CLA-2 R:C:M 957374 JAS
Mr. Richard Leroy
Spence Distributors, Ltd.
111 Omands Creek Blvd.
Winnipeg, Manitoba R2R 1W3
RE: DD 896769 Revoked; Bifurcated Rivets of Aluminum and Steel
in Plastic Box Inside Cardboard Sleeve; Nail Rivets, Blind
Rivets, Steel Rivets, Rivets and Washers, Heading 7318;
Sets, GRI 3(b), Essential Character
Dear Mr. Leroy:
In DD 896769, issued to you on dated May 3, 1994, the
District Director of Customs, Los Angeles, held that certain
aluminum and steel rivets and steel washers were classifiable in
subheading 7318.23.00, Harmonized Tariff Schedule of the United
States (HTSUS), as non-threaded articles of iron or steel:
rivets. We have reconsidered this ruling and now believe that it
is incorrect.
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 (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993),
notice of the proposed revocation of DD 896769 was published on
March 22, 1995, in the Customs Bulletin, Volume 29, Number 12.
FACTS:
The merchandise in issue is an assortment of nail rivets and
washers in a hard plastic case. The assortment consists of 1/8
and 3/8 inch diameter rivets, each in 5 sizes, and washers
corresponding to the respective diameters. The fasteners are so-
called blind rivets for applications where the installer has
access to only one side of the work. They consist of a headed
aluminum rivet portion mounted on a steel nail or mandrel, with
steel predominating by weight. The rivet portion is polished
after forming. In use, the shank of the rivet is inserted in a
hole drilled in the parts to be joined. When the mandrel is
withdrawn it deforms or upsets the headless end, causing the
rivet to be fixed in place and the mandrel to break off. An
index card identifying sizes of rivets and washers in each of the - 2 -
case's 12 compartments fits inside the top. The plastic case
slides inside a cardboard sleeve custom labeled with a business
name and address of the customer's choice.
The provisions under consideration are as follows:
7318 Screws, bolts, nuts, coach screws, screw
hooks, rivets, cotters, cotter pins, washers
(including spring washers) and similar
articles, of iron or steel:
Non-threaded articles:
7318.22.00 Other washers...Free
7318.23.00 Rivets...0.3 cents/kg.
* * * *
8308 ...; tubular or bifurcated rivets of base
metal:
8308.20 Tubular or bifurcated rivets::
8308.20.60 Other...3.8 percent
ISSUE:
Whether the assorted rivets and washers, packaged and
imported as described, are a set for tariff purposes; whether
heading 7318 or heading 8308 is the more specific provision.
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
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.
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the Harmonized system.
While not legally binding on the contracting parties, and
therefore not dispositive, the ENs provide a commentary on the
scope of each heading of the Harmonized System and are thus - 3 -
useful in ascertaining the classification of merchandise under
the System. Customs believes the notes should always be
consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23,
1989).
GRI 3(b), HTSUS, states in part that goods put up in sets
for retail sale shall be classified as if they consisted of the
component which gives them their essential character, insofar as
that criterion is applicable. Relevant ENs, at p. 4, state under
RULE 3 (X), that 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. The washers are provided
for in heading 7318 and the nail rivets in heading 8308. The
inside diameters of the washers correspond, respectively, to the
shanks of the 1/8 and 3/16 inch diameter rivets and serve to
increase the bearing surface of the head. This keeps the rivet
from going through the work when the mandrel is withdrawn. The
rivets and washers, together, perform a fastening or joining
function. The rivet assortment is offered for sale in the hard
plastic case inside the cardboard sleeve. The merchandise
qualifies as a "set" for tariff purposes whose essential
character is clearly imparted by the rivets as they do the actual
fastening or joining.
As to the classification of the rivets, the ENs, at p. 1029,
exclude from heading 7318 tubular or bifurcated rivets. These
are referred to heading 8308. The ENs, at p. 1124, include
within heading 8308 tubular or bifurcated rivets of all kinds.
That heading also covers break mandrel blind rivets, where during
the setting operation the mandrel is pulled into or against the
rivet body and breaks at or near the junction of the mandrel
shank and its upset end. The rivets in issue conform to this
description and are therefore encompassed by heading 8308.
HOLDING:
The rivet assortment is a good put up in sets for retail
sale. Under GRI 3(b), it is classifiable as tubular or
bifurcated rivets, in subheading 8308.20.60, HTSUS.
- 4 -
EFFECT ON OTHER RULINGS:
DD 896769, dated May 3, 1994, is revoked. In accordance
with section 625 this ruling will become effective 60 days after
its publication in the Customs Bulletin. Publication of rulings
or decisions pursuant to section 625 does not constitute a change
of practice or position in accordance with section 177.10(c)(1),
Customs Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division