OT:RR:CTF:CPMM H293247 RGR
Mr. Greg Montgomery
Attorney-In-Fact
OEC Group
11960 Westline Industrial Drive
St. Louis, MO 63146
RE: Revocation of NY N239783; Tariff classification of hot max soapstone holder with soapstone
Dear Mr. Montgomery:
This letter is in reference to one ruling letter issued by U.S. Customs and Border Protection (“CBP”) concerning the classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of a hot max soapstone holder. Specifically, in New York Ruling Letter (“NY”) N239783, dated April 10, 2013, CBP classified a hot max soapstone holder in subheading 7116.20.40, HTSUS. We have reviewed NY N239783 and found it to be in error. For the reasons set forth below, we are revoking NY N239783.
Pursuant to 19 U.S.C. § 1625(c)(1), a notice was published in the Customs Bulletin, Volume 52, No. 18 on May 2, 2018, proposing to modify NY N239783, and any treatment accorded to substantially similar transactions. No comments were received in response to this notice.
FACTS:
In NY N239783, CBP described the merchandise as follows:
Model 22025 is the Hot Max Flat Soapstone Holder. The holder consists of a steel body, threaded collar that tightens the soapstone in place, and a pocket clip. In its imported condition there is a flat rectangular piece of soapstone housed within the holder. This item is used for marking metals and dark materials, and will not burn off even under extreme heat caused by welding and cutting.
ISSUE:
What is the proper classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of the hot max soapstone holder?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (“GRI”). 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.
The 2018 HTSUS provisions under consideration are as follows:
6802 Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 6801; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially colored granules, chippings and powder, of natural stone (including slate):
* * *
6815 Articles of stone or of other mineral substances (including carbon fibers, articles of carbon fibers and articles of peat), not elsewhere specified or included:
* * *
7116 Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed):
* * *
9017 Drawing, marking-out or mathematical calculating instruments (for example, drafting machines, pantographs, protractors, drawing sets, slide rules, disc calculators); instruments for measuring length, for use in the hand (for example, measuring roots and tapes, micrometers, calipers), not specified or included elsewhere in this chapter; parts and accessories thereof:
In understanding the language of the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System 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 Harmonized System at the international level. See T.D. 89-90, 54 Fed. Reg. 35127 (Aug. 23, 1989).
The General ENs to chapter 90 state that the chapter covers a wide variety of instruments that are used mainly for scientific purposes, for specialized technical or industrial purposes or for medical purposes. According to the General ENs to chapter 90, the chapter includes “instruments and apparatus designed for certain specifically defined uses (surveying, meteorology, drawing, calculating, etc.).” The General ENs also state that “[t]here are certain exceptions to the general rule that the instruments and apparatus of this Chapter are high precision types,” and provide a non-exhaustive list of examples. The ENs to heading 9017, HTSUS, indicate that, “[m]arking-out consists in marking construction lines, etc., on the surface of a part to be machined, sawn, etc.” and that marking-out instruments include “scribers.”
In NY N239783, the soapstone holder was classified in heading 7116, HTSUS, as “[a]rticles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed).” Prior to March 2012, the Annex to the ENs to chapter 71 listed soapstone (a variety of natural steatite) as a precious or semiprecious stone. Noting the discrepancy with the EN to heading 71.03, which excludes steatite from the heading as a semi-precious stone in favor of heading 68.02 in accordance with note 2 to chapter 68, the Harmonized System Committee (“HSC”) deleted the terms “soapstone” and “steatite” from the Annex to the ENs to chapter 71 identifying precious or semiprecious stone. Accordingly, articles of soapstone or steatite are not included in chapter 71.
Notwithstanding the change in the Annex to the ENs to chapter 71, we find that NY N239783 incorrectly classified the instant merchandise because it only examined the soapstone chalk inside the holder and did not account for the steel holder housing the soapstone. Thus, pursuant to GRI 1, we must determine under which heading the entire soapstone holder, which includes the soapstone chalk, is classified.
The purpose of a soapstone holder is to mark metals, wood or brick for measurements and to indicate where to cut, saw, paint, etc. for welding or other industrial purposes. Soapstone chalk can be used for marking metals during the welding process. To keep soapstone chalk intact and easier to use, welders utilize a soapstone holder to ensure that the soapstone will not break if dropped. A soapstone holder also prevents soapstone chalk from wearing down as the welder carries it around in his or her pocket. The instant merchandise is imported with a rectangular piece of soapstone housed within the holder as a complete item ready for use. Similar to the exemplars in the General ENs to chapter 90, the instant merchandise is used for technical or industrial purposes to mark metals, wood or brick for measurements and to indicate where to cut, saw, paint, etc. for welding or other industrial purposes. Moreover, like the exemplars in the General ENs to chapter 90, the soapstone holder is an instrument designed specifically for drawing and marking on metals and other materials for industrial uses such as welding and metal cutting. In particular, the instant merchandise is similar to the exemplars in the EN to heading 9017. “Marking-out” is described in the ENs to heading 9017 as “marking construction lines, etc., on the surface of a part to be machined, sawn, etc.” This is precisely how the soapstone holder with soapstone will be used to mark metals and other surfaces for cutting, sawing, measuring, etc. for industrial purposes. Moreover, the soapstone holder with soapstone serves the same purpose as a scriber, which is set forth as an exemplar in the EN to heading 9017. According to the Merriam-Webster Online Dictionary, a scriber is “a sharp-pointed tool for making marks and especially for marking off materials (such as wood or metal) to be cut.” Based on the foregoing, we find that the instant soapstone and holder is a marking-out instrument classified in heading 9017, HTSUS, which provides for “[d]rawing, marking-out or mathematical calculating instruments.”
HOLDING:
Pursuant to GRIs 1 and 6, the hot max soapstone holder in NY N239783 is classified in heading 9017, HTSUS, specifically in subheading 9017.20.8080, HTSUSA (Annotated), which provides for “[d]rawing, marking-out or mathematical calculating instruments (for example, drafting machines, pantographs, protractors, drawing sets, slide rules, disc calculators); instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, calipers), not specified or included elsewhere in this chapter; parts and accessories thereof: Other drawing, marking-out or mathematical calculating instruments: Other: Other.” The 2018 column one, general rate of duty is 4.6% 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 the internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N239783, dated April 10, 2013, is REVOKED.
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