CLA-2-82:RR:NC:1:104
Ms. Francine Ramsey
Hampton Direct Inc.
350 Pioneer Drive
P.O. Box 1199
Williston, VT 05495
RE: The tariff classification of a paper punching tool set and paper puncher inserts from Taiwan
Dear Ms. Ramsey:
In your letter dated May 7, 2008 you requested a tariff classification ruling. Samples submitted for examination will be returned to your office as per your request.
The Kraftix Magnetic Interchangeable Paper Puncher w/6 Punch Inserts (Item #71010) contains one handheld tool holder, six magnetic punch inserts and a carry case. Materials of composition are ABS and zinc alloy. The punch tool holder is plastic. Unlike the punch inserts, it does not have a working part of metal or cermet. Each punch insert can be inserted into and removed from the tool holder by magnetization. Punch insert designs include Star, Apple, Moon, Music Note, Palm Tree and Water Splash. The tool is used for creating paper crafts and general scrapbooking projects. All the items, contained in a carrying case, are packaged in a white cardboard box.
The Kraftix Magnetic Interchangeable Paper Puncher Holiday Inserts (Item #71012) are packaged as a set of six. Punch insert designs include Heart, Flag, Clover, Tree, Bunny and Bat. The inserts are composed of ABS and zinc alloy. Although the punch insert with the bat design is a festive motif, the article has utilitarian use. Utilitarian articles are excluded from classification as festive articles in Chapter 95, Harmonized Tariff Schedule of the United States (HTSUS). The rest of the motifs (generic heart, flag, pine tree, bunny and clover) are not inherently festive. The six inserts, enclosed in a plastic shell attached to a cardboard backing with advertising, are packaged in a white cardboard box.
No single heading covers the subject kit (Item #71010). Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with General Rule of Interpretation (“GRI”) 3. 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 goods.
GRI 3(b) states, in relevant part, that goods put up in sets for retail sale shall be classified as if consisting of the material or component which gives them their essential character, insofar as this criterion is applicable. Explanatory Note (X) to GRI 3(b) states that for purposes of Rule 3(b) the term “goods put up in sets for retail sale” means goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and, (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).
The subject kit consists of a tool holder and interchangeable tools packaged together ready for retail sale which are prima facie classifiable in two different headings. The tool holder is classifiable as a tool holder in heading 8466, HTSUS. The punch inserts are classifiable as interchangeable tools in heading 8207, HTSUS. The set consists of articles put up together to carry out the specific activity of decoratively working with paper. 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. In this office’s opinion, the essential character of the entire set is determined by the tool, in this case the insert. By application of GRI 3(b), the paper punching tool set is classified in heading 8207, HTSUS.
Certain containers may be classified with the articles they are designed to hold, if the requirements of GRI 5(a) are met. GRI 5(a) states, in part, that:
Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long- term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith.
In this case, the case with the plastic insert is specially fitted to contain the specific set of articles. It is suitable for long term use, in that it is made of durable plastic and can be closed. The case is entered with the articles it contains. Thus, the case meets the requirements of GRI 5(a), and is classified with its contents.
The applicable subheading for the Kraftix Magnetic Interchangeable Paper Puncher w/6 Punch Inserts (Item #71010) and the Kraftix Magnetic Interchangeable Paper Puncher Holiday Inserts (Item #71012) will be 8207.30.6092, HTSUS, which provides for Interchangeable tools for handtools, whether or not power-operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screwdriving), including dies for drawing or extruding metal, and rock drilling or earth boring tools; base metal parts thereof: Tools for pressing, stamping or punching, and parts thereof: Not suitable for cutting metal, and parts thereof…Other tools. The rate of duty will be 2.9 percent 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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Patricia O’Donnell at 646-733-3011.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division