CLA-RR:CTF:TCM 967400 IOR
TARIFF NO. 8204.20.00, 8466.10.80
Mr. John Carrier
Central Purchasing, Inc.
Import Operations Group
3491 Mission Oaks Blvd.
Camarillo, CA 93012
RE: Torque wrench; ratchet; tool set; screwdriver bit and socket set; modification of NY K82360
Dear Mr. Carrier:
This is in reference to New York Ruling Letter (NY) K82360, issued to you on January 15, 2004, by the National Commodity Specialist Division, regarding the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of two handtools and three handtool sets. We have reconsidered NY K82360 and have determined that the classification of the two handtools and two of the handtool sets is not correct.
In NY K82360, Customs and Border Protection (CBP) ruled that SKU 2696, a torque wrench, and SKU 40592, a ratchet, were classified in subheading 8204.20.00, HTSUS, as socket wrenches, with or without handles, drives, or extensions. SKU 04142, and 45785, tool sets, were classified in subheading 8207.90.60, HTSUS, which provides for interchangeable tools for handtools. Upon review, CBP has determined that the merchandise was erroneously classified in NY K82360. This ruling letter sets forth the correct classification determination.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)), 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 modification of NY K82360 was published on February 1, 2006, in the Customs Bulletin, Volume 40, Number 6. No comments were received in response to that notice.
FACTS:
SKU 40592 consists of a ratchet, ¼” drive, quick release, 5 ½” long. SKU 2696 consists of a torque wrench, ¼” drive, torque range 20 to 200 lbs., 10” long, in a molded plastic case. SKU 04142 consists of a 53 piece set containing a 3/8” drive with a 3/8 x ¼” adapter, 35 sockets, 6 allen hex keys, one 3” extension, 3 open end wrenches, one ratchet drive handle, and four screwdriver bits, all packed in a zippered toolholder with specific holders for each item. SKU 45785 consists of a 16 piece set containing one non-ratcheting drive handle with quick release, 2 Phillips head screwdriver bits, 2 slot head screwdriver bits, 6 star head screwdriver bits, one socket adapter, and a total of 9, ¼” drive sockets from 3/16” to ½” size, all in a plastic molded case.
ISSUE:
What is the correct classification of the subject merchandise?
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.
With respect to SKU 2696, the torque wrench, the HTSUS provisions under consideration are as follows:
8204 Hand-operated spanners and wrenches (including torque meter
wrenches but not including tap wrenches); socket wrenches, with or
without handles, drives or extensions; base metal parts thereof:
Hand-operated spanners and wrenches, and parts thereof:
8204.11.00 Nonadjustable, and parts thereof……………………
8204.12.00 Adjustable, and parts thereof………………………..
8204.20.00 Socket wrenches, with or without handles, drives and
extensions, and parts thereof………………………………..
8466 Parts and accessories suitable for use solely or principally with the
machines of headings 8456 to 8465, including work or tool holders,
self-opening dieheads, dividing heads and other special
attachments for machine tools; tool holders for any type of tool for
working in the hand:
8466.10 Tool holders and self-opening dieheads:
8466.10.80 Other……………………………………………………..
The legal text of heading 8204, HTSUS, includes torque meter wrenches among “hand-operated spanners and wrenches.” A torque meter wrench can be set to apply a specific torque on bolts, nuts and other fasteners. Torque can be measured in ounce-inches, pound-inches, pound-feet, as well as metric measure. The subject wrench performs the same function as a torque meter wrench, measuring the torque in pound-inches. Torque meter wrenches are used with sockets. The wrenching action on the nut or bolt is performed by the sockets.
Heading 8204, HTSUS, is in section XV, HTSUS. Note 1(f) to section XV, HTSUS provides that articles of section XVI are not covered in section XV. Heading 8466, HTSUS, is in section XVI, HTSUS. Note 1(k) to section XVI, HTSUS, provides that articles of chapter 82 are not covered in section XVI, HTSUS. Note 1 to Chapter 82, HTSUS, provides that, with certain exceptions not applicable here, “this chapter covers only articles with a blade, working edge, working surface or other working part of (a) Base metal; (b) Metal carbides or cermets; (c) Precious or semiprecious stones (natural, synthetic or reconstructed) on a support of base metal, metal carbide or cermet; or (d) Abrasive materials on a support of base metal, provided that the articles have cutting teeth, flutes, grooves or the like, of base metal, which retain their identity and function after the application of the abrasive.”
The predecessor provision to note 1 to Chapter 82, HTSUS (Schedule 6, part 3, subpart E headnote 1, Tariff Schedules of the United States (TSUS)) was the subject of the decision in Continental Arms Corp. v. United States, 65 Cust. Ct. 80 (1970). In Continental Arms, the classification under the Tariff Schedule of the United States (TSUS), of a “valvespot oiler” was at issue. In Continental Arms, the court considered what constitutes a working edge, surface or part, for the purpose of determining whether the oilers met the requirement of headnote 1. The court held that the term “working part” was used to refer to “that part of the tool which does work in relation to a workpiece or object external to the tool.” The Court found that the spout in the valvespout is a passive conduit and does not work on an external object, and is therefore not a “working part” of the oiler.
Decisions by the Customs Service and the courts interpreting nomenclature under the HTSUS' predecessor tariff code, the TSUS, are not deemed dispositive under the HTSUS. However, on a case-by-case basis, such decisions should be deemed instructive in interpreting the HTSUS, particularly where the nomenclature previously interpreted in those decisions remains unchanged and no dissimilar interpretation is required by the text of the HTS. Omnibus Trade and Competitiveness Act of 1988, Public Law 100-418, August 23, 1988, 102 Stat. 1107, 1147; H.R. Rep. No. 576, 100th Cong., 2d Sess. 549-550 (1988); 1988 U.S.C.C.A.N. 1547, 1582-1583. The Continental Arms decision pertained to legal text which is substantially unchanged in the HTSUS, and no dissimilar interpretation is required by the text of the HTSUS. Accordingly, we find the decision instructive for purposes of the application of Note 1 to Chapter 82, HTSUS.
The torque wrench in this case, does not include a socket or sockets, and as such cannot operate on a nut or bolt. Therefore, without the socket, the torque wrench in this case does not have a “working part” within the meaning of Note 1 to Chapter 82, and as such, although specifically named in the text of heading 8204, HTSUS, cannot be classified in Chapter 82, HTSUS. As the torque wrench is not an article of Chapter 82, it is not precluded from classification in section XVI.
In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes (ENs), although not dispositive nor legally binding, provide a commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to 84.66 (C) provide as follows, in pertinent part, with respect to tool holders for any type of tool for working in the hand:
The very wide range of parts and accessories classified here includes:
(1) Tool holders which hold, guide or operate the working tool and which permit the interchange of such tool-pieces. They are of varied types, e.g.:
…
This heading also includes tool holders for any type of tool
designed for operation in the hand.
We find that the torque meter wrench, without sockets, is described in heading 8466, as it is a tool holder for sockets, which are designed for hand operation. Based on the language of heading 8466, HTSUS, the torque wrench, SKU 2696, is classified in subheading 8466.10.80, HTSUS, as “[p]arts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads: Other.” The molded plastic case, is classifiable under subheading 8466.10.80, HTSUS, under GRI 5, if it is specially shaped or fitted to contain the torque wrench, suitable for long-term use and entered with the torque wrench. Otherwise the plastic case would be classified separately.
With respect to SKU 40592, ratchets have been consistently classified under heading 8466, HTSUS, which is set out above. Specifically, ratchets have been classified in subheading 8466.10.80, HTSUS, as tool holders. See e.g. Headquarters Ruling (HQ) 084551, dated August 9, 1989, HQ 089976, dated August 7, 1991, and HQ 964699, dated November 16, 2001. Although a ratchet is sometimes referred to as a “ratchet wrench” or “socket wrench,” similar to the torque wrench described above, a ratchet does not have a “working edge” within the meaning of Note 1 to Chapter 82, and is precluded from classification in Chapter 82. Therefore, the ratchet, SKU 40592, is classified in subheading 8466.10.80, HTSUS, as “[p]arts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads: Other.”
With respect to SKU 04142 and 45785, the tool sets were correctly classified as sets under GRI 3. The classification of goods put up in sets for retail sale is governed by GRI 3(b). GRI 3(b) provides, in relevant part, that goods put up for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. According to the ENs for GRI 3(b), “goods put up in sets for retail sale” refers to goods which “consist of at least two different articles which are, prima facie, classifiable in different headings;…consist of products or articles put up together to meet a particular need or carry out a specific activity; and… are put up in a manner suitable for sale directly to users without repacking”.
With respect to SKU 04142, the items contained in the set, if entered separately, would be, prima facie, classified, with the 3/8” drive and ratchet drive handle in subheading 8466.10.80, HTSUS, the adapter, 35 sockets and extension in subheading 8204.20.00, HTSUS, 6 hex keys and 3 open end wrenches in heading 8204.11.00, HTSUS, and four screwdriver bits in subheading 8207.90.60, HTSUS.
The factor or factors which determine essential character will vary with the goods. EN Rule 3(b)(VIII) lists as factors the nature of the material or component, their bulk, quantity, weight or value, and the role of a constituent material in relation to the use of the goods. There are more sockets than any other one article in the set, and numerous items in the set are for use with the sockets, such as the 3/8” drive, the adapter and the extension. In this case, the factors of bulk, quantity, and role of a constituent material, indicate that the essential character of the set, in SKU 04142, is given by the sockets, which are classified under subheading 8204.20.00, HTSUS, as “[h]and-operated spanners and wrenches (including torque meter wrenches but not including tap wrenches); socket wrenches, with or without handles, drives or extensions; base metal parts thereof: Socket wrenches, with or without handles, drives and extensions, and parts thereof.”
With respect to SKU 45785, the items contained in the set, if entered separately, would be, prime facie, classified, with the drive handle in subheading 8466.10.80, HTSUS, the 10 screwdriver bits in subheading 8207.90.60, HTSUS, and the socket adapter and 9 sockets in 8204.20.00, HTSUS. For tool sets with drive handles and sockets and screwdriver bits, CBP has consistently held that under GRI 3(b), the essential character of the set is imparted by the drive handle or ratchet, based on the role of the drive handle or ratchet in relation to the use of the goods. See e.g. HQ 084551, supra, HQ 089976, supra, and NY J85063, dated June 16, 2003. The drive handle is necessary for the use of the screwdriver bits, sockets, and adapter.
Therefore for the tool set, SKU 45785, the essential character is imparted by the drive handle, and it is classified under heading 8466, HTSUS, accordingly. Specifically the tool set, SKU 45785, is classified under subheading 8466.10.80, HTSUS, as “[p]arts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads: Other.”
The zippered toolholder with specific holders for SKU 04142, is, specially shaped or fitted to contain the tool set, and is suitable for long-term use. Provided that it is entered with SKU 04142, it is classifiable under subheading 8204.20.00, HTSUS, in accordance with GRI 5. The plastic molded case for SKU 45785, is classifiable under subheading 8466.10.80, HTSUS, under GRI 5, if it is specially shaped or fitted to contain the set with which it is sold, suitable for long-term use and entered with the set. Otherwise the zippered toolholder and plastic case would be classified separately.
HOLDING:
By application of GRI 1, the torque wrench, SKU 2696, and ratchet, SKU 40592, are classified in heading 8466, HTSUS, specifically 8466.10.8075, HTSUSA, which provides for: “[p]arts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads: Other…Other,” with a column one, general duty rate of 3.9% ad valorem.
By application of GRI 3(b), the tool set, SKU 04142 , is classified in heading 8204, HTSUS, specifically 8204.20.0000, HTSUSA, which provides for: “[h]and-operated spanners and wrenches (including torque meter wrenches but not including tap wrenches); socket wrenches, with or without handles, drives or extensions; base metal parts thereof: Socket wrenches, with or without handles, drives and extensions, and parts thereof.”
By application of GRI 3(b), the tool set, SKU 45785, is classified in heading 8466, HTSUS, specifically 8466.10.8075, HTSUSA, which provides for: “[p]arts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads: Other…Other,” with a column one, general duty rate of 3.9% ad valorem. 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 on the internet at www.usits.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY K82360, dated January 15, 2004, is modified with respect to the classification of SKU 2696, 40592, 04142 and 45785. The classification of the remaining item that is described in NY K82360 is unchanged.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division