CLA-2-84:OT:RR:NC:N1:164
M. Jason Cunningham
Sonnenberg & Cunningham PA
780 Fifth Avenue South, Suite A
Naples, FL 34102
RE: The tariff classification and country of origin of a tool set
Dear Mr. Cunningham:
In your letter dated May 30, 2025, you requested a tariff classification and country of origin determination
regarding a 109-piece tool set on behalf of your client Great Star Tools. Product information was submitted
with your request.
The item under consideration is described as a tool set comprising 109 items imported together inside of a
plastic molded case, ready for retail sale. The contents of the set include:
1 - Pair of long nose pliers
1 - Pair of diagonal pliers
1 - Pair of groove joint pliers
10 - Sockets
22 - Hex keys
1 - Hammer
22 - Cable ties
1 - Ratchet Handle
1 - Magnetic bit driver
48 - Screwdriver bits
1 - Level
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in
accordance with the General Rules of Interpretation (GRIs). GRI 1, 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. The
instant tool set 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., home improvement or
construction projects). Finally, the articles are put up in a manner suitable for sale directly to users without
repacking. Therefore, the set in question is within the term “goods put up in sets for retail sale.”
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 good. GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be
classified by reference to 3(a), are to be classified as if they consisted of the component which gives them
their essential character. The factor or factors which determine essential character varies with the goods
under consideration. Explanatory Note Rule 3(b)(VIII) lists factors such as the nature of the material or
component, their bulk, quantity, weight or value and the role of a constituent material in relation to the use of
the good. It is the opinion of this office that the ratchet handle and magnetic bit driver, functioning as tool
holders, impart the essential character of the tool set because they are used with a large quantity of sockets
(10) and screwdriver bits (48). Without the ratchet handle and magnetic bit driver, the utility of the sockets
and screwdriver bits would be significantly hampered and thus the overall functionality of the tool set would
be irreparably diminished.
The applicable subheading for the 109-piece tool set 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…; tool
holders for any type of tool for working in the hand: Tool holders and self-opening dieheads: Other. The
general rate of duty will be 3.9 percent ad valorem.
Regarding country of origin, you propose two scenarios. In scenario one, all component items are Chinese
origin except the ratchet handle and magnetic bit driver which are from Vietnam. In scenario two, all
component items are Chinese origin except for the sockets, screwdriver bits, ratchet handle, and magnetic bit
driver which are from Vietnam.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and other duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter
H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur
is whether an article emerges from a process with a new name, character, or use different from that possessed
by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982).
This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States,
16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
According to the CBP website under Section 301 Trade Remedies Frequently Asked Questions, “When
importing goods put up in sets for retail sale (in accordance with General Rule of Interpretation 3) that
contain articles subject to the Section 301 remedy, if the product that imparts the essential character to the set
(i.e., the HTSUS provision under which the entire set is classified) is covered by the Section 301 remedy,
then the entire set will be subject to the additional 25 percent duties. If the HTSUS provision under which the
entire set is classified is not covered by the Section 301 remedies, but the set contains components that are
classified in a subheading covered by the 301 list, the 301 duties will not be assessed on the individual
components.” In this case, the ratchet handle and magnetic bit driver of Vietnamese origin impart the
essential character of the 109-piece tool set and thus control the classification and country of origin of the
entire set. Accordingly, the country of origin in both scenarios for Section 301 and other duty purposes is
Vietnam.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must
be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading
8466.10.0175, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(C.F.R.), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 C.F.R. 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
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 Paul Taylor at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division