HQ 953095
APRIL 15 1993
CLA-2:CO:R:C:M 953095 JAS
Mr. Joseph B. Castellano
Rudolph Miles & Sons
P.O. Box 2489
Laredo, TX 78044-2489
RE: Steel Screws, Plastic Wall Anchors, Plastic Bag; Mounting
Hardware for Wall Thermometer; Sets, GRI 3(b), HTSUS
Dear Mr. Castellano:
In a letter dated December 9, 1992, on behalf of Lux
Products Corporation, you inquire as to the tariff classification
for an installation kit for use in mounting a household wall
thermostat. A sample was submitted. Our Value and Marking
Branch will issue a separate ruling on the country of origin
marking issue.
FACTS:
Under the facts presented, steel screws of Taiwanese origin
will be shipped to Mexico along with plastic wall anchors and
plastic bags of United States origin. In Mexico, four (4) screws
and two (2) wall anchors will be packaged in one plastic bag and
the bag sealed with tape. The packaged screws and wall anchors
will then be placed in U.S.-origin cardboard cartons to complete
an installation kit. Upon return to the United States, the
importer will place one installation kit in a box containing one
thermostat ready for retail sale.
ISSUE:
Whether the installation kit is a set for tariff purposes;
whether there is an allowance for the components of U.S. origin.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs). GRI 1 states in part
that for legal purposes, classification shall be determined - 2 -
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
provides, in part, 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
by appropriate substitution of terms, according to GRIs 1 through
5.
As to the first issue, General Rule of Interpretation (GRI)
3(b), Harmonized Tariff Schedule of the United States (HTSUS),
states in part that goods put up in sets for retail sale which
cannot be classified by reference to rule 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. For purposes of GRI 3(b), 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 in a manner
suitable for sale directly to users without repacking.
Two of the screws are type A slotted pan head steel tapping
screws of the type classifiable in subheading 7318.14.10, HTSUS,
a provision for self-tapping screws having shanks or threads with
a diameter of less than 6mm. The other two screws are slotted
pan head steel machine screws. Because they do not meet the size
requirements under the eo nomine provision for machine screws in
subheading 7318.15.40, they are classifiable in subheading
7318.15.60, HTSUS, as other screws having shanks or threads with
a diameter of less than 6mm. The two plastic wall anchors are
internally threaded. They line the holes in the wall and expand
as the tapping screws are screwed into them. The wall anchors
are classifiable in subheading 3926.90.90, HTSUS, as other
articles of plastics.
The packaged screws and wall anchors meet the requirements
for a set under GRI 3(b). However, it is our opinion that none
of the articles imparts the essential character to the set.
Therefore, under rule 3(c), made applicable at the subheading
level by rule 6, the set is classifiable in subheading
7318.15.60, the provision that occurs last in numerical order.
The rate of duty under this provision is 6.2 percent ad valorem.
As to the second issue, subheading 9801.00.10, HTSUS,
provides for the free entry of products of U.S. origin that are
exported and returned without having been advanced in value or
improved in condition by any means while abroad, provided the
documentary requirements of section 10.1, Customs Regulations,
are met. We have previously held that in the absence of an
alteration or change in the U.S.-origin articles, the mere - 3 -
repackaging of these articles abroad even for the purpose
of resale to the ultimate consumer, is not sufficient to preclude
the merchandise from being classified in subheading 9801.00.10.
See HQ 555577, dated June 19, 1990. In our opinion, the
described operations performed in Mexico are simple packaging
operations that do not advance in value or improve in condition
the U .S.-origin components. The U.S.-origin plastic bags and
cardboard cartons are also entitled to subheading 9801.00.10
treatment pursuant to HQ 731806, dated November 18, 1988.
HOLDING:
The installation kits, as described, are sets for tariff
purposes. Upon their return to the Customs territory from
Mexico, they are classifiable in subheading 7318.15.60, HTSUS,
dutiable at the rate of 6.2 percent ad valorem.
As the components in the set of U.S. origin, and the U.S.-
origin packaging materials, will not be advanced in value or
improved in condition as a result of the processing operations in
Mexico, these items qualify for the duty exemption under
subheading 9801.00.10, upon compliance with the documentary
requirements of section 10.1, Customs Regulations.
Sincerely,
John Durant, Director
Commercial Rulings Division