CLA-2-84:OT:RR:NC:N1:164
Fay Jin
Great Star Industrial USA, LLC
9836 Northcross Center Court, Suite A
Huntersville, NC 28078
RE: The tariff classification, country of origin, and marking of a tool set
Dear Fay Jin:
In your letter dated June 10, 2025, you requested tariff classification, country of origin, and marking
determinations regarding a 51-piece tool set. Product information was submitted with your request.
The item under consideration is described as a tool set comprising 51 items imported together inside of a
plastic molded case. The tool set will be imported within external packaging and ready for retail sale. The
contents of the set include:
1 - Adjustable wrench (China)
1 - Pair of long nose pliers (China)
1 - Claw hammer (China)
14 - Nut driver bits (China)
30 - Bits (China)
1 - Magnetic bit driver (Vietnam)
1 - Utility knife (China)
1 - Tape measure (China)
1 - Level (China)
Classification
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 GRIs 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 magnetic bit driver, functioning as a tool holder, imparts the
essential character of the tool set because it is used with a large quantity of nut driver bits and other bits.
Without the magnetic bit driver, the utility of the included bits would be significantly impeded and thus the
overall functionality of the tool set would be irreparably encumbered.
The applicable subheading for the 51-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.
Country of Origin
Regarding country of origin for Section 301 Trade Remedies and additional duty purposes, you state that all
component items are of Chinese origin except the magnetic bit driver, which is from Vietnam. When
determining the country of origin for purposes of applying current trade remedies under Section 301 and
additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter
(HQ) 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 magnetic bit driver of Vietnamese origin imparts the essential character of the
51-piece tool set and thus controls the classification and country of origin of the entire set. Accordingly, the
country of origin 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/.
Marking
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every
article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly,
indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to
indicate to the ultimate purchaser in the United States, the English name of the country of origin of the
article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to
know by an inspection of the marking on the imported goods the country of which the goods is the product.
The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by
knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should
influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (CBP) Regulations (19 C.F.R. 134) implements the
country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP
Regulations (19 C.F.R. 134.1(b)), defines “country of origin” as the country of manufacture, production, or
growth of any article of foreign origin entering the United States. Further work or material added to an article
in another country must effect a substantial transformation in order to render such other country the “country
of origin” within the meaning of the marking laws and regulations.
A substantial transformation occurs when, as a result of manufacturing process, a new and different article
emerges, having a distinct name, character or use, which is different from that originally possessed by the
article or material before being subjected to the manufacturing process. See United States v.
Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).
In the instant scenario, we find that packaging tools within a plastic molded case and external packaging does
not substantially transform the individual components. While you propose that the external packaging will be
marked “Packaged in China with goods from China and Vietnam,” this marking does not satisfy the marking
requirements and is not an acceptable country of origin marking. The ultimate purchaser must be able to
clearly identify the country of origin of each item in the set. Accordingly, each item’s origin must be clearly
identified on the item or the external packaging. Any references to the packaging must be preceded by the
country of origin markings.
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)
James Forkan
Acting Director
National Commodity Specialist Division