CLA-2-84:OT:RR:NC:N1:104
David Soyka
Manager, Trade Compliance
Stanley Black & Decker
1000 Stanley Drive
New Britain, CT 06053
RE: The tariff classification of a Drill/Driver and a tool kit from China.
Dear Mr. Soyka:
In your letter dated January 28, 2021, you requested a tariff classification ruling.
The first item under consideration is the Black & Decker Item number BDCDMT120 MATRIX 20V MAX Lithium Drill/Driver. This product consists of (1) 20V Max Power Unit (chuck), (2) Drill/Driver Attachment, (3) 20V Max Lithium Ion Battery, and (4) Charger.
The second item under consideration is the Black & Decker Item number BDCDMT1206KITC MATRIX 20V MAX 6-Tool Combo Kit with Storage Case. This item is imported packaged for retail sale and consists of (1) 20V Max Power Unit (chuck), (2) 20V Max Lithium Ion Battery, (3) Charger, (4) Impact Drill Attachment, (5) Drill Attachment, (6) Sanding Attachment, (7) Oscillating Attachment, (8) Router Attachment, (9) Jig Saw Attachment, and (10) a fitted plastic storage case.
General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), 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, HTSUS. 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.
Black & Decker Item numbers BDCDMT120 and BDCDMT1206KITC consist of at least two different articles that are, prima facie, classifiable in different headings. They consist of articles put up together to carry out a specific activity [i.e., performing mechanical operations (such as working, drilling, sanding, routing, etc.) on various materials]. Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, Item numbers BDCDMT120 and BDCDMT1206KITC will be considered sets for customs purposes. 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.
Inasmuch as no essential character can be determined, GRI 3(b) does not apply. GRI 3(c) states that, if neither GRI 3(a) nor GRI 3(b) applies, merchandise shall be classified in the heading that occurs last in numerical order among those equally meriting consideration.
Regarding the Black & Decker Item number BDCDMT120 MATRIX 20V MAX Lithium Drill/Driver, the Drill/Driver Attachment imparts the essential character and it is therefore classified in subheading 8467.21, HTSUS. GRI 3(b) noted.
In your request you suggest the Black & Decker Item number BDCDMT1206KITC MATRIX 20V MAX 6-Tool Combo Kit with Storage Case is properly classified in subheading 8467.21.0010, HTSUS, 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: Drills of all kinds: Rotary: Battery powered.” This office disagrees.
After reviewing the literature for Item number BDCDMT1206KITC, this office is of the opinion that only the Impact Drill Attachment, Drill Attachment, Sanding Attachment, Oscillating Attachment, Router Attachment, and Jig Saw Attachment merit equal consideration. In this case, all six tools fall under the same heading, i.e., heading 8467, HTSUS, which provides for tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof.
GRI 6 states in part that merchandise is to be classified at the subheading level according to the chapter notes and GRIs. By application of GRI 3(c), Item number BDCDMT1206KITC is classified in the subheading, which occurs last in numerical order, and as such, it is classified in subheading 8467.29, HTSUS.
The applicable subheading for the Black & Decker Item number BDCDMT120 MATRIX 20V MAX Lithium Drill/Driver will be 8467.21.0010, HTSUS, 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: Drills of all kinds: Rotary: Battery powered.” The rate of duty will be 1.7 percent ad valorem.
The applicable subheading for the Black & Decker Item number BDCDMT1206KITC MATRIX 20V MAX 6-Tool Combo Kit with Storage Case will be 8467.29.0055, HTSUS, which provides for “Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or non electric motor, and parts thereof: With self-contained electric motor: Other: Routers. The rate of duty will be Free.
Products of China classified under subheading 8467.29.0055, HTSUS, unless specifically excluded, are subject to the additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8467.29.0055, HTSUS, listed above. See U.S. Note 20 to Subchapter III, Chapter 99, HTSUS.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the Section 301 trade remedy, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 the World Wide Web at https://hts.usitc.gov/current.
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 Denise Hopkins at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division