Ms. Yesenia Martinez
Test Rite Products
1900 S. Burgundy Place
Ontario, CA 91761
RE: The tariff classification of Rotary Tool Kits from China
Dear Ms. Martinez:
In your letter dated November 27, 2018, you requested a tariff classification ruling. The submitted samples (four) will be returned to you as per your request.
Item AU50022A - 20 piece kit includes: 3 pcs/Plastic Brushes; 1 pc/Wire Brush; 6 pcs/1” Felt Wheels; 3 pcs/1/2” Felt Wheels; 2 pcs/Rubber Emery Wheels; 1 pc/Polishing Compound; 1 pc/Felt Bullet; 1 pc/Felt Wheel Mandrel; 2 pcs/Mandrels
Item AU50023A - 40 piece kit includes: 4 pcs/Grinding Wheels with 1/8” Shanks; 10 pcs/1/2” Sanding Bands, 1 pc/Sanding Drum, 1 pc/Mandrel, 20 pcs/Sanding Discs, 4 pcs/Grinding Wheel discs
Item AU50024A - 90 piece kit includes: 1 pc/ 7/8” Diamond Wheel, 1 pc/ 7/8” steel saw blade, 18 pcs/1-1/4” Cut-off Wheels, 2 pcs/1-1/4” Cut-off Wheels, 36 pcs/Cut-off Wheels: 24x0.6mm, 30 pcs/Cut-off Wheels: 24x0.8mm, 2pcs /1/8” Mandrels
Item AU50021A - 102 piece kit includes: 3 pcs/Aluminum Oxide Grinding Wheels, 3 pcs/Silicon Carbide Grinding Wheels, 6 pcs/Rubber Grinding Stones, 3 pcs/Sanding Disks, 3 pcs/Sanding Wheels, 6 pcs/Rubber Emery Wheels, 40 pcs/ 4/5” Sanding Discs, 36 pcs/ 15/16” Cut-off Wheels, 2 pcs/ 1/8” Mandrels
Each rotary tool set will be imported packaged in a plastic molded case, i.e., put up in a manner suitable for sale directly to the users without repacking.
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, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3. GRI 3(a) states that the heading which provides the most specific description shall be preferred to headings providing a more general description.
However, when two or more headings refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. The headings at issue only refer to part of the items in the set put up for retail sale. As such, they are regarded as equally specific and classification of the set is to be determined by GRI 3(b) or GRI 3(c) taken in the appropriate order in which they are set out in GRI 3. The rotary tool kits, as described above, each consist of at least two dfferent articles that are, prima facie, classifiable in different headings. They consist of articles put together to carry out a specific function (i.e., working various materials by sanding, sawing, brushing or grinding), and are put up in a manner suitable for sale directly to the users without repacking. Therefore, these tool kits are 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. Inasmuch as no essential character can be determined for the imported rotary tool sets, GRI 3(b) does not apply. GRI 3(c) states that, if neither GRI 3(a) nor GRI 3(b) applies, the merchandise shall be classified in the heading which occurs last in numerical order among those equally meriting consideration. Rotary Tool Kits/AU50021A, Item AU50023A and Item AU50024A, are classified in the heading which occurs last in numerical order among those which equally merit consideration, i.e., heading 8466, Harmonized Tariff Schedule of the United States (HTSUS). Rotary Tool Kit/Item AU50022A is classified in the heading which occurs last in numerical order among those which equally merit consideration, i.e., heading 9603, HTSUS.
In accordance with GRI 3(c), the applicable subheading for the Rotary Tool Kits/AU50021A, Item AU50023A and Item AU50024A, as described above, will be 8466.10.0175, HTSUS, which provides for “Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for the machines; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads: Other”. The rate of duty will be 3.9 percent ad valorem.
In accordance with GRI 3(c), the applicable subheading for the 20 piece kit, Item AU50022A, will be 9603.50.0000, HTSUS, which provides for “Brooms, brushes (including brushes constituting parts of machines, appliances or vehicles), hand-operated mechanical floor sweepers, not motorized, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers; squeegees (other than roller squeegees): Other brushes constituting parts of machines, appliances or vehicles.” The general rate of duty is Free.
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). 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 8466.10.0175, 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., 9903.88.01, in addition to subheading 8466.10.0175, 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.
With regard to the polishing compound in Rotary Tool Kit/Item AU50022A, this merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency. Information on the TSCA can be obtained by contacting the EPA at 1200 Pennsylvania Avenue, N.W., Mail Code 70480, Washington, D.C., by telephone at (202) 554-1404, or by visiting their website at www.epa.gov.
With regard to the diamond wheel in Rotary Tool Kit/Item AU50024A, this article may be subject to antidumping duties or countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at http://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/.
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 Patricia O’Donnell at email@example.com.
Steven A. Mack
National Commodity Specialist Division