CLA-2 CO:R:C:G: 084717
Mr. Troy E. Clark
President, CBT International Inc.
936 Mahar Avenue
Wilmington, California 90744
RE: Steel Tool Box/Cabinet, and Tool/Supply Assortment
Dear Mr. Clark:
Your letter of February 3, 1989, regarding the tariff
classification under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), of the above referenced items
imported from Taiwan and/or Hong Kong, has been referred to this
office for a ruling. A sample of the tool assortment and tool
box/storage cabinet was included with your inquiry.
FACTS:
The subject merchandise consists of the following items:
(1) a steel tool and supply storage box/cabinet with a carrying
handle, latch closures, top and bottom storage areas, and 18
pull-out plastic drawers; (2) 1 roll of electrical tape;
(3) 2 electrical testing tools; (4) 1 electrical stripper plier;
(5) 1 needle nose plier; (6) 1 flat tip screwdriver; (7) 1 cross
tip screwdriver; (8) 1 wire cutter plier; (9) 1 utility knife;
(10) an assortment of electrical connectors; (11) plastic
electrical wire ties; and (12) 2 alligator clips. The importer
expects the cabinet and assortment to be sold in hardware and
electrical supply stores, and presumes it will be used by
homeowners and hobbyists.
ISSUE:
Whether the tool box/cabinet, tool and electrical connector
assortments are considered a set for tariff purposes;
and, if considered a set, which item gives it its essential
character; and, if not a set, how are the items properly
classified.
LAW & ANALYSIS:
The General Rules for the Interpretation of the Harmonized
System (GRI's) govern classification under the Harmonized Tariff
Schedule. According to GRI 1, the primary consideration in
determining whether merchandise should be classified in a heading
should be given to the language of the heading and any relevant
chapter or section notes, and, provided such headings or notes do
not otherwise require, according to the remaining GRI's, taken in
order.
Here, the first question to be considered is whether a
heading exists which covers the tool box/cabinet, tools and
connector assortment together. Because no heading, by itself,
covers the subject merchandise, classification cannot be
determined by applying GRI 1 alone. Therefore, reference to the
subsequent GRI's is necessary. GRI 2 is not applicable here.
GRI 3, however, is relevant. It provides, in pertinent part:
3. When, by application of Rule 2(b) or for any other
reason, goods are, prima facia, classifiable under
two or more headings, classification shall be
effected as follows:
(a) 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.
(b) 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.
The Explanatory Notes to the HTSUSA constitute the official
interpretation of the tariff at the international level. The
Explanatory Note to GRI 3(b) provides further guidance in
determining essential character, and in determining what
constitutes a "set". The relevant note states, in part:
(VIII) 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.
(X) For the purposes of this Rule, 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 case, at least two of the above "set" criteria are
clearly satisfied. First, the subject merchandise consists of at
least two different articles which are prima facie classifiable
in different headings. Secondly, the items are put up in a
manner suitable for sale directly to users without repacking.
The third criterion, that the goods consist of articles put up
together to meet a particular need or carry out a specific
activity, also appears to be satisfied. The tool and connector
assortments can be utilized together to perform a variety of
electrical work. The tool box/cabinet provides convenient
storage for the electrician/mechanic. The latching feature and
the handle, allow an individual to carry the tool box anywhere
he or she may require the use of its contents, whether it be
within the home or elsewhere. It is apparent that the subject
articles are put up together to meet a particular need and carry
out a specific activity. That activity consists of
electrical/mechanical work. Accordingly, the subject merchandise
constitutes a set pursuant to the Explanatory Notes to GRI 3(b).
The next issue to be resolved is which item within the set
gives it its essential character. Pursuant to GRI 3(b),
classification of the set is based upon the classification
of the item which imparts the set's essential character.
The factor or factors which determine essential character
will vary with the goods. However, the nature of a component and
its relation to the use of the goods are often factors to be
considered. In this case, the tool box/cabinet provides storage
for the tools and connector components, and is designed to be
used with them. Its closure latches and handle allow it to be
carried on the person, to wherever the job requires. Excess
space exists in the box to enable the user to add extra tools.
In addition, the box's bulk and weight clearly exceeds the bulk
and weight of the other components. Taking into consideration
all of the factors enumerated in Explanatory Note (VIII)
concerning GRI 3(b) (set forth above), the essential character of
the set at issue is imparted by the metal tool box/cabinet.
The final issue requiring resolution is determining how the
tool box/cabinet is classified. Heading 4202, HTSUSA, provides
for trunks, suitcases, vanity cases, attache cases, briefcases,
school satchels and similar containers (emphasis added).
A previous ruling issued by this office on June 30, 1989,
Headquarters Ruling Letter (HRL) 083005, classified steel tool
boxes under subheading 4202.19.0000, HTSUSA. Customs concluded
that steel tool boxes of a type designed to be carried with the
person, whether in or about the home, or by professional and non-
professional persons, are containers similar to trunks,
suitcases, vanity cases and other articles listed under Heading
4202. Accordingly, the tool boxes at issue in HRL 083005 were
classified under 4202.19.0000, HTSUSA, rather than under
7326.90.9090, HTSUSA, the provision for other articles of iron or
steel. As recognized in HRL 083005, articles of Heading 4202,
HTSUSA, are excluded from classification under heading 7326,
HTSUSA, by virtue of Explanatory Note (a) to Heading 7326.
The language in the first part of Heading 4202, "and similar
containers," is a phrase which was interpreted by the Court of
International Trade under the Tariff Schedules of the United
States. It has yet to be interpreted by the courts under the
HTSUSA. Nevertheless, the court's logic is clearly applicable
here in light of the similarities between the relevant TSUS and
HTSUSA headings. In DRI Industries, Inc. v. United States, 657
F. Supp. 528 (CIT 1987), aff'd, 832 F.2d 155 (Fed. Cir. 1987),
the court ruled that a tool chest designed to store and organize
tools and also to be carried with the person from place to place
was properly classifiable as luggage for tariff purposes. In
determining that the tool box was ejusdem generis with the
exemplars listed in Schedule 7, Part 1, Subpart D, Headnote
2(a)(ii), TSUS, the court observed:
The exemplars listed in 2 (a)(ii) represent a
category of containers or cases which are designed
to store, organize and protect those contents from
which the containers derive their name.
Although the DRI Industries case was decided under a
different tariff, its interpretation of the Schedule 7, Section
2, Subpart D, Headnote 2 (a)(ii), TSUS phrase, "and like
containers and cases designed to be carried with the person," is
applicable to our interpretation of the phrase, "and similar
containers," found in Heading 4202, HTSUSA. The rationale
applied in DRI Industries is relevant here, as it was in HRL
083005. No restriction concerning the materials comprising the
container exists in the first part of Heading 4202. The tool box
at issue here is a container with characteristics similar to the
enumerated articles in the first part of Heading 4202, HTSUSA,
and therefore, is classifiable there.
Subheading 4202.19, HTSUSA, provides for trunks, suitcases,
vanity cases, attache cases, briefcases, school satchels, and
similar containers, of other materials. Subheading 4202.99,
HTSUSA, provides for other containers not covered by the previous
subheadings of 4202.
We find it significant that subheading 4202.19 omits
spectacle cases, binocular cases, camera cases, musical
instrument cases, gun cases, and holsters, which are also
provided for in the first segment of Heading 4202. We also note
that musical instrument cases, listed with the above omissions,
are separately provided for in subheading 4202.92.5000, not as an
article similar to those of subheading 4202.19, but as "other."
Accordingly, we are of the opinion that the "similar
containers" language of subheadings 4202.11 through 4202.19,
HTSUSA, was not intended to be the catch-all phrase for those
articles enumerated in the first part of Heading 4202. Rather,
articles similar to those containers listed in the first part of
4202, but not listed in the text of 4202.11 through 4202.19, are
included within subheading 4202.99.0000, HTSUSA. As a result of
this position, the subject tool box/cabinet is classified under
subheading 4202.99.0000, HTSUSA, as containers similar to those
enumerated in the first part of Heading 4202, not more
specifically provided for in other headings of Chapter 42.
HOLDING:
The tool box/cabinet and tool and connector assortments are,
for tariff purposes, considered to be a set. The tool
box/cabinet imparts the set's essential character, and is
classifiable under subheading 4202.99.0000, HTSUSA. The set,
therefore, is classifiable under subheading 4202.99.0000, HTSUSA.
The applicable rate of duty is 20 percent ad valorem.
All previous rulings inconsistent with this result are
hereby modified accordingly.
Sincerely,
John Durant, Director
Commercial Rulings Division