CLA-2-82:OT:RR:NC:N1:118
Catherine Spencer
Freight Expediters
6920 Engle Road, Suite II
Middleburg Heights, OH 44130
RE: The tariff classification of an Outdoor Gift Set and an Axe-Saw from China.
Dear Ms. Spencer:
In your letter dated November 21, 2022, you requested a tariff classification ruling on behalf of Zippo Manufacturing Company. The merchandise is described as an Outdoor Gift Set, item number 40681. It includes the following articles, which you have stated will be imported packaged for retail sale:
Axe-Saw – The axe-saw consists of a hardened stainless steel, 15” serrated saw blade, attached to a polymer handle. It also incorporates a stainless-steel hatchet head and a mallet. A safety sheath is included to cover the hatchet head and saw blade when not in use. You have stated that the saw blade can cut branches up to 4” in diameter.
Typhoon Match Kit (TMK) – The TMK features a water-resistant storage chamber with a lid and a strike pad cap. It includes 4” long natural wood matches that are windproof and have a water-resistant coating.
Zippo Firefast Bellows – The bellows is made of plastic and includes an electric motor, an impeller style fan, and a vent to provide optimum air flow for fire starting needs. It is powered by AA Alkaline batteries (not included).
Tinder Shreds – The tinder shreds are 2” long natural shredded pine tinder shreds. They have a water-resistant paraffin wax coating and ignite with a spark or flame.
Regarding the classification of the Outdoor Gift Set, this item is imported in a single retail package that contains articles that are classifiable under different headings of the tariff. General Rule of Interpretation (GRI) 3(b) covers goods put up in sets for retail sale. The Explanatory Notes represent the official interpretation of the Harmonized Tariff Schedule (HTS) at the international level. Explanatory Note X to GRI 3(b) defines "goods put up in sets for retail sale". Such goods: (a) consist of at least two different articles that are classifiable in different headings, (b) consist of products 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. The subject articles in the Outdoor Gift Set, in our opinion, meet the criteria for sets as the terms are defined in the cited Explanatory Notes. The articles in the set are used together to start a campfire. Therefore, for the purposes of the HTS, the merchandise constitutes a set. Having determined that the items constitute a set for tariff classification purposes, we must decide the essential character. According to the Explanatory Notes to GRI 3(b), essential character may be determined by the nature of the material or component, its bulk, quantity, weight, or value, or by the role of the constituent material in relation to the use of the goods. Inasmuch as the axe-saw predominates by bulk, weight, and value, it is our opinion that it imparts the essential character to the Outdoor Gift Set.
You also requested a tariff classification on the Axe-Saw, item number 40475, when imported alone without the rest of the articles in the set. The axe-saw is composed of different components (i.e., handsaw, axe, and mallet) and is therefore considered to be a composite good in accordance with GRI 3(b). When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good. In this case we find that the handsaw imparts the essential character of the axe-saw.
The applicable subheading for the Outdoor Gift Set (item number 40681) and the Axe-Saw (item number 40475), when imported alone, will be 8202.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for handsaws, and metal parts thereof; blades for saws of all kinds (including slitting, slotting or toothless saw blades), and base metal parts thereof: handsaws, and parts (except blades) thereof. The general rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8202.10.0000, HTSUS, unless specifically excluded, are subject to an 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 8202.10.0000, HTSUS, listed above. 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 trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, 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, please contact National Import Specialist Anthony Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division