OT:RR:CTF:EMAIN H319727 MFT
Mr. Simon Bouffard
SBFD Inc., Amarok
32 Rue Francois-Bertrand
Sainte-Catherine-de-la-Jacques-Cartier, QC G3N 3C8
Canada
RE: Classification and Country of Origin of Wood Repair Starter Kit
Dear Mr. Bouffard:
This letter is in response to your request dated October 5, 2020, for a binding ruling regarding the classification and country of origin of a wood repair starter kit. Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division (NCSD) for review. Our ruling is set forth below.
FACTS:
The wood repair starter kit consists of the following four items: a 120 VAC, 60 Hz, 300 W electric glue gun; wood putty sticks made of calcium carbonate, a hot melt adhesive, and color pigment; an aluminum cooling block; and a scraper made of steel and rubber. The electric glue gun has an interchangeable nozzle, a "stroke adjuster" for regulating the amount of putty the gun produces, a temperature dial, and a power switch. The electric glue gun can hold wood putty sticks 100 mm, 250 mm, and 300 mm in length. The electric glue gun plugs into an AC outlet and heats to a temperature ranging from 248F to 446F according to the setting selected on the temperature dial. When in use, the electric glue gun extrudes wood putty onto a damaged area of wood; the aluminum cooling block is then placed over the filled in area; finally, the scraper tool is used to remove any excess putty.
The electric glue gun is manufactured in Taiwan. The wood putty sticks, aluminum cooling block, and scraper are manufactured in Canada. All four items to the wood repair starter kit are packaged in Canada. No other items are added to the wood repair starter kit after importation into the United States.
ISSUES:
What is the proper classification of the subject merchandise under the Harmonized Tariff Schedule of the United States (HTSUS)? What is the country of origin of the subject merchandise for marking purposes?
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule 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 2 through 6 may then be applied in order.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. Although the ENs are not legally binding or dispositive, they provide commentary on the scope of each heading of the HTSUS and generally indicate the proper interpretation of these headings at the international level. See Treasury Decision (T.D.) 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989).
GRI 3(a) states that "the heading which provides the most specific description shall be preferred to headings providing a more general description." GRI 3(b) states, in pertinent part, that composite goods that cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component that gives them their essential character. 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 the competing headings that equally merit consideration.
Each component of the wood repair starter kit is prima facie classifiable under GRI 1 as follows:
1) The wood putty sticks are classifiable under heading 3506, HTSUS, which provides for, "Prepared glues and other prepared adhesives, not elsewhere specified or included; products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1 kg."
2) The electric glue gun is classifiable under heading 8467, HTSUS, which provides for, "Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof."
3) The scraper is classifiable under heading 8205, HTSUS, which provides for, "Handtools (including glass cutters) not elsewhere specified or included; blow torches and similar self-contained torches; vises, clamps and the like, other than accessories for and parts of machine tools or water-jet cutting machines; anvils; portable forges; hand- or pedal-operated grinding wheels with frameworks; base metal parts thereof."
4) The aluminum cooling block is classifiable under heading 7604, HTSUS, which provides for, "Aluminum bars, rods and profiles."
The subject merchandise constitutes a retail set. First, the contents of the wood repair starter kit consist of different articles that are prima facie classifiable under different headings. Second, the subject merchandise also consists of articles put up together to carry out the specific activity of repairing wood. Third, the submitted photographs demonstrate that the goods are put up in a manner suitable for sale directly to end users without repackaging. The wood repair starter kit therefore constitutes "goods put up in sets for retail sale" under GRI 3(b) and shall be classified as if it consisted of the material or component which gives it its essential character.
We find that the instant electric glue gun is the component that gives the wood repair starter kit its essential character. CBP previously found that a glue gun used in woodworking was the component that gave a certain set its essential character given the factors provided by the ENs to GRI 3(b). See Headquarters Ruling Letter (HQ) 950627 (dated March 30, 1992). Our finding in this case rests on similar reasoning as HQ 950627. First, the electric glue gun takes up the bulk of the wood repair starter kit's packaging. Second, the value of the electric glue gun exceeds that of every other item in the kit. Third, out of all the kit's components, the electric glue gun plays the primary role in the use of the wood repair starter kit. Given these three factors, the electric glue gun is the component which gives the wood repair starter kit its essential character for classification purposes. Therefore, as GRI 3(b) instructs, the wood repair starter kit shall be classified as if it consisted of the electric glue gun. Because the electric glue gun is classifiable under heading 8467, HTSUS, the wood repair starter kit is classifiable under heading 8467, HTSUS.
Thus, we hold that the wood repair starter kit is classifiable under subheading 8467.29.00, which provides for, "Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof: With self-contained electric motor: Other."
The marking statute, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. Part 134 of the Customs Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
Section 134.1(b) of the Customs Regulations (19 C.F.R. 134.1(b)) defines "country of origin" as follows:
"[T]he country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of this part; however, for a good of a North America Free Trade Agreement (NAFTA) country, the NAFTA Marking Rules determine the country of origin.
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 of the CBP Regulations (19 C.F.R. 102.11) sets forth the required hierarchy for determining the country of origin for a "good of a NAFTA country." Section 102.11(a) provides that "[t]he country of origin of a good is the country in which: (1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 12.20 and satisfies any other applicable requirements of that section, and all other requirements of these rules are satisfied." [?] Paragraph (a) is inapplicable because the goods in the wood repair starter kit are not wholly obtained or produced in one country, the kit is not produced exclusively from domestic materials, and each material in the kit does not undergo an applicable change in tariff classification. Specifically, 19 C.F.R. 102.17 provides, in relevant part:
A foreign material shall not be considered to have undergone an applicable change in tariff classification specified in 102.20 or 102.21 or to have met any other applicable requirements of those sections merely by reason of one or more of the following:
(c) Simple packing, repacking or retail packaging without more than minor processing;
Since section 102.11(b) provides that this section is not applicable for goods specifically described in the Harmonized System as a set or classified as a set pursuant to General Rule of Interpretation 3, reference is made to 19 CFR 102.11(c).
Section 102.11(c) provides as follows:
"Where the country of origin cannot be determined under paragraph (a) or (b) of this section and the good is specifically described in the Harmonized System as a set or mixture, or classified as a set, mixture, or composite good pursuant to General Rule of Interpretation 3, the country of origin of the good is the country or countries of origin of all materials that merit equal consideration for determining the essential character of the good."
We find that the materials that merit equal consideration of the wood repair starter kit are the electric glue gun, wood putty sticks, scraper, and aluminum cooling block. Each of the materials in the kit retain their independent functions and separate identities. Thus, pursuant to 19 U.S.C. 1304 and 102.11(c), all components of the wood repair starter kit must be individually marked with their country of origin provided such marking is visible through the packaging; alternatively, the packaging must identify the origin of each of the items as products of Taiwan and Canada.
HOLDING:
Based on the information provided, the wood repair starter kit is:
1) classifiable under subheading 8467.29.0090, which provides for: "Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof: With self-contained electric motor: Other: Other"; and
2) a product of Taiwan and Canada for country of origin marking purposes. Each item must be individually marked to indicate its own country of origin - the electric glue gun as a product of Taiwan and the wood putty sticks, scraper, and aluminum cooling block each as products of Canada.
Please note that 19 C.F.R. 177.9(b)(1) provides that "[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based."
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Gregory Connor, Chief
Electronics, Machinery, Automotive, and International Nomenclature Branch