CLA-2-76:OT:RR:NC:N1:113
Mr. Steve Clyde Axxess International Inc. 3041 Commerce Drive, Suite A-1 Fort Gratiot, MI 48059
RE: The tariff classification of Broken Stud Removal Tool Kits from China
Dear Mr. Clyde:
In your letter dated June 24, 2019, on behalf of your client EZ Stud Out Enterprise Inc., you requested a tariff classification ruling. EZ Stud Out product specification sheets were submitted for our review.
The importation is identified as EZ Stud Out Broken Stud Removal Tool Kits that will be used to remove broken exhaust manifold studs from passenger car engines. You stated in your letter that “In certain cases, exhaust studs will break off leaving a mechanic no easy way to remove the stud(s) (head of bolt is broken off). These kits are packaged together for retail sale for mechanics use. The Kits are specifically designed for certain engines. While there are 9 different model kits, each model contains the same components.” Each EZ Stud Out Broken Stud Removal Tool Kit consists of an aluminum stud removal plate, welding grease, steel hexagonal nuts with no threads, and a plastic case. All of the items are made in China.
The aluminum stud removal plates are used as a template that is bolted to the exhaust manifest to enable a nut (provided in the kit) to be Metal in Gas (MIG) welded to the broken stud. By MIG welding the nut to the broken stud, the mechanic is able to loosen the broken stud for removal. The purpose of the welding grease is to help the provided nut stick to the template to facilitate MIG welding. The steel hex nuts are MIG welded to the broken stud. A carbide burr is included with the nuts. When the carbide burr is placed in a regular drill, it may be used to grind off any excess MIG weld flux materials. The plastic case will be used to hold all contents of the kit. The case contains a layer of ethylene-vinyl acetate foam on the bottom of the case and a layer of polyurethane foam on top. The top and bottom foam holds the nuts and templates tightly in the plastic case.
Each EZ Stud Out Broken Stud Removal Tool Kit contains an aluminum plate, grease, steel hex nuts and a plastic case. The aluminum, steel, chemical and plastic components are classified in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the aluminum, steel, chemical and plastic components of the Broken Stud Removal Tool Kit in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character.
Each EZ Stud Out Broken Stud Removal Tool Kit is a set which 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., to remove broken exhaust manifold studs from passenger car engines). Also, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the Broken Stud Removal Tool Kit 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 GRI 3(a), are to be classified as if they consisted of the component which gives them their essential character. EN VIII to GRI 3(b) explains that “the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.” We must determine whether the aluminum, steel, chemical or plastic component imparts the essential character to the kits under consideration. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the aluminum stud removal plate is necessary for removing the stud when the head of the bolt is broken off. For this reason, among the components that merit equal consideration, it is the opinion of this office that the aluminum stud removal plate imparts the essential character to the set. In accordance with GRI 3(b), the EZ Stud Out Broken Stud Removal Tool Kits will be classified in heading 7616, HTSUS, which provides for other articles of aluminum.
You suggested classifying the aluminum plates (i.e. the templates) within subheading 8205.59.7000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “other handtools” of aluminum. Hand tools, included in heading 8205, HTSUS, are not defined in the HTSUS or the Explanatory Notes (ENs). In Headquarters Ruling Letter 966118, dated September 11, 2003, CBP noted that the Courts have defined a hand tool as “any tool which is held and operated by the unaided hands; e.g., a chisel, plane or saw.” Western Oilfields Supply Co. v. United States, 296 F. Supp. 330, 62 Cust. Ct. 182 (1969); Hollywood Accessories, Division of Allen Electronics & Equipment Co. v. United States, 282 F. Supp. 499, 60 Cust. Ct. 360 (1968); F.B. Vandegrift & Co., Inc. v. United States, 65 Cust. Ct. 260 (1970). Similarly, Note 1 to Chapter 82, HTSUS, states that, with certain exceptions, “this chapter covers only articles with a blade, working edge, working surface or other working part of: (a) Base metal ….” The court in Continental Arms Corp.; Gehrig, Hoban & Co., Inc. v. United States, 65 Cust. Ct. 80, 82 (1970), defined a “working part” as the part of a hand tool “which performs work on an external object…. that part of the tool which does work in relation to a workpiece or object external to the tool”. The aluminum plates are used as templates which are designed to be mounted and screwed onto the cylinder head of engine assemblies in order to facilitate removal of bolts. As such, they do not have a “working part”, as defined above and within the meaning of Note 1 to Chapter 82. Furthermore, the aluminum plates do not meet the definition of a hand tool as discussed in HQ 966118 and the Court cases cited above. Accordingly, we find that the Slide Hammer is not classifiable as a hand tool in heading 8205, HTSUS.
The applicable subheading for the EZ Stud Out Broken Stud Removal Tool Kits will be 7616.99.5190, HTSUS, which provides for other articles of aluminum, other, other…other. The rate of duty will be 2.5 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 https://hts.usitc.gov/current.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings. Products of China classified under subheading 7616.99.5190, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 7616.99.5190, HTSUS, listed above. The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division