CLA-2-82:OT:RR:NC:1:118
Mr. Long Vu
Walgreen Co.
304 Wilmot Road
MS #3163
Deerfield, IL 60015
RE: The tariff classification of tool sets from China.
Dear Mr. Vu:
In your letter dated March 9, 2015, you requested a tariff classification ruling. The samples you have submitted are being returned as requested.
You provided samples of three tool kits. The first sample, identified by Walgreens Item Code (“WIC”) 903881, is referred to as a 4 Piece Homeowners Basic Tool Kit. It includes a 7-in-1 screwdriver (six bits are stored in the plastic cap of the handle), 6” slip joint pliers, 10’ tape measure and an 8oz hammer. The tools are imported packaged for retail sale in a zip-up carrying pouch. The pouch has Velcro straps and elastic loops that secure each tool.
The second sample, identified by WIC 903487, is referred to as a 27 Piece Tool Set. It includes a 6-piece mini screwdriver set, long nose pliers, magnifying glass, tweezers, 4-piece socket set (sized from 7mm to 10mm), 11-piece driver bits with holster, socket extension and a ratchet driver tool. The tools are imported packaged for retail sale in a folding carrying pouch with a Velcro closure. The pouch has elastic loops and individual pockets that are fitted for each of the tools.
The third sample, identified by WIC 903494, is referred to as a 6 Piece Tool Set. It includes a 9” torpedo level, 8oz hammer, 6” long nose pliers, 6” adjustable wrench, 12’ tape measure and a 6-in-1 screwdriver (with a removable bit holder and two double ended bits). The tools are imported packaged for retail sale in a generic utility bag. The bag is constructed with an outer surface of 100% polyester textile material. The bag is designed to provide storage, protection, portability, and organization for the tools and related articles. The bag has a textile-lined interior storage compartment that is not fitted or shaped for a particular article or set of articles. It has a top zipper closure and two carrying handles. The exterior of the bag features eight open pockets, three mesh pockets, and one pocket with a hook-and-loop closure. The bag measures approximately 10.5” (W) x 5” (D) x 7.75” (H).
All three tool kits are put up in sets for retail sale and contain tools of two or more of Headings 8202 to 8205, Harmonized Tariff Schedule of the United States (HTSUS). Therefore, we agree with your proposed classification of 8206.00.0000, HTSUS. Heading 8206 requires that duty be applied to that article in the set subject to the highest rate of duty. You suggested that the rate of duty for all three tool kits should be predicated on the tool pouches and the utility bag. However, the tool pouches included with the 4 Piece Homeowners Basic Tool Kit (WIC 903881) and the 27 Piece Tool Set (WIC 903487) are specifically fitted to hold and secure each tool. These pouches also do not provide additional storage for items other than the imported tools. Therefore, General Rule of Interpretation 5(a) is applicable and the pouches are subsumed into each of these tool sets. Consequently, the pouches in the 4 Piece Homeowners Basic Tool Kit (WIC 903881) and the 27 Piece Tool Set (WIC 903487) are not considered articles of the set for duty calculation under Heading 8206, HTSUS.
The applicable subheading for the 4 Piece Homeowners Basic Tool Kit, WIC 903881, will be 8206.00.0000, HTSUS, which provides for tools of two or more of the headings of 8202 to 8205, put up in sets for retail sale. The article in this set subject to the highest rate of duty is the slip joint pliers, classifiable in subheading 8203.20.4000, HTSUS, which provides for files, rasps, pliers (including cutting pliers), pincers, tweezers, metal cutting shears, pipe cutters, bolt cutters, perforating punches and similar handtools, and base metal parts thereof: pliers (including cutting pliers), pincers, tweezers and similar tools, and parts thereof: other: slip joint pliers. The rate of duty will be 12% ad valorem. The complete tariff classification of the set will be 8206.00.0000 / 8203.20.4000.
The applicable subheading for the 27 Piece Tool Set, WIC 903487, will be 8206.00.0000, HTSUS, which provides for tools of two or more of the headings of 8202 to 8205, put up in sets for retail sale. The articles in this set subject to the highest rate of duty are the sockets, classifiable in subheading 8204.20.0000, HTSUS, which provides for socket wrenches, with or without handles, drives and extensions, and parts thereof. The duty rate will be 9% ad valorem. The complete tariff classification of the set will be 8206.00.0000 / 8204.20.0000.
The applicable subheading for the 6 Piece Tool Set, WIC 903494, will be 8206.00.0000, HTSUS, which provides for tools of two or more of the headings of 8202 to 8205, put up in sets for retail sale. The article in this set subject to the highest rate of duty is the generic utility bag, classifiable in subheading 4202.92.9026, HTSUS, which provides for other containers and cases, with outer surface of man-made textile materials. The rate of duty is 17.6% ad valorem. The complete classification of the set will be 8206.00.0000 / 4202.92.9026.
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 Anthony Grossi at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division