OT:RR:CTF:EMAIN H330409 LCB
Jan de Beer
Frost Brown Todd LLC
250 West Main Street
Suite 2800
Lexington, Kentucky 40507-1749
RE: Modification of HQ H300804; Tariff classification of steel tie wire cartridges
Dear Mr. de Beer:
This ruling pertains to Headquarters Ruling Letter (“HQ”) H300804 (July 2, 2019), which concerned the classification of imported steel tie wire cartridges and the applicability of subheading 9802.00.50, Harmonized Tariff Schedule of the United States (“HTSUS”) to the subject merchandise. In HQ H300804, U.S. Customs and Border Protection (“CBP”) classified steel wire cartridges in subheading 8467.29.00, HTSUS, which provides for “Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof: With self-contained electric motor: Other.” We have since reviewed HQ H300804 and determined that the portion of the ruling pertaining to the classification of the steel tie wire cartridges under heading 8467, HTSUS, is in error. Accordingly, CBP is modifying HQ H300804 pursuant to the analysis set forth below.
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 H300804 was published on September 13, 2023, in Volume 57, Number 33, of the Customs Bulletin. No comments were received in response to this Notice.
FACTS:
The products at issue are steel tie wire cartridges consisting of either spools of black annealed wire (referenced as TW898 USA), or spools of polyester coated wire (referenced as TW898-PC USA) wrapped around black polypropylene cores. The cartridges do not resemble the typical packaging associated with wire products. Rather, they have a sprocket-like appearance and are specially molded into a unique design that allows them to properly fit inside the designated MAX USA Rebar Tying Tool (models RB518, RB398, and RB218) (hereinafter the “Rebar Tying Tool”). The Rebar Tying Tool is a battery-powered handheld power tool that incorporates a self-contained direct current (“DC”) motor. It is used to tie and secure concrete rebar by holding the crossed reinforcing bars and feeding, winding, cutting, and tying the steel tie wire in one action.
ISSUE:
Whether the steel wire cartridges are classified under heading 7217, HTSUS, as wire of iron or nonalloy steel, or heading 8467, HTSUS, as parts of tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor.
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRIs”). 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 based on GRI 1, and if the headings and Legal Notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
GRI 6 provides as follows:
For legal purposes, 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 and Chapter Notes also apply, unless the context otherwise requires.
In addition to the GRIs, in interpreting the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
Initially, we note that this ruling does not address the applicability of subheading 9802.00.50, and that the classification of the subject steel tie wire cartridges in heading 8467, HTSUS, is not in dispute. As such, applying GRI 6, supra, the HTSUS provisions under consideration in this ruling are as follows:
8467 Tools for working in the hand, pneumatic, hydraulic or with self-contained
electric or nonelectric motor, and parts thereof:
* * *
With self-contained electric motor:
8467.29.00 Other…
* * *
Other:
8467.99.01 Other…
Note 2 to Section XVI, which governs the classification of parts within Section XVI, provides, in pertinent part:
Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules:
Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 84.79 or 85.43) are to be classified with the machines of that kind or in heading 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 85.17 and 85.25 to 85.28 are to be classified in heading 85.17….
The Rebar Tying Tool (for which the instant steel tie wire cartridges are designed and used), is a handheld tool incorporating a self-contained electric motor. As such, it would be classified under subheading 8467.29.00, HTSUS, which provides for “Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor: Other: Other.” However, the instant steel wire cartridges are not themselves tools of heading 8467, HTSUS, but are rather moving parts incorporated into the Rebar Tying Tool.
The term “part” is not defined in the HTSUS. In the absence of a statutory definition, the courts have fashioned two distinct though not inconsistent tests for determining whether a particular item qualifies as a “part” for tariff classification purposes. The test articulated in United States v. Willoughby Camera Stores, Inc. requires a determination of whether the imported item is an “integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article.” Under the test articulated in United States v. Pompeo, a good is a “part” if it is “dedicated solely for use” with a particular article and, “when applied to that use … meets the Willoughby test.”
In Mita Copystar America v. United States, the court classified toner cartridges that were shaped to fit into specific electrostatic photocopiers as parts of such machines. The court based its decision on Note 2(b), Chapter 90, HTSUS, which provides for the classification of parts and accessories of articles of Chapter 90 and is substantively similar to Note 2, Section XVI, HTSUS, quoted above. In determining that the cartridges were parts of photocopiers, the court noted that the toner cartridges were sold with toner inside, remained with the toner throughout its use by the photocopier, served as the standard device for providing toner to the photocopier, and were not designed for reuse. Similarly, in New York Ruling Letter (NY) N308917 (January 24, 2020), CBP found that various parts of the Metabo Angle Grinder are classified in heading 8467, HTSUS, noting that the parts are “specifically and solely designed for use with” that machine.
In the present case, the subject steel tie wire cartridges meet the definition of “parts” as defined by the courts and applied by previous CBP rulings because they are integral to, and dedicated solely for use with, the Rebar Tying Tool. Similar to the articles at issue in Mita Copystar, the subject cartridges are sold with steel tie wire inside, remain with the steel tie wire throughout its use by the rebar tying tool, are the standard device for providing steel tie wire to the rebar tying tool, and are not designed for reuse. Furthermore, and similarly to the articles at issue in N308917, the steel tie wire cartridges are designed exclusively for use with the Rebar Tying Tool and are sold for use only with such tools, which could not function without these cartridges. As a result, we find that the subject articles are specially designed as part of certain rebar tying tools as to warrant classification with such machines.
We further note that the articles at issue are distinguishable from the monofilament at issue in New York Ruling Letter (NY) K81013 (December 30, 2003). In that ruling, cut-to-length monofilament imported in material lengths, either on ordinary packing spools or in a “donut” form, was classified as monofilament. While the subject cartridges contain steel tie wire wound on spools in material lengths, the similarities to the monofilament at issue in K81013 end there. In K81013, the material lengths of monofilament were placed either on non-descript generic spools or on no spools at all. In comparison, the steel tie wire in this case cannot be bought separately for use with the Rebar Tying Tool without it being contained in the cartridge. Furthermore, as discussed above, the cartridge itself is not a generic spool used to support wire but has a sprocket-like appearance and is specifically designed for exclusive use with the Rebar Tying Tool. Accordingly, because the subject articles do not fall under the scope of a single heading of Section XVI as goods unto themselves, per Note 2(a) to Section XVI, we find that they are properly classified under heading 8467, HTSUS, as parts of hand tools by operation of Note 2(b) to Section XVI.
Specifically, we find that the steel tie wire cartridges are classified in 8467.99.01, HTSUS, which provides for “Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof: Parts: Other.”
HOLDING:
By application of GRIs 1 (Note 2(b) to Section XVI) and 6, the steel tie wire cartridges at issue (referenced as TW 898 USA and TW898-PC) are classified in subheading 8467.99.01, HTSUS, which provides for “Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof: Parts: Other.” The column one general rate of duty is free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov.
EFFECT ON OTHER RULINGS:
HQ H300804 is hereby MODIFIED.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division