CLA-2-73:OT:RR:NC:N1:113
Mr. Gill Eisenstein
GRI Engineering & Development, LLC
6700 Wildlife Way
Long Grove, IL 60047
RE: The tariff classification of a “Pulling Eye” and a repair kit from China
Dear Mr. Eisenstein:
In your letter dated June 24, 2019, you requested a tariff classification ruling.
The E96 “Pulling Eye” is said to work in conjunction with a hoist to pretension a guy wire during assembly to an anchor rod. The anchor rod has already been inserted into the ground. After pretensioning, the “Pulling Eye” is designed to be removed and re-used for the same purpose. The “Pulling Eye” is said to be a galvanized ductile iron casting.
The repair kit/item number C3031661 for the E96 “Pulling Eye” contains three components, i.e., an adapter bushing/a galvanized ductile iron casting, a standard nut/low carbon steel and a standard bolt/low carbon steel. These are components that wear out from normal use of the “Pulling Eye”. All three components are imported together packaged in a single retail package. There is no repacking involved.
In your letter, you propose classifying the ”Pulling Eye” under subheading 8431.10.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8425 … Of machinery of subheading 8425.11 or 8425.19. The “Pulling Eye” is in the nature of an accessory to the hoist rather than an integral part of the hoist. The language of heading 8431, HTSUS, does not encompass accessories, only parts. Thus, in the opinion of this office, classification under subheading 8431.10.0010, HTSUS, would not be appropriate.
Regarding the repair kit, General Rule of Interpretation (GRI) 1, HTSUS, states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3. GRI 3(a) states that the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. The repair kit, as described above, consists of at least two different articles that are, prima facie, classifiable in different headings. The articles are put together to carry out a specific function (i.e., the repair of the “Pulling Eye”) and are put up in a manner suitable for sale directly to the users without repacking. Therefore, the repair kit is within the term “goods put up in sets for retail sale.” GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component which gives them their essential character. In this instance, it is the opinion of this office that the adaptor imparts the essential character to the repair kit.
The applicable subheading for the “Pulling Eye” and the “Pulling Eye” repair kit will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, other, other…other. The rate of duty is 2.9 percent ad valorem.
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). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). 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 7326.90.8688, 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., 9903.88.03, in addition to subheading 7326.90.8688, 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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division