CLA-2:CO:R:C:M 089976 JAS
Mr. John Goodrich
Fingerhut Corporation
4400 Baker Road, A-195
Minnetonka, Minnesota 55343
RE: Ratchet Socket Set Consisting of Ratchet Handles, Extension
Bars, Screwdriver Bits, and Sockets
Dear Sir:
This letter concerns the tariff status of a Drive Socket
Set from Taiwan, the subject of previous rulings to your company.
FACTS:
New York ruling 824997, dated October 30, 1987, concerned
the tariff status of an 87-piece ratchet socket set. The
description of that set is incorporated by reference in this
decision. Ruling 824997 held that the merchandise was
classifiable under item 651.75, Tariff Schedules of the United
States (TSUS), and on or after January 1, 1989, in subheading
8206.00.0000, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). The latter provision covers tools of two or
more of headings 8202 to 8205, put up in sets for retail sale,
dutiable under subheading 8204.20.0000, socket wrenches, with or
without handles, drives and extensions, and parts thereof, at the
rate of 9 percent ad valorem.
Subsequently, on June 19, 1990, your company applied for a
ruling on the same merchandise. New York replied by letter dated
August 13, 1990 (854930) and held the merchandise to be
classifiable in subheading 8466.10.0070, HTSUSA, tool holders for
any type of tool for working in the hand: tool holders and self-
opening dieheads. The rate of duty is 4.9 percent ad valorem.
- 2 -
This change in classification was made necessary when it was
discovered that heading 8206 did not apply because the ratchet
socket set did not contain tools of two or more of the headings
8202 to 8205.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) 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, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.
In accordance with GRI 3(a), goods put up in sets for retail
sale, which cannot be classified in a heading providing a
specific description, are to be classified as if consisting of
the component which gives them their essential character, insofar
as this criterion is applicable. Because heading 8206 was found
not to apply, it became necessary to invoke GRI 3(a). The
ratchet handle was then found to be the component essential to
the operation of every other component in the set, and was the
component always in use. It was therefore determined that the
ratchet handle imparted the essential character to the socket
set, thus making heading 8466 applicable.
HOLDING:
The 87-piece ratchet socket set is classifiable in
subheading 8466.10.0070, HTSUSA, as indicated in New York ruling
854930.
EFFECT ON OTHER RULINGS:
New York ruling to you dated October 30, 1987 (824997) is
revoked under the authority of section 177.9(d)(1), Customs
Regulations.
Sincerely,
John Durant, Director
Commercial Rulings Division