CLA-2-82:OT:RR:NC:N1:118
Fay Jin
GreatStar Industrial USA, LLC
9836 Northcross Center Court, Suite A
Huntersville, NC 28078
RE: The tariff classification, country of origin and marking of tap and die sets
Dear Mr. Jin:
In your letter dated July 1, 2025, you requested a tariff classification, country of origin and marking
determination for purposes of Section 301 and IEEPA duties.
The items under consideration are four separate tap and die sets. A tap and die set is a tool set used to create
or repair screw threads on both internal and external surfaces. Taps are used to cut internal threads within a
hole in a workpiece, while dies are used to cut external threads on screws, bolts, rods, or studs. Tap wrenches
and die stocks hold the tap or die while in use.
You have stated that the taps and dies are made of heat treated and tempered high carbon steel, and that the
cutting parts contain by weight less than 0.2 percent molybdenum. Sets one and two will be imported
packaged in a blister card, while sets three and four will be imported in fitted blow molded cases. You
further state that for each set, the tap wrenches and die stock are of Chinese origin, while the taps and dies
originate from Thailand. The sets include the following specific items:
Set one: 1 T-handle tap wrench, 1 die wrench, 4 taps and 4 dies.
Set two: 1 T-handle tap wrench, 1 die wrench, 5 taps and 5 dies.
Set three: 1 tap wrench, 1 die wrench, 11 taps and 11 dies.
Set four: 1 T-handle tap wrench, 1 tap wrench, 1 die stock, 5 taps and 5 dies.
Classification
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance
with the General Rules of Interpretation (GRIs). GRI 1 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 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. GRI 3(a) states in part
that when two or more headings each refer to a part of the item 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.
The instant tap and die sets 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., tapping and
threading). Finally, the articles are put up in a manner suitable for sale directly to users without repacking.
Therefore, the sets in question 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. The essential
character of these tap and die sets is imparted by the taps and dies.
The applicable subheading for the four tap and die sets will be 8207.40.6000, HTSUS, which provides for
interchangeable tools for handtools, whether or not power operated, or for machine tools …: tools for tapping
or threading, and parts thereof: other. The general rate of duty will be 4.8 percent.
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
8207.40.6000, 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/.
Country of Origin
Guidance in a situation where sets packaged for retail sale are involved is provided on the CBP website in
“CBP Section 301 Trade Remedies Frequently Asked Questions”. The answer to “How are the Section 301
duties assessed in respect to sets packaged for retail sale, which contain components covered by the Section
301 remedy,” reads, in pertinent parts, as follows:
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 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.
Following this guidance, the taps and dies are products of Thailand and are classified within the tariff
provision that the complete sets are classified. Accordingly, the country of origin of the four tap and dies sets
for Section 301 and other duty purposes is Thailand.
Marking
You propose marking the tap and die sets as follows: “Packaged in China with goods from China and
Thailand.” As explained below, the suggested marking does not comport with CBP’s country of origin
marking statute and regulations.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless
excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country
of origin of the article.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is
considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it
without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)),
provides that as a general rule marking requirements are best met by marking worked into the article at the
time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk,
molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides
that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate
purchaser unless deliberately removed is acceptable.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements
and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates
that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain.
Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the
article in the form in which it was imported. If an imported article is to be sold at retail in its imported form,
the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the tap and die sets is
the consumer who purchases the product at retail.
An article is excepted from marking under 19 U.S.C. 1304(a)(3)(D) and section 134.32(d), Customs
Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the
origin of such article. If CBP is satisfied that the article will remain in its container until it reaches the
ultimate purchaser and if the ultimate purchaser can identify the country of origin of the contents of the item
by viewing the container in which it is packaged, then the individual contents would be excepted from
marking under this provision. Accordingly, marking the retail packaging in which the tap and dies sets are
imported and sold to the ultimate purchaser in lieu of marking each individual item in the sets is an
acceptable country of origin marking.
In the instant scenario, we find that packaging of the tools within the blister packaging and blow-molded
cases 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 Thailand,” 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 its 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
(CFR), 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 CFR 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 Anthony Grossi at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division