1890

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of screwdrivers, bitpacs and sharpeners from Canada

Dear Mr. Blakely:

In your letter dated August 11, 1994, on behalf of Picquic Tool Co., Vancouver, B.C., Canada, you requested a binding ruling on the status of screwdrivers, bitpacs and sharpeners from Canada under the NAFTA pertaining to classification and the country of origin marking requirements.

The merchandise is described as follows:
a) Screwdrivers - models #88101 and #91102 are entirely made in Canada from material sources that will originate either in the United States or Canada.
b) Bitpacs - will consist of a plastic storage unit capable of re-use and is entirely made in Canada from material originating in the United States or Canada. Each storage unit contains a bit which is made in Taiwan and imported into Canada. The bit will not be subject to processing in Canada.
c) Drill Bit Sharpener - which includes a grindstone disk 2" in diameter by 3/8" thick mounted on a 1/4" diameter steel shaft. It is composed of corundum (aluminum oxide) with smaller amounts of the oxides and silicates of aluminum and magnesium. The sharpener can not be operated independently and must be attached to an electric drill. The sharpening device is comprised of a jig for holding a drill bit and is equipped with an adjustable support. The rotatable grindstone is held in a frame. The sharpener is adjustable to permit sharpening of different types of bits from positions and/or angles. The drill bit sharpener will be made up of materials manufactured in Canada with the exception of the grindstone which would be imported into Canada.

The applicable tariff provision for the screwdrivers, models #88101 and #91102, will be 8205.40.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for screwdrivers and parts thereof. The Canadian rate of duty will be 2.4% ad valorem. The submitted literature indicates that the screwdriver sets would be packaged in a "dynamic contemporary packaging."

The following rules of country of origin marking are applicable:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304) provides in general that any article of foreign origin (or its container) imported into the United States must be marked conspicuously, indelibly, legibly and as permanently as the nature of the article will permit in such manner as to indicate the country of origin to the ultimate purchaser in the United States.

Section 134.32 of the Customs Regulations (19 CFR 134.32) provides for general exceptions to marking requirements. In your particular instance, subsection (d) applies which provides for the exception to the marking requirements for articles for which the marking of the containers will reasonably indicate the origin of the articles.

The applicable tariff provision for the Bitpacs (consisting of Taiwanese bits and Canadian cases) will be 8207.90.6000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for interchangeable tools for handtools, whether or not power-operated, or for machine-tools: other interchangeable tools, and parts thereof: other: not suitable for cutting metal, and parts thereof: for handtools, and parts thereof... The general rate of duty will be 6.2% ad valorem.

The Bitpacs (bit + case) do not qualify for preferential treatment under the NAFTA because they will not be wholly obtained or produced entirely in the territory of a NAFTA country.

The following rules of country of origin marking are applicable:

For the Bits - They will be marked "Made in Taiwan" on the plastic re-usable case as prescribed in the Section 304 of the Tariff Act of 1930 paragraph cited above.

For the Plastic Re-Usable Cases - They will be marked "Made in Canada" (as your sample reveals). Furthermore, should the name of your company, Picquic Tool Co. Inc., and telephone number appear on the case, the marking requirement for the bits "Made in Taiwan" must appear in close proximity to the "Made in Canada" marking and with the same size lettering.

The applicable subheading for the drill bit sharpener will be 8205.80.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for a hand- or pedal-operated grinding wheels with frameworks. The Canadian rate of duty will be 0.7% ad valorem. This classification is consistent with the classification previously issued to your client in NY Ruling 854630 which you cited in this inquiry.

This office would not classify the grindstone separately as Section 102.11 General Rules is applicable. This regulation is found in Treasury Decision 94-4 Rules for Determining the Country of Origin of a Good for Purposes of Annex 311 of the North America Free Trade Agreement. The country of origin marking requirement for the drill bit sharpener would be "Canada."

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Office of Regulations and Rulings, U.S. Customs Service, 1301 Constitution Ave. N.W., Franklin Court, Washington, D.C. 20229.

Sincerely,

Jean F. Maguire
Area Director

Previous Ruling Next Ruling

See also: