CLA-2-73:RR:NC:1:118 I86799
Ms. Maria E. Celis
Neville Peterson LLP
80 Broad Street – 34th Floor
New York, New York 10004
RE: The tariff classification of anchor kits from Taiwan.
Dear Ms. Celis:
In your letter dated September 15, 2002, on behalf of Mechanical Plastics Corporation, Elmsford, NY, you requested a tariff classification ruling. Your samples will be returned to you as requested.
You have described your samples as follows:
102 piece anchor kit - consisting of 50 AF6( plastic ¼” anchors, 50 combo-head screws #10 x 1 ½” made of steel, 1 carbide tipped ¼” masonry drill bit, 1 #2 Phillips driver bit, and a heavy-duty plastic storage case.
88 piece anchor kit - consisting of 10 AF6( plastic ¼” alligator® anchors, 10 #10 x 1 ½” combo head screws, 10 AF8( 5/16” alligator® anchors, 10 #12 x 1 ¾” combo head screws, 10 TH® picture hook anchors, 10 #8 x 1 ½” combo head screws, 2 TK( setting keys, 4 BA( plastic 3/16” snaptoggle( anchors, 4 #10 combo head machine screws 3/16” x 2 ½”, 10 TB® hollow wall anchors, 10 #8 x 1 ½” combo head screws, and a heavy-duty plastic storage case.
You state that all of the plastic anchors as well as the steel part of the snaptoggles( are of United States origin. All other items in both samples are made of steel and are of Taiwanese origin.
The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of 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. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among those which equally merit consideration.
The screw/anchor kits are considered to be sets for tariff classification purposes. The screws and anchors function together to hang or secure heavy objects onto hollow surfaces such as drywall. The screws secure the object onto the surface, while the plastic anchors spread the force to diminish the chance that the screws will pull away from the drywall. One set includes plastic setting keys to open the Toggler anchors. The other set includes a drill bit and a driver bit. The setting keys and bits, though secondary in function to the screws and anchors, also contribute to the function of the set in hanging heavy objects onto hollow surfaces. The compartmented case organizes and stores the contents. This container is specially shaped or fitted to contain the components of the set and is of a kind normally sold therewith. Since no single component imparts the essential character, the sets will be classified in accordance with GRI 3(c). In these sets, the screws and the anchors equally merit consideration for determining essential character. The heading for the metal fasteners appears last in numerical order among the competing headings which equally merit consideration.
The applicable subheading for the 102 piece anchor kit will be 7318.14.1060, Harmonized Tariff Schedule of the United States (HTS), which provides for screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel: threaded articles: self-tapping screws: having shanks or threads with a diameter of less than 6 mm: other. The duty rate will be 6.2% ad valorem.
The applicable subheading for the 88 piece anchor kit will be 7318.19.0000, HTS, which provides for screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel: threaded articles: other. The duty rate will be 5.7% ad valorem.
You ask about the applicability of subheading 9801.00.10, HTS, to the plastic anchors, which you indicate are made in the United States. Subheading 9801.00.10, HTS, provides for the duty-free entry of U.S. products that are exported and returned without having been advanced in value or improved in condition by any means while abroad. The operation performed on the anchors consists merely of packaging them with foreign produced components. As the mere packaging of U.S. products with other products does not advance in value or improve in condition the U.S. product, the domestically produced plastic anchors will be eligible for the duty exemption available under HTS subheading 9801.00.10, HTS, provided the documentary requirements of section 10.1, Customs Regulations (19 C.F.R. §10.1), are met.
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 Kathy Campanelli at 646-733-3021.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division