CLA-2 OT:RR:CTF:TCM H278181 ALS
Mr. Heidar Nuristani
Central Purchasing, LLC 3491 Mission Oaks Boulevard
Camarillo, California 93011
RE: Modification of HQ H097658 (December 31, 2013) regarding the tariff classification of Mandrels; Modification of HQ H251432 (October 20, 2016) regarding the tariff classification of Mandrels.
Dear Mr. Nuristani:
In a letter to U.S. Customs and Border Protection (CBP), you had requested a reconsideration of a tariff classification ruling under the Harmonized Tariff Schedule of the United States (HTSUS) for a bi-metal hole saw kit that includes mandrels.
In CBP Ruling NY N090938 (February 10, 2010), CBP classified the saw kit under subheading 8207.50.20, HTSUS, which provides for " Interchangeable tools for handtools, whether or not power operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screwdriving), including dies for drawing or extruding metal, and rock drilling or earth boring tools; base metal parts thereof: Tools for drilling, other than for rock drilling, and parts thereof: With cutting part containing by weight over 0.2 percent of chromium, molybdenum, or tungsten or over 0.1 percent of vanadium. . .” We also noted in the ruling that the “six hole saws are appropriately classified in heading 8202, HTSUS, as saw blades; and the two mandrels are appropriately classified in heading 8207, HTSUS, as tools for drilling.” [Emphasis added.]
In CBP Ruling HQ H097658, we reconsidered NY N090938 and found the ruling to be in error with respect to the classification of the bi-metal hole saw kit including mandrels. HQ H097658 revoked NY N090938. In doing so, HQ H097658 noted that in some cases the mandrels with drill bits of the kit were imported separately. While mandrels were not the subject of that ruling, HQ H097658 stated that “the two mandrels are appropriately classified in heading 8207, HTSUS, as tools for drilling.” The article classified in HQ H097658, bi-metal hole saw kit including mandrels, is not at issue here.
In CBP Ruling HQ H251432, we reconsidered NY J82340 (March 25, 2003) and found the ruling to be in error with respect to the classification of the Newell Rubbermaid Metal/Wood Door Kit and Wood Door Kit. In doing so, we stated that the “Metal/Wood Door Kit consists, in relevant part, of 2 bi-metal hole saws of heading 8202, HTSUS, and a mandrel of heading 8207, HTSUS.” [Emphasis added.] The articles classified in HQ H251432, the Newell Rubbermaid Metal/Wood Door Kit and Wood Door Kit, are not at issue here.
We emphasize that the subject of this proposed modification are not the articles that were actually classified in the cases under reconsideration. Rather, the subject of this proposed modification are the statement from HQ H097658 that “The six hole saws are appropriately classified in heading 8202, HTSUS, as saw blades; and the two mandrels are appropriately classified in heading 8207, HTSUS, as tools for drilling” [Emphasis added] and the statement from HQ H251432 that “As an initial matter, CBP observes that the Metal/Wood Door Kit and Wood Door Kit each consist of a variety of individual component articles that are, prima facie, classifiable in two or more headings. Specifically, the Metal/Wood Door Kit consists, in relevant part, of 2 bi-metal hole saws of heading 8202, HTSUS, and a mandrel of heading 8207, HTSUS” [Emphasis added]. In other words, the statements regarding the classification of mandrels as stand-alone articles is what is under consideration here.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to modify HQ H097658 with respect to the statement regarding the classification of mandrels alone and modify HQ H251432 with respect to the statement regarding the classification of mandrels, was published on April 15, 2020, in Volume 54, Number 14 of the Customs Bulletin. No comments were received in response to this notice.
FACTS:
The subject mandrels in each case are cylinders made of metal that have an indentation at one end into which a metal drill bit is fitted, or around which other metal is fixed so that it may be worked. Mandrels are at times referred to as “arbors”, as discussed below.
ISSUE:
Are the stand-alone mandrels referenced in HQ H097658 and the stand-alone mandrel referenced in HQ H251432, as described above, properly classified under heading 8207, HTSUS, which provides for “Interchangeable tools for handtools, whether or not power operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screwdriving), including dies for drawing or extruding metal, and rock drilling or earth boring tools; base metal parts thereof”, or under heading 8466, HTSUS, which provides for “Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for the machines; tool holders for any type of tool for working in the hand”?
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order. The HTSUS headings and subheadings at issue are the following:
8207 Interchangeable tools for handtools, whether or not power operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screwdriving), including dies for drawing or extruding metal, and rock drilling or earth boring tools; base metal parts thereof:
8207.50 Tools for drilling, other than for rock drilling, and parts thereof:
8207.50.20 With cutting part containing by weight over 0.2 percent of chromium, molybdenum, or tungsten or over 0.1 percent of vanadium...
* * *
8466 Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for the machines; tool holders for any type of tool for working in the hand:
8466.10.01 Tool holders and self-opening dieheads...
Note 2 to Chapter 82, HTSUS, states that “[p]arts of base metal of the articles of this chapter are to be classified with the articles of which they are parts, except parts separately specified as such and toolholders for handtools (heading 8466).”
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs 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, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
We note that a mandrel is not defined within the HTSUS or within the ENs. When a term is not defined within the HTSUS, the common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities, and other reliable sources. Nippon Kogasku (USA Inc. v. United States, 69 CCPA 89, 673 F.2d 380 (Fed. Cir. 1982). The term “mandrels” is defined as a “spindle or an axle used to secure or support material being machined or milled” or a shaft on which a working tool is mounted, as in a dental drill.” The Free [Online] Dictionary, https://www.thefreedictionary.com/Arbor+(tool) (2019). We also note that when searching for the term “arbor (tool)” within The Free Dictionary the search redirects to the term “mandrel.” See also Merriam-Webster [Online] Dictionary, https://www.merriam-webster.com/dictionary/mandrel (2019) (defining “mandrel” as a “usually tapered or cylindrical axle, spindle, or arbor inserted into a hole in a piece of work to support it during machining” [emphasis added]). Thus, it appears that the terms “mandrel” and “arbor” are used interchangeably when referring to a cylindrical tool used to hold or secure a working tool or material that is worked by another tool.
As referenced above, note 2 to chapter 82, HTSUS, specifically notes that “toolholders for handtools” of heading 8466 are not to be classified with the articles of which they are parts. Additionally, the EN for heading 8207 states that the “heading also excludes ‘[w]ork and tool holders for machines or hand tools, and self opening dieheads (heading 84.66).’” Thus, the threshold question here is whether or not the mandrels referenced in HQ H097658 and the mandrel referenced in HQ H251432 are classifiable under heading 8466.
It is clear from the description above that subject mandrels are in fact toolholders for handtools. In the cases under reconsideration the mandrels are the toolholders and the drill bits are the tools. Thus, we conclude that the subject mandrels are excluded from classification under heading 8207 by virtue of note 2 to chapter 82, HTSUS, and are properly classified under heading 8466, HTSUS. Specifically, they are properly classified under subheading 8466.10.01, which provides for “Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for the machines; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads:...”
HOLDING:
By application of GRIs 1 and 6, the subject mandrels are properly classified under heading 8466, HTSUS, and specifically under subheading 8466.10.01, which provides for “Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for the machines; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads:...” The general column one rate of duty, for merchandise classified under this subheading is 3.9%.
However, we again note that the classification of the subject merchandise does not change the outcome of HQ H097658 and of HQ H251432. HQ H097658 properly classified a bi-metal hole saw kit including mandrels under subheading 8202.99.00, HTSUS. HQ H251432 properly classified the Newell Rubbermaid Metal/Wood Door Kit and Wood Door Kit under subheading 8202.99.00, HTSUS.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
HQ H097658 (December 31, 2013) is hereby MODIFIED only with respect to the statement regarding the tariff classification of stand-alone mandrels.
HQ H251432 (October 20, 2016) is hereby MODIFIED only with respect to the statement regarding the tariff classification of a stand-alone mandrel.
Pursuant to U.S. Note 20(b) to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8466.10.01, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, an importer must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8466.10.01, HTSUS, noted above, for products of China.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/ trade/remedies/301-certain-products-china respectively.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division