CLA-2-85:OT:RR:NC:N1:102
Mr. David Soyka
Manager, Trade Compliance
Stanley Black & Decker
400 Executive Blvd. S
Southington, CT 06489
RE: The tariff classification of a magnetic sleeve from China and Vietnam
Dear Mr. Soyka:
In your letter dated June 10, 2019 you requested a tariff classification ruling.
The products in question are referred to as magnetic sleeves. The sleeves are cylindrical in shape and consist of a a circular magnet within either a plastic or metal housing that has an outer spring band. In use, the user slides a screwdriver or a screwdriver bit into one end of the sleeve and on the other end, a metal screw is inserted into the sintered neodymium-iron-boron magnet. Each sleeve’s function is to magnetically facilitate the installation of a screw.
In your submission, you suggest that the magnetic sleeves should be classified under subheading 8505.11.0070, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Permanent magnets and articles intended to become permanent magnets after magnetization: Of metal: Sintered neodymium-iron-boron. While we agree the sleeves are classified within heading 8505, we disagree at the subheading level.
The sleeves are design to magnetically hold and support a metal screw as it is being turned or worked into place by the screwdriver or screwdriver bit that is inserted into the sleeve. As such, the sleeves function as magnetic workholders. Magnetic workholders are specifically provided for by name in HTSUS subheading 8505.90.4000.
Thus, the applicable subheading for the magnetic sleeves will be 8505.90.4000, HTSUS, which provides for Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks,clamps and similar holding devices;electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; Other, including parts; Workholders and parts thereof. The rate of duty is Free.
In your letter, you mention that certain magnetic sleeves will be manufactured in China. Please note effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8505.90.4000, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8505.90.4000 HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division