Ratchet Socket Set Consisting of Ratchet Handles, Extension Bars, Screwdriver Bits, and Sockets

HQ 089976 AUGUST 7, 1991 CLA-2:CO:R:C:M 089976 JAS CATEGORY: Classification TARIFF NO.: 8206.00.0000/8204.20.0000; 8466.10.0070 Mr. John Goodrich Fingerhut Corporation 4400 Baker Road, A-195 Minnetonka, Minnesota 55343 RE: Ratchet Socket Set Consisting of Ratchet Handles, Extension Bars, Screwdriver Bits, and Sockets Dear Sir: This letter concerns the tariff status of a Drive Socket Set from Taiwan, the subject of previous rulings to your company. FACTS: New York ruling 824997, dated October 30, 1987, concerned the tariff status of an 87-piece ratchet socket set. The description of that set is incorporated by reference in this decision. Ruling 824997 held that the merchandise was classifiable under item 651.75, Tariff Schedules of the United States (TSUS), and on or after January 1, 1989, in subheading 8206.00.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The latter provision covers tools of two or more of headings 8202 to 8205, put up in sets for retail sale, dutiable under subheading 8204.20.0000, socket wrenches, with or without handles, drives and extensions, and parts thereof, at the rate of 9 percent ad valorem. Subsequently, on June 19, 1990, your company applied for a ruling on the same merchandise. New York replied by letter dated August 13, 1990 (854930) and held the merchandise to be classifiable in subheading 8466.10.0070, HTSUSA, tool holders for any type of tool for working in the hand: tool holders and self- opening dieheads. The rate of duty is 4.9 percent ad valorem. - 2 - This change in classification was made necessary when it was discovered that heading 8206 did not apply because the ratchet socket set did not contain tools of two or more of the headings 8202 to 8205. LAW AND ANALYSIS: Merchandise is classifiable under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) 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 provided the headings or notes do not require otherwise, according to GRIs 2 through 6. In accordance with GRI 3(a), goods put up in sets for retail sale, which cannot be classified in a heading providing a specific description, are to be classified as if consisting of the component which gives them their essential character, insofar as this criterion is applicable. Because heading 8206 was found not to apply, it became necessary to invoke GRI 3(a). The ratchet handle was then found to be the component essential to the operation of every other component in the set, and was the component always in use. It was therefore determined that the ratchet handle imparted the essential character to the socket set, thus making heading 8466 applicable. HOLDING: The 87-piece ratchet socket set is classifiable in subheading 8466.10.0070, HTSUSA, as indicated in New York ruling 854930. EFFECT ON OTHER RULINGS: New York ruling to you dated October 30, 1987 (824997) is revoked under the authority of section 177.9(d)(1), Customs Regulations. Sincerely, John Durant, Director Commercial Rulings Division