CLA-2 RR:CR:GC 965404 GOB
Ericsson Inc.
W. Robb Lane
Import/Export Compliance Manager
Distribution and Trade Compliance
740 East Campbell Road
Richardson, Texas 75081
RE: Maintenance tool set; Modification of HQ 964478
Dear Mr. Lane:
This is with respect to HQ 964478 issued to you November 16, 2001, which involved the classification, under the Harmonized Tariff Schedule of the United States ("HTSUS"), of the Ericsson Inc. maintenance tool set (LTT 408 38). We have reviewed the classification set forth in HQ 964478 and have determined that a portion of the holding 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 modification of DD 815332, as described below, was published in the Customs Bulletin on February 13, 2002. No comments were received in response to the notice.
FACTS:
In HQ 964478, the tool set was described as follows:
You state that the maintenance tool set “is designed specifically for use in the installation and maintenance of telecommunication equipment, which will be installed on site, by Ericsson personnel.”
The tool set includes the following items: wera slotted screwdriver (part # ESD 1578 A); tension tool (model GS2B); knipex pliers; snipe-nose pliers; wera screwdriver bit holder with screwdriver bits; rahsol torque driver (part LSC 21001); hexagon key; DT 320 digital multitester; wrist strap; fiber optics (rubber cap with optical fiber attached); mini maglite® electric torch with nonrechargeable alkaline batteries; and a molded plastic carry case. The carry case, which has a soft foam plastic insert, is not lined or specially shaped or fitted, but does snugly contain all of the items.
ISSUE:
What is the classification under the HTSUS of the maintenance tool set?
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’s may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.
In HQ 964478, we stated in pertinent part as follows:
After careful consideration, we find that the subject tool set is described in subheading 8206.00.00, HTSUS, in that it meets the terms of the subheading, as well as the EN. In this regard, we determine that the items in the tool set which are not themselves described in headings 8202 through 8205 (see above) do not change the essential character of the subject good, which is a tool set containing tools of two or more of headings 8202 through 8205. The items within the tool set which are not described in headings 8202 through 8205 serve to assist in the work performed by the tools of heading 8202 through 8205 and are auxiliary in nature to the central function of the tools of headings 8202 through 8205. The essential purpose of the tool set is to permit the user to engage in maintenance work via the use of the tools of headings 8202 through 8205.
Therefore, according to the terms of subheading 8206.00.00, HTSUS, the rate of duty for the maintenance tool set is the rate of duty applicable to that article in the set subject to the highest rate of duty. The article in the set which has the highest rate of duty is the molded plastic carry case which is classified in subheading 4202.12.20.10, HTSUS, as: “Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers: . . . With outer surface of plastics or of textile materials: With outer surface of plastics . . . Structured, rigid on all sides: Attache cases, briefcases and similar containers.”
The maintenance tool set is classified in subheading 8206.00.00, HTSUS, as: “Tools of two or more of headings 8202 to 8205, put up in sets for retail sale.” The general rate of duty is: “The rate of duty applicable to that article in the set subject to the highest rate of duty,” i.e., the rate of duty for the molded plastic carry case which is classified in subheading 4202.12.20.10, HTSUS.
This modification relates to the classification of the molded plastic tool case. EN 42.02 provides in pertinent part as follows: “This heading does not cover: . . . (f) Tool boxes or cases, not specially shaped or internally fitted to contain particular tools with or without their accessories (generally, heading 39.26 or 73.26).” [Emphasis in original.] We believe that the case at issue here, which is not specially shaped or fitted, is within the scope of exclusion (f) in EN 42.02. We make this determination because the tools are imported in the case. Were the case imported separately, it would not be recognizable as a tool case. Accordingly, we find that the case is provided for in heading 3926, HTSUS, and is classified in subheading 3926.90.98, HTSUS, as: “Other articles of plastics . . . : . . . Other: . . . Other.”
Because the rate of duty of subheading 3926.90.98, HTSUS, is less than the rate of duty of subheading 4202.12.20, HTSUS, we must reexamine which of the items in the tool set carries the highest rate of duty.
If imported separately, the items in the tool set would be classified in the following HTSUS provisions: wera slotted screwdriver – subheading 8205.40.00; tension tool – subheading 8205.59.55; knipex pliers – subheading 8203.20.60; snipe-nose pliers – subheading 8203.20.60; hexagon key – subheading 8204.11.00; wera screwdriver bit holder – subheading 8466.10.80; screwdriver bits – subheading 8207.90.60; rahsol torque driver – subheading 8466.10.80; DT 320 digital multitester – subheading 9030.31.00; wrist strap – subheading 8536.30.80; optic fiber flashlight extension – subheading 9013.80.90; mini maglite® electric torch with batteries – subheading 8513.10.20 for electric torch, subheading 8506.10.00 for batteries; and molded plastic carry case – subheading 3926.98.90.
The provision which carries the highest rate of duty is subheading 8513.10.20, HTSUS, for the electric torch. Subheading 8513.10.20, HTSUS, provides for: “Portable electric lamps . . .: Lamps: Flashlights.”
HOLDING:
The maintenance tool set is classified in subheading 8206.00.00, HTSUS, as: “Tools of two or more of headings 8202 to 8205, put up in sets for retail sale.” The general rate of duty is: “The rate of duty applicable to that article in the set subject to the highest rate of duty,” i.e., the rate of duty for the electric torch which is classified in subheading 8513.10.20, HTSUS.
EFFECT ON OTHER RULINGS:
HQ 964478 is modified. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
John Durant, Director
Commercial Rulings Division