Customs Ruling HQ H322527 - Request for Internal Advice; classification of chainsaw guide bar; classification of chainsaw guide bar and chainsaw blade put up as a set for retail sale

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HQ H322527
Jun 07, 2023

Type : Classification • HTSUS : 8202.40.60; 8467.91.01

OT:RR:CTF:EMAIN H322527 SKK

TARIFF NOs.: 8202.40.60; 8467.91.01

Center Director
Center of Excellence and Expertise - Machinery
U.S. Customs and Border Protection
109 Shiloh Drive, Suite 300
Laredo, TX 78045

ATTN: Jeremy Olson, Supervisory Import Specialist; Heidi Olsonawski, Import Specialist

RE: Request for Internal Advice; classification of chainsaw guide bar; classification of chainsaw guide bar and chainsaw blade put up as a set for retail sale

Dear Center Director: This letter is in response to your request for Internal Advice (IA), dated December 20, 2021, made pursuant to §177.11 of Title 19 of the Code of Federal Regulations (19 CFR 177.11). The IA request was initiated by Counsel on behalf of Oregon Tool Inc. (Oregon Tool) and concerns the tariff classification under the Harmonized Tariff System of the United States (HTSUS) of two articles, described as chainsaw “guide bars” and chainsaw “guide bar and chainsaw blade combinations.” On February 22, 2023, attorneys from this office participated in a teleconference with Counsel and a representative from Oregon Tool in which additional arguments were provided for CBP’s consideration. This IA takes into consideration the arguments presented in both the written and oral submissions. No samples were submitted to this office for examination.

The subject chainsaw guide bars were entered under heading 8467, HTSUS, specifically subheading 8467.91.01, HTSUS, which provides for “[T]ools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof: Parts: Of chain saws.” The guide bars were liquidated as a rate advance under heading 8466.10.01, HTSUS, which provides for “[P]arts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for the machines; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads.”

The guide bar and chainsaw blade combination was also entered under subheading 8467.91.01, HTSUS, and remains unliquidated pending decision on this IA.

FACTS:

Two products are at issue in this IA. The first is described as a chainsaw guide bar. The second is a chainsaw guide bar packaged with a chainsaw blade.

A chainsaw guide bar is a metal bar around which a chainsaw blade spins. The guide bar holds the chainsaw blade in place and keeps it straight while cutting. Guide bars are offered in various lengths and may have other variations. Guide bars are designed to fit specific chainsaw blades of various configurations of pitch, gauge, cutter material, cutter style and chain arrangement. Guide bars and chainsaw blades are replaceable components of chainsaws. Guide bars and chainsaw blades are sold individually and as sets.

Counsel submits that the subject guide bar is of greater bulk, weight and value than the subject chainsaw blade.

Figure 1 Figure 2

Figure 1 depicts the guide bar and chainsaw blade combination in its condition as imported and sold at retail. Figure 2 depicts the guide bar alone.

Figure 3 Figure 3 describes the different types of chain blades that can be used on a guide bar. The pitch and gauge are predetermined by the chainsaw and guide bar. A user can choose from cutter material, cutter style, and chain arrangement. Figure 4

Figure 4 depicts a complete Oregon Tool chainsaw.

Figure 5 Figure 5 depicts the guide bar and chainsaw blade installed onto the body of a chainsaw.

ISSUES: Whether the chainsaw guide bar, imported alone without the chainsaw blade, is classifiable as a holder for hand tools under subheading 8466.10.01, HTSUS, or as a chainsaw part under subheading 8467.91.01, HTSUS?

What is the proper classification of the chainsaw guide bar and chainsaw blade combination when put up as a set for retail sale?

LAW AND ANALYSIS: Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If 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. GRI 6 provides that the classification of goods in the subheadings of a heading is determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to GRIs 1 through 5.

The HTSUS provisions at issue are as follows:

8202: Handsaws, and metal parts thereof; blades for saws of all kinds (including slitting, slotting or toothless saw blades), and base metal parts thereof: 8202.40 Chain saw blades, and parts thereof: 8202.40.60 Other… * * * * *

8466: Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for the machines; tool holders for any type of tool for working in the hand: 8466.10.01 Tool holders and self-opening dieheads… * * * * * 8467: Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof: 8467.91 Parts: 8467.91.01 Of chain saws…

Note 2(b) to Section XVI, HTSUS, provides:

2. Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: * * * * * (b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517.

The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The ENs to heading 84.66 state, in pertinent part:

The very wide range of parts and accessories classified here includes:

(1) Tool holders which hold, guide or operate the working tool and which permit the interchange of such tool-pieces. They are of very varied types, e.g.: With the exception of the tools of Chapter 82 and subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), this heading covers: * * * * * (C) Tool holders for any type of tool for working in the hand.

Chucks; tap and drill collets; lathe tool posts; self-opening dieheads; grinding wheel holders; honing bodies for use in honing machines; boring bars; turrets for turret lathes, etc.

This heading also includes tool holders for any type of tool designed for operation in the hand. Such holders are usually designed for the tools of heading 82.05 or 84.67, but this heading also includes tool holders for flexible shaft outfits. (See also the provisions of the Explanatory Notes to headings 84.67 and 85.01). * * * * * The ENs to heading 84.67 state, in pertinent part:

This heading covers tools which incorporate an electric motor, …. * * * * * The heading covers such tools only if for working in the hand. * * * * * The tools of this heading include tools for working various materials and are used in various industries.

Subject to the conditions above, the tools of this heading include, inter alia : * * * * * (7) Circular saws, chain saws and the like. * * * * * PARTS

Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), the heading also covers parts (other than tool holders of heading 84.66) of the tools of this heading. CBP liquidated the subject guide bars (imported without the chainsaw blade) under subheading 8466.10.01, HTSUS, as holders for handheld tools.

The guide bar and guide bar/chainsaw blade combinations were entered under subheading 8467.91.01, HTSUS, as parts of chainsaws, and remain unliquidated.

Counsel submits that both the subject guide bars and guide bar/chainsaw blade combinations are properly classified as entered under subheading 8467.91.01, HTSUS, as chainsaw parts. Counsel’s analysis for each product is set forth below.

Chainsaw guide bar (imported without the chainsaw blade)

Counsel maintains that as the subject chainsaw guide bar does not hold or guide a handheld tool, it falls outside the scope of heading 8466, HTSUS. Counsel argues that a guide bar holds and guides a chainsaw blade, which is not a handheld tool but rather eo nomine classified under subheading 8202.40, HTSUS. Counsel further posits that a chainsaw, in its entirety, is a handheld tool classified under heading 8467, HTSUS, and its “holder” would be the handle and body to which a guide bar and chainsaw blade attach. Lastly, Counsel views the exemplars in EN 84.66 as inconsistent with the use and function of a chainsaw guide bar. In this regard, Counsel argues that the listed exemplars are all integral to the operation of the tool and serve as a grip or vice. Conversely, the subject guide bar is not a handle, gripper, or extender and does not guide or operate a working tool.

Counsel considers the subject guide bar as classified as a chainsaw part under subheading 8467.91.01, HTSUS, by application of Section XVI Note 2(b). In support of this argument, Counsel describes the guide bar as a necessary and integral component of a chainsaw that provides structure and support for the chain blade component, without which the chain saw could not perform its cutting function. Counsel notes that the subject guide bar is specifically shaped and dedicated for use in a chain saw and is neither a part of general use or provided for more specifically in another tariff provision.

Chainsaw bar guide/chainsaw blade combination

Counsel maintains that as both guide bars and chainsaw blades are offered for sale separately, as well as combined, they do not meet the definition of composite goods. Rather, they are goods put up as sets for retail sale and, as such, classification is determined by application of GRI 3. Counsel argues that GRI 3(b) is not determinative of classification in the instant matter as neither the guide bar (heading 8467, HTSUS) nor the chainsaw blade (heading 8202, HTSUS) impart the essential character to the set. In this regard, Counsel submits that both components are specific to and reliant on the other, and both are required for the chainsaw to perform its cutting action. The guide bar provides the necessary structure for the chain blade to cut and is also of greater bulk, weight, and value than the chain blade. Each component wears with use and is replaceable. As such, Counsel argues that classification of the set is proper under heading 8467, by application of GRI 3(c), as that is the heading that occurs last in numerical order as regards the applicable tariff provisions. In the teleconference held on February 22, 2023, Counsel alternatively argued that the guide bar component imparted the essential character to the set and classification was therefore appropriate in subheading 8467 by application of GRI 3(b). In this regard, Counsel noted that guide bars are not generally sold separately at retail and are only offered as a set with a blade to ensure that the guide bar and chain fit together properly.

The subject chainsaw guide bar (imported without the chainsaw blade) is classified under subheading 8467.91.01, HTSUS, by application of Section XVI Note 2(b). The guide bar holds and guides a chainsaw blade; it does not hold or guide the chainsaw itself. Chainsaw blades are classified in subheading 8202.40, HTSUS, and are not handheld tools. As the guide bar does not hold or guide a handheld tool, it is not classified under heading 8466, HTSUS. The subject guide bar is specifically shaped and dedicated for use in a chainsaw and is neither a part of general use nor provided for more specifically in another tariff provision. The guide bar is an integral component of a chainsaw, without which the chainsaw could not perform its intended function of cutting. Therefore, it is as a chainsaw part under subheading 8467.91.01, HTSUS.

The subject guide bar and chainsaw blade are two different articles that are prima facie classifiable in HTSUS headings 8202 and 8467. The articles are put up together to carry out the specific function of cutting and are suitable for sale directly to end users without repacking. See EN(X) to GRI 3(b). As such the subject guide bar/chainsaw blade combinations are goods put up in sets for retail sale and classification is determined in accordance with GRI 3, which states in pertinent part:

When by application of Rule 2 (b) or for any other reason, goods are prima facie, classifiable under two or more headings, classification shall be effected as follows: * * * * * (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

(c) When goods cannot be classified by reference to 3 (a) or 3 (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

GRI 3(b) provides that goods put up as sets for retail sale, which cannot be classified by GRI 3(a), are classified as if they consist of the material or component that gives them their essential character, insofar as this criterion is applicable. It is well-established that a determination as to “essential character” is driven by the particular facts of the case at hand. See, e.g., Alcan Food Packaging (Shelbyville) v. United States, 771 F.3d 1364, 1366 (Fed. Cir. 2014) (“The ‘essential character’ of merchandise is a fact-intensive issue.”); see also EN VIII to GRI 3(b) (“The factor which determines essential character will vary as between different kinds of goods.”). That said, essential character has traditionally been understood as “that which is indispensable to the structure, core or condition of the article, i.e., what it is” and as “the most outstanding and distinctive characteristic of the article.” Structural Indus. v. United States, 360 F. Supp. 2d 1330, 1336 (Ct. Int’l Trade 2005).

In the instant case, the chainsaw blade constitutes the working end of a chainsaw and is the component that performs the chainsaw’s sole and intended function of cutting. The fact that the chainsaw blade requires the structure of the guide bar to function, and is also of lesser bulk, weight and value than the guide bar, does not negate its greater significance in relation to the use of the goods. GRI 3(b) does not require that a component must function independently for it to impart the essential character to a set. Rather, GRI 3(b) requires an examination of a good’s physical attributes or its role in relation to the good’s use. In this case, the set is intended to provide cutting functionality and, as between the guide bar and the chainsaw blade, it is the latter that specifically performs the cutting function and imparts the essential character. Accordingly, the guide bar/chainsaw blade set is classified under subheading 8202.40.60, HTSUS, which provides for, in pertinent part, chain saw blades, by application of GRI 3(b).

HOLDING:

By application of GRIs 1 (Section XVI Note 2(b)) and 6, the subject chainsaw guide bars, imported alone without the chainsaw blade, are classified under heading 8467, HTSUS, specifically subheading 8467.91.01, HTSUS, which provides for “[T]ools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof: Parts: Of chain saws.” The column one, general rate of duty is free.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8467.91.01, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, importers of goods of China classified under subheading 8467.91.01, HTSUS, must also report the Chapter 99 subheading, i.e., 9903.88.15.

By application of GRIs 1, 3(b) and 6, the subject chain saw guide bar and chain saw blades, put up as a set for retail sale, are classified under heading 8202, HTSUS, specifically subheading 8202.40.60, HTSUS, which provides for “[H]andsaws, and metal parts thereof; blades for saws of all kinds (including slitting, slotting or toothless saw blades), and base metal parts thereof: Chain saw blades, and parts thereof: Other.” The column one, general rate of duty is free.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8202.40.60, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, importers of goods of China classified under subheading 8202.40.60, HTSUS, must also report the Chapter 99 subheading, i.e., 9903.88.03.

As HTSUS is subject to periodic amendment, reasonable care should be exercised in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the U.S. Trade Representative and CBP websites, which are respectively available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the U.S. International Trade Commission’s website at www.usitc.gov.

You are directed to mail this decision to the IA applicant no later than 60 days from the date of this letter. On that date, the Office of Trade, Regulations and Rulings, will make the public version of the decision available to CBP personnel and to the public at www.cbp.gov by means of the Freedom of Information Act and by other methods of public distribution.
Sincerely,

Yuliya A. Gulis, DirectorCommercial and Trade Facilitation Division