CLA-2 RR:TC:MM 959568 HMC
Port Director of Customs
P.O. Box 619050
DFW Airport, TX 75261
RE: IA 27/96; "6-Piece Kitchen Gadget Set;" Subheadings
8205.51.30, 8205.55.60 and 8205.90.00; Household Handtools; Other
Handtools; GRI 3(b); GRI 6; Explanatory Notes (VIII) and (X) to
GRI 3(b); Additional U.S. Rule of Interpretation 1(a); Hartz
Mountain Corp. v. United States; Explanatory Note 82.05; NY
881077 and NY 864109.
Dear Port Director:
This is in response to your memorandum of July 1, 1996,
(CLA1-01:D:C CLN), forwarding a request for internal advice,
dated May 14, 1996, submitted by Evans and Wood & Co, Inc., on
behalf of B&F Systems, Inc., concerning the classification of a
6-Piece Kitchen Gadget Set (kitchen set) under the Harmonized
Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise consists of the following five kitchen hand
tools: corkscrew opener, garlic press, potato peeler, bottle
opener and can opener, plus a special stand to store the tools.
The stand and the tools are sold together, gift boxed.
The merchandise was entered under subheading 8205.51.30,
HTSUS, as household hand tools. However, you informed the
importer that, based on New York Ruling (NY) 881077, dated
December 11, 1992, the kitchen set was classifiable under
subheading 8205.90.00, HTSUS, as a set of articles of two or more
subheadings of heading 8205, HTSUS. The rate of duty under
subheading 8205.90.00, HTSUS, is the rate of duty applicable to
that article in the set subject to the highest rate of duty. You
determined that the highest rate of duty was that of subheading
8205.59.55, HTSUS, the subheading that you found applicable to
the corkscrew opener.
The provisions under consideration are as follows:
8205 Handtools (including glass cutters) not
elsewhere specified or included; blow
torches and similar self-contained
torches; vises, clamps and the like,
other than accessories for and arts of
machine tools; anvils; portable forges;
hand- or pedal-operated grinding wheels
with frameworks; base metal parts
thereof:
Other handtools (including glass
cutters) and parts thereof:
8205.51 Household tools, and parts
thereof:
Of iron or steel:
8205.51.30 Other(including
parts)...4.3%
8205.59 Other:
Other:
Other:
8205.59.55 Other...5.3%
8205.90.00 Sets of articles of two or
more of the foregoing
subheadings...the rate of duty
applicable to that article in
the set subject to the highest
rate of duty
ISSUE:
Whether the articles in the "6-Piece Kitchen Gadget Set" are
classifiable as a household hand tool set of subheading
8205.51.30, HTSUS.
LAW AND ANALYSIS:
Merchandise is classifiable under the 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, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6. GRI 6 states
that the classification of goods in the subheadings of a heading
shall be determined according to the terms of those subheadings
and any related subheading notes and, mutatis mutandis, to the
above rules, on the understanding that only subheadings at the
same level are comparable. For the purposes of this rule, the
relative section, chapter and subchapter notes also apply, unless
the context otherwise requires.
There is no dispute that the tools of the kitchen set fall
under heading 8205, HTSUS, and that the stand is provided for in
heading 3924, HTSUS. The kitchen set is therefore not described
in any one heading of the HTSUS.
GRI 3(a) states that when, by application of rule 2(b) or
for any other reason, goods are, prima facie, classifiable under
two or more headings, 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.
GRI 3(b) states that 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. Since we
have various items sold together with a stand, we must first
determine, at the heading level, if we have a set put up for
retail sale.
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the official interpretation of
the Harmonized system. While not legally binding on the
contracting parties, and therefore not dispositive, the ENs
provide a commentary on the scope of each heading of the
Harmonized System and are thus useful in ascertaining the
classification of merchandise under the System. Customs believes
the Notes should always be consulted. See T.D. 89-80, 54 Fed.
Reg. 35127, 35128 (Aug. 23, 1989).
Explanatory Note (X) to GRI 3(b), at page 5, states 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 (e.g., in boxes or cases or on
boards).
In this instance, we believe the kitchen set meets the ENs
definition of "goods put up in sets for retail sale" because it:
(1) consists of at least two different articles which are, prima
facie, classifiable in different headings; (2) consists of
articles put up together to carry out the specific activity of
food preparation in that the stand is specifically designed to
hold the kitchen tools; and, (3) the articles are put up in a
manner suitable for sale directly to users without repacking. We
thus believe that the kitchen set qualifies as a set of GRI 3(b).
Accordingly, we must find whether the tools or the stand gives
the set its essential character.
Explanatory Note (VIII) to GRI 3(b), at page 4, states that
the factor which determines essential character will vary as
between different kinds of goods. It may, for example, be
determined by the nature of the material or component, its bulk,
quantity, weight or value, or by the role of a constituent
material in relation to the use of the goods.
We believe that, in this instance, the tools impart the
essential character to the kitchen set. They are the most
visually, numerically and structurally significant components of
the set. Furthermore, the tools would be the items used to
perform the main function of food preparation. The stand simply
assists in this function, as a storage compartment for the tools
and to keep them readily accessible to the user. Based on GRI
3(b), we find that the kitchen set is classifiable as if
consisting only of the hand tools.
We must now determine what is the classification of these
kitchen hand tools at the subheading level. Although there is no
dispute that the tools are provided in heading 8205, HTSUS, the
importer contends that the merchandise is appropriately
classified under subheading 8205.51.30, HTSUS, as household hand
tools, and not under subheading 8205.59.55, HTSUS. The importer
cites NY 864109, dated July 9, 1991, to support its contention
and states that NY 881077 does not apply in this instance. In NY
881077, Customs classified three kinds of Screwpull cork screws.
This ruling does not explain whether these items were intended
for use in the home. However, the National Import Specialist has
indicated that the Screwpull cork screws of NY 881077 were of the
kind principally used in a commercial establishment. In
contrast, in NY 864109, Customs found that a cork screw included
in a set with various cutlery articles made of pewter was
classifiable under subheading 8205.51.75, HTSUS. We find that
the foregoing rulings are distinguishable and do not apply in
this instance since here we do not have cutlery articles nor cork
screws of the kind used in a commercial establishment; but, we
agree with the importer's contention that the items in the
kitchen set are household hand tools of subheading 8205.51.30,
HTSUS.
General EN to Chapter 82, at page 1195, states that this
Chapter includes tools which, apart from certain specified
exceptions (e.g., blades for machine saws), are used in the hand
(headings 82.01 to 82.05). EN 82.05, at page 1201, states that
[t]his heading covers all hand tools not included in other
headings of this Chapter or elsewhere in the Nomenclature
(see the General Explanatory Notes to this Chapter),
together with certain other tools or appliances specifically
mentioned in the title.
EN 82.05 further states that this group includes:
(1) A number of household articles, including some with
cutting blades but not including mechanical types (see the
Explanatory Note to heading 82.10), having the character of
tools and accordingly not proper to heading 73.23, such as:
Flat irons (gas, paraffin (kerosene), charcoal, etc., types,
but not electric irons which fall in heading 8516), curling
irons; bottle openers, cork screws, simple can openers
(including keys); nut-crackers....
The U.S. Court of International Trade (CIT) has noted
Webster's New World Dictionary of American English 654 (3d
College ed. 1988)'s definition of the term "household" as "of a
household or home; domestic." The Court determined that when
"household" is used with the term "articles" a use provision is
created. Hartz Mountain Corp. v. United States, 903 F.Supp. 57,
59, CIT Slip Op. 95-154(Sept. 1, 1995). The Court found the
phrase "household articles" to be a use provision within the
context of subheading 3924.90.50, HTSUS. Similarly, we believe
that, within the context of subheading 8205.51, HTSUS, when
"household" is used with the term "tools" a use provision is
created.
Additional U.S. Rule of Interpretation 1(a), HTSUS, states
that in the absence of special language or context which
otherwise requires, a tariff classification controlled by use
(other than actual use) is to be determined in accordance with
the use in the United States at, or immediately prior to, the
date of importation, of goods of that class or kind to which the
imported goods belong, and the controlling use is the principal
use. The subject articles will thus fall under subheading
8205.51, HTSUS, if they belong to the class or kind of articles
principally used in the home. The Court has established various
factors, which are indicative but not conclusive, to apply when
determining principal use within a particular class or kind.
They include: general physical characteristics, the expectation
of the ultimate purchaser, channels of trade, environment of sale
(accompanying accessories, manner of advertisement and display),
use in the same manner as merchandise which defines the class,
economic practicality of so using the import, and recognition in
the trade of this use. See Hartz Mountain Corp., 903 F.Supp. at
59. In this instance, these factors are helpful in determining
whether the gadgets in the kitchen set are intended for home use.
The kitchen set in issue consists of five kitchen hand
tools, including a corkscrew opener, a garlic press, a potato
peeler, a bottle opener and a can opener. Not only are some of
these items specifically mentioned in the ENs to heading 8205,
HTSUS, to wit, bottle openers, cork screws and simple can
openers, the evidence presented also shows that the articles are
marketed as household implements for use in a kitchen or a table.
Moreover, the evidence presented indicates that the consumer will
generally be expected to store such items in the kitchen of a
home. We therefore find that the tools of the "6-Piece Kitchen
Gadget Set" will be principally used in a kitchen or a table for
household purposes, and, as such, they are classifiable under
subheading 8205.51.30, HTSUS, as other household tools of iron or
steel.
HOLDING:
Under the authority of GRI 1, the "6-Piece Kitchen Gadget
Set" is properly classifiable under subheading 8205.51.30, HTSUS,
as "[o]ther handtools...: [h]ousehold tools...: [o]f iron or
steel: [o]ther. The rate of duty is 4.3% ad valorem.
Please advise the internal advice applicant of this
decision. Sixty days from the date of the decision the Office of
Regulations and Rulings will take steps to make the decision
available to Customs personnel via the Customs Rulings Module in
ACS and the public via the Diskette Subscription Service, Freedom
of Information Act and other public access channels.
Sincerely,
John Durant, Director
Tariff Classification Appeals Division