CLA-2-84:RR:NC:1:104 J89473
Mr. David Levine
Toolovation LLC dba IGO Home Products
23500 Mercantile Road
Suite A
Beachwood, OH 44122
RE: The tariff classification of the Home Décor Tool Kit from China
Dear Mr. Levine:
In your letter dated September 30, 2003 you requested a tariff classification ruling.
The Home Décor Tool Kit, Item #525/545, contains a powered screwdriver, a mini powered screwdriver, a cordless drill, a polypropylene holder for tool shipping or storage, eight (8) drill bits, ten (10) screwbits, 12 batteries and a user manual. The cordless screwdrivers and drill feature built-in electric motors powered by the included batteries. An internet product review found on the CBS News website describes the tools as “… lightweight, battery-operated power tools that can easily take care of simple tasks without having to be recharged or plugged in. They are easy to store; just put them in your kitchen drawer. Good for novices, too.”. Your firm’s website describes them as “kitchen drawer power tools”, not as tools that one would usually find in a homeowner’s tool box. Indeed, the drill weighs a mere one pound and can be used on wood, plaster and drywall. The three power tools will be used for general home repair and decorating. In a telephone conversation with a member of my staff, you confirmed that there will be no repacking done in the United States.
General Rule of Interpretation (GRI) 1, HTSUSA, states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUSA. GRI 3(a) states in part that when two or more headings each refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the good.
The instant tool kit consists of at least two different articles that are, prima facie, classifiable in different headings. It consists of articles put up together to carry out a specific activity (i.e., power drill/driving). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the kit in question 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 3(a), are to be classified as if they consisted of the component which gives them their essential character. Inasmuch as no essential character can be determined, GRI 3(b) does not apply. GRI 3(c) says that, if neither GRI 3(a) nor GRI 3(b) applies, merchandise shall be classified in the heading which occurs last in numerical order among those equally meriting consideration. After reviewing your submission, this office is of the opinion that only the screwdrivers and cordless drill merit equal consideration. In this case, all three items fall under the same heading, i.e., heading 8467.
GRI 6 states in part that merchandise is to be classified at the subheading level according to the chapter notes and GRIs. The cordless drill is classifiable in subheading 8467.21.0010. The powered screwdrivers are classifiable in subheading 8467.29.0040. Applying GRI 3(b) at the subheading level, neither the drill nor the screwdrivers can be said to impart the essential character to the kit. By application of GRI 3(c), the Home Décor Tool Kit, Item #525/545, is classified in the subheading which occurs last in numerical order.
The applicable subheading for the Home Décor Tool Kit, Item #525/545 will be 8467.29.0040, Harmonized Tariff Schedule of the United States (HTS), 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…Screwdrivers, nut-runners and impact wrenches. The rate of duty will be Free.
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 Robert Losche at 646-733-3011.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division