CLA-2 RR:CR:GC 966444 RSD
TARIFF NO. 8207.70.30
Behnam Dayanim, Esq.
Seth Silber, Esq.
Paul, Hastings, Janofsky & Walker LLP
1299 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2400
RE: HQ 962627 Modified; Router Bits
Dear Mr. Dayanim and Mr. Silber:
This is in regards to a request for a ruling dated February 4, 1999, that you submitted on behalf of Tycom Corporation. In response to this request, on September 2, 1999, Customs Headquarters issued HQ 962627, which was addressed to the Port Director in San Ysidro, California. In HQ 962627 Customs considered the eligibility of imported articles for the preferential duty treatment under the North American Free Trade Agreement (NAFTA), and ruled that certain router bits were classified in subheading 8207.50.20, of the Harmonized Tariff Schedule of the United States (HTSUS). Some of the printed circuit boards cutting tools were processed from rod blanks in Mexico into router bits. We now believe that the classification of the router bits indicated in HQ 962627 was incorrect. This ruling sets forth the correct classification of the router bits
FACTS:
The facts were set forth in HQ 962627. Tungsten carbide rods of Japanese origin, 1 1/2 or more inches in length, composed of 92% tungsten carbide and 8% cobalt, are imported into the U.S. After importation, the diameters of rods are reduced by grinding from 0.12850 inch to a prefinished diameter of 0.1250 inch, then finish ground to a final diameter of 0.12480 inch. These rods, now referred to in the printed circuit board manufacturing industry as cemented carbide endmill blanks, are ground on one end to achieve a uniform overall length of 1.505 inch, and a linear chamfer is ground onto the other end. The rod blanks are then exported to Mexico and completed there into routers and small-to-large diameter miniature drills for printed circuit boards by forming necks and 0.070-0.440 inch fluted drill ends on the rod blanks’ nonchamfered ends and, finally, press fitting a plastic ring at the base of the neck, presumably to facilitate handling. Although HQ 962627 described the subject articles as routers, we believe they that are router bits.
ISSUE:
Whether the router bits are classified as milling tools in subheading 8207.70.30 or drilling tools of subheading 8207.50.20, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is made 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 on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and mutatis mutandis, to the GRIs.
The HTSUS provisions under consideration are as follows:
* * * *
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
* * * * *
8207.70 Tools for milling, and parts thereof:
8207.70.30 With cutting part containing by weight over 0.2
percent of chromium, molybdenum, or tungsten
or over 0.1 percent of vanadium
* * * * * *
In HQ 966199, dated April 18, 2003, Customs Headquarters examined how router bits should be classified. We pointed out that heading 8207, HTSUS, covers, among other things, interchangeable tools for handtools or for machine-tools. We noted that goods of heading 8207, HTSUS, are excluded from headings 8465 and 8466, HTSUS, by Section XVI, Note 1(o), HTSUS.
EN 82.07 states in relevant part that for this heading:
Whereas (apart from a few exceptions such as machine saw blades) the preceding headings of this Chapter apply in the main to hand tools ready for use as they stand or after affixing handles, this heading covers an important group of tools which are unsuitable for use independently, but are designed to be fitted, as the case may be, into (emphasis in original):
* * * (B) machine-tools, of headings 84.57 to 84.65, or of heading 84.79 by reason of Note 7 to Chapter 84,
(C) tools of headings 84.67,
for pressing, stamping, punching, tapping, threading, drilling, boring, reaming, broaching, milling, gear-cutting, turning, cutting, morticing or drawing, etc., metals, metal carbides, wood, stone, ebonite, certain plastics or other hard materials, or for screwdriving.
We determined that because the router bits at issue, were for use in machine-tools of heading 8465, HTSUS, they met this description (i.e., tools which are incapable of use independently but are designed to be fit into machine-tools of heading 8465, HTSUS). Thus, the router bits, fell under heading 8207, HTSUS. Consequently, the question that had to be decided was under what subheading within heading 8207, HTSUS, were the router bits classified.
In determining the correct classification for the router bits, we pointed out that in cases involving interchangeable tools, such as the instant case, Customs examines the overall design features of an article to determine its primary function or use. In these instances, the article itself indicates prima facie evidence of the use of the class or kind of good to which it belongs.
The router bits that were the subject of HQ 966199 appeared to be used for routing. Information available in the case indicated that the router bits were of a shank type design with a rotary cutting face, and cutting edges which intermittently engage the workpiece, and which remove material by relative movement of the workpiece and the cutter, similar to the router bits in this case. Such tools are designed to shape, finish, dress or contour surfaces, which are indicative of tools used for milling, (i.e., to shape or finish by means of a mill or machine). The design of the router bits strongly suggested that they performed a milling function to shape or finish the workpiece. In an effort to determine the principal use of the router bits, Customs communicated with several tool industry representatives as well as searched Internet sources. These sources indicated that router bits perform routing, which is a type of milling, and that router bits used in metal working and in manufacturing PCBs are similar. Based on an examination of the information that was in contained in the record, as well as information from the industry, we concluded that the router bits belong to the class or kind of interchangeable tools for machine-tools principally used as tools for milling, of subheading 8207.70.30, HTSUS.
In HQ 966199 the router bits were used on router machines and were utilized in the manufacture of PCBs. We determined that the router bits were properly classified under subheading 8207.70.30, HTSUS, as tools for milling. Therefore, the subject router bits are classified in subheading 8207.70.30, HTSUS. The remainder of the analysis set forth HQ 962627, regarding the classification of drills and the eligibility of the imported articles for NAFTA, is unaffected.
HOLDING:
Under the authority of GRI 1, the router bits are provided for in heading 8207, HTSUS. Through application of GRI 6, the router bits are classified under subheading 8207.70.30, HTSUS, as "Interchangeable tools for . . . machine tools; Tools for milling, and parts thereof: Wth cutting part containing by weight over 0.2 percent of chromium, molybdenum, or tungsten or over 0.1 percent of vanadium."
EFFECT ON OTHER RULINGS:
HQ 962627 dated September 5, 1999 is modified with respect to the router bits.
Sincerely,
Myles B. Harmon Director, Commercial Rulings Division