CLA-2-96:OT:RR:NC:N4:422
Mr. Nick Dean
Dean Ryan Enterprises Inc.
900 Greenbank Rd
Suite 618
Ottawa, ON K2J 4P6
Canada
RE: The tariff classification of a carpenter pencil with bubble vial level and ruler from China
Dear Mr. Dean:
In your undated letter that was received in this office on March 4, 2014, you requested a tariff classification ruling.
The submitted sample is a carpenter pencil. The item consists of a writing core of graphite that is encased in a rigid sheath that is made of 100% recycled plastic material and is flat on both sides, with rounded edges. The external surface of the sheath is green in color and printed on each of the two flat sides are the words “Chubby’s On The Level.”
The item features a “bubble vial” level in the center and a small magnet in the middle of one edge. Both flat sides are delineated with ruler measurements from 0 to 7 inches. The pencil is unsharpened and can be rendered usable by paring away the sheath at either or both ends to expose more writing core.
The pencil, the vial and the magnet are made in China and shipped to Canada as three separate pieces. The pencil is shipped from China with cutouts in the locations where the bubble vial and the magnet will ultimately be situated. All three pieces will be assembled into the finished item in Canada and then shipped to the United States.
This item is considered to be a composite good within the meaning of General Rule of Interpretation (GRI) 3. As the pencil is used and more of the sheath is pared away, more and more of the ruler delineations marked on the external surface of the sheath will gradually disappear, thereby rendering the ruler less and less useful. The bubble vial only measures approximately 1” in length by ¼” in width and will no longer be situated in the middle as the pencil is further reduced. The purpose of the magnet is merely to facilitate the attachment of the item to a metal surface such as a tool box, thereby minimizing the potential for loss of the item.
The item is marketed as a carpenter pencil and there is a graphite writing core that runs through the entire length of the item with the exception of the 1 inch long cutout that houses the bubble vial. Therefore, the ruler, bubble vial level and magnet perform subordinate roles and the carpenter pencil performs the primary role. Consequently, it is the opinion of this office that the carpenter pencil provides this item with the essential character within the meaning of GRI 3(b).
The applicable subheading for the carpenter pencil will be 9609.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for pencils and crayons, with leads encased in a rigid sheath. The rate of duty will be 14 cents per gross plus 4.3 percent 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 World Wide Web at http://www.usitc.gov/tata/hts/.
The pencils may be subject to antidumping duties. Written decisions regarding the scope of AD/CVD orders are issued by the Import Administration in the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection. You can contact them at http://www.trade.gov/ia/ (click on "Contact Us"). You may also write to them at the U.S. Department of Commerce, International Trade Administration, Office of Antidumping Compliance, 1401 Constitution Avenue NW, Washington, DC 20230. For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on "Antidumping and Countervailing Duty" on the lower right hand side under "Investigations"), and you can search AD/CVD deposit and liquidation messages using the AD/CVD Search tool at http://addcvd.cbp.gov.
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 Gary Kalus at (646) 733-3055.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division