CLA-2 OT:RR:CTF:CPM H280763 RGR
T. Randolph Ferguson
Sandler, Travis & Rosenberg
505 Sansome Street
Suite 1475
San Francisco, CA 94111
RE: Modification of NY E84374; Tariff classification of nut setters from Taiwan
Dear Mr. Ferguson:
This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered New York (“NY”) Ruling Letter E84374, dated July 8, 1999, regarding the classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of nut setters from Taiwan. The nut setters were classified under subheading 8207.90.6000, Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”), as “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: Other interchangeable tools, and parts thereof: Other: Other: Not suitable for cutting metal, and parts thereof: For handtools, and parts thereof.” After reviewing this ruling in its entirety, we believe that it is partially in error. For the reasons set forth below, we hereby modify NY E84374 with respect to the classification of nut setters. The classification determination in NY E84374 remains in effect with respect to insert bits.
Pursuant to 19 U.S.C. § 1625 (c)(1), a notice was published in the Customs Bulletin, Volume 51, No. 23, on June 7, 2017, proposing to modify NY E84374, and any treatment accorded to substantially identical transactions. No comments were received in response to this notice.
FACTS:
In NY E84374, we described the products as follows:
The Insert Bits for Phillips Screws and Nut Setters are made of steel and are designed to be fitted for and used with hand tools or power-driven hand tools. The Bits and Nut Setters are interchangeable tools that include those tools for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, tuning or screwdriving. The insert bits are approximately one-inch in length, and are designed to be used with hex shank or square recess Phillips screws. The Nut Setters come in three different lengths 1-1/8?, 1-3/4?, 2-9/16?. The Nut Setters are magnetized and can be snapped into a hand held or power-driven screw gun or can be used with drill chucks.
ISSUE:
Whether nut setters are classified under heading 8207, HTSUS, as “interchangeable tools for handtools” or under heading 8204, HTSUS, as “socket wrenches, with or without handles.”
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (“GRIs”). GRI 1 provides, in part, that “for legal purposes, classification shall be determined according to terms of the headings 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 in order.
In understanding the language of the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The HTSUS headings 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
8207: 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
GRI 3(a) provides, in relevant part, that when goods are prima facie classifiable under two or more headings, the heading which provides the most specific description shall be preferred to headings providing a more general description. EN (IV) to GRI 3(a) explains that: “in general it may be said that: (a) A description by name is more specific than a description by class” and “(b) If the goods answer to a description which more clearly identifies them, that description is more specific than one where identification is less complete."” Our courts have interpreted this so-called “rule of relative specificity” to mean that "we look to the provision with requirements that are more difficult to satisfy and that describe the article with the greatest degree of accuracy and certainty.” Orlando Food Corp. v. United States, 140 F.3d 1437, 1441 (Fed. Cir. 1998).
Generally, nut setters are interchangeable tools consisting of a design that fits over the head of hexagonal head fasteners. Dimensions of a nut setter also include the socket nose diameter. Socket wrenches are defined in the Dictionary of American Hand Tools: A Pictorial Synopsis (2002) as a “type of wrench that fits over the entire nut, thus providing an even torque and the largest gripping surface.” This publication further states that a socket wrench can also be called a “nut runner” or “nut wrench.” In addition, the Merriam-Webster Online Dictionary defines a socket wrench as “a tool that has a part which fits over the end of a bolt or nut and is used to turn it.” See http://www.m-w.com (last viewed on March 20, 2017). The nut setters in NY E84374 are designed to be fitted for and used with hand tools or power-driven hand tools but are also designed to be fitted over the head of a bolt, screw, or nut. As the nut setters can be described both as sockets without handles of heading 8204, HTSUS, and as hand tools of heading 8207, HTSUS, the issue is whether heading 8204 or heading 8207 provides a more narrow and specific description for the merchandise.
In HQ 964841, dated December 14, 2001, we determined that under GRI 3(a), heading 8204, HTSUS, provided a more narrow and specific description for the interchangeable sockets than did heading 8207, HTSUS. Thus, where nut setters are interchangeable hand tools, specifically sockets without handles, described in both headings, we find that the nut setters are correctly classified under the more narrow and specific description in heading 8204, HTSUS, pursuant to GRI 3(a).
In light of the foregoing, we find that the nut setters at issue are classified in heading 8204, HTSUS, and specifically provided for 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 extension; base metal parts thereof: Socket wrenches, with or without handles, drives and extensions, and parts thereof.” The 2017 column one general rate of duty is 9% ad valorem.
HOLDING:
Pursuant to GRIs 1 and 3(a), the nut setters are classified in heading 8204, HTSUS, and specifically provided for under subheading 8204.20.00, HTSUS, as “Hand-operated spanners and wrenches (including torque meter wrenches but not including tap wrenches); socket wrenches, with or without handles, drives or extension; base metal parts thereof: Socket wrenches, with or without handles, drives and extensions, and parts thereof.” The 2017 column one general rate of duty is 9% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompany duty rate are provided on the World Wide Web, at http://www.usitc.gov/tata.hts/.
EFFECT ON OTHER RULINGS:
NY E84374, dated July 8, 1999, is hereby MODIFIED as set forth above with respect to classification of the nut setters described therein, but the classification of the insert bits remains in effect.
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