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HQ 964142




December 5, 2000
CLA-2 RR:CR:GC 964142 GOB

CATEGORY: CLASSIFICATION

TARIFF NO.: 8207.90.60

Jonathan P. Beck
Tower Group International
1099 Winterson Road
Building 19, Suite 105
Linthicum, MD 21090-2225

RE: Interchangeable tools for handtools; NY E85716 revoked

Dear Mr. Beck:

This is with respect to New York Ruling Letter (“NY”) E85716, issued to you on behalf of Black & Decker Corporation by the Customs National Commodity Specialist Division, New York, on August 23, 1999. In that ruling, three sets of interchangeable tools for power handtools were classified in subheading 8207.90.75, Harmonized Tariff Schedule of the United States (“HTSUS”). We have reviewed that classification and have determined that it is incorrect. This ruling sets forth the correct classification.

Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation of NY E85716 was published in the Customs Bulletin on November 1, 2000. No comments were received in response to that notice.

FACTS:

All three sets of power tool accessories are in plastic molded cases. The first set of tools includes the following: magnetic bit holder, drill bits, screwdriver bits, sockets, nut driver, and ruler. The second set includes: drill bits, screws and countersinks, magnetic bit holder, screwdriver bits, and screw extractor. The third set includes: nut driver, magnetic bit holder, screwdriver bits, and drill bits. All three sets of tools may be collectively referred to herein as “the goods.”

ISSUE:

What is the correct tariff classification of the above described goods?

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied.

GRI 3 provides as follows:

When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:

The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

Explanatory Note (X) to GRI 3(b) provides that:

... the term "goods put up in sets for retail sale" shall be taken to mean goods which:

(a) consist of at least two different articles which are, prima facie, classifiable in different headings ...;

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking ...

We find that the goods cannot be classified at GRI 1 because they are prima facie classifiable under more than one heading. For example, the following are the HTSUS headings that the items within the sets would be provided for in. The first set: magnetic bit holder – 8466; drill bits – 8207; screwdriver bits – 8207; sockets – 8204; nut driver – 8204; and ruler – 9017. The second set: drill bits – 8207; screws and countersinks – 7318; magnetic bit holder – 8466; screwdriver bits – 8207; and screw extractor – 8207. The third set: nut driver – 8204; magnetic bit holder – 8466; screwdriver bits – 8207; and drill bits – 8207.

We find that GRI 3(a) is relevant here in that two or more headings each refer to part only of the items in a set put up for retail sale. Pursuant to GRI 3(a) in that situation, those headings are to be regarded as equally specific in relation to those goods.

We then turn to GRI 3(b) and an evaluation of which item gives each set its essential character. With respect to each of the three sets, we find that there is no one item which gives the set its essential character. For example, there is no evidence or documentation to the effect that any one item within each set has a value substantially higher than the other items. Also, there is no indication that any one item within each set performs a function that is much more critical or indispensable than the other items within each set.

Therefore, we look to GRI 3(c) to classify the goods “under the heading which occurs last in numerical order among those which equally merit consideration.”

With respect to each of the sets, we find that there are items which are of lesser importance than the other items in the same set (i.e., they perform functions which are less important than the functions performed by the other items) and thus do not merit equal consideration with respect to the GRI 3(c) determination. The items which do not merit equal consideration in the context of GRI 3(c) are: first set – magnetic bit holder and ruler; second set – magnetic bit holder, screws and countersinks; and third set – magnetic bit holder. With respect to the magnetic bit holders, we note that they are not in continual use. They are designed to hold hex shank tools and the drill bits for all three sets have round shanks, i.e., in each set, the magnetic bit holders cannot be used with the drill bits.

The items within each set which merit equal consideration with respect to GRI 3(c) are as follows: first set – drill bits, screwdriver bits, sockets, and nut driver; second set – drill bits, screwdriver bits, and screw extractor; and third set – nut driver, screwdriver bits, and drill bits.

Accordingly, in choosing the last subheading in numerical order among those meriting equal consideration, we find that the goods are classified as follows. Each of the three sets is classified in subheading 8207.90.60, HTSUS, as: “Interchangeable tools for handtools, whether or not power-operated ... : Other interchangeable tools, and parts thereof: ... Other: ... Other: ... Not suitable for cutting metal, and parts thereof: For handtools, and parts thereof.”

HOLDING:

Each of the three sets is classified in subheading 8207.90.60, HTSUS, as: “Interchangeable tools for handtools, whether or not power-operated ... : Other interchangeable tools, and parts thereof: ... Other: ... Other: ... Not suitable for cutting metal, and parts thereof: For handtools, and parts thereof.”

EFFECT ON OTHER RULINGS:

NY E85716 is revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.

Sincerely,

John Durant, Director
Commercial Rulings Division

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