The tariff classification of a Dewalt Cordless Drill Kit from Canada

N054697 April 14, 2009 CLA-2-84:OT:RR:E:NC:1:104 CATEGORY: Classification TARIFF NO.: 8467.21.0010 Mr. Todd P. O’Neil Worldwide Promotions 31 Hickory Road Woodbridge, CT 06525 RE: The tariff classification of a Dewalt Cordless Drill Kit from Canada Dear Mr. O’Neill: In your letter dated March 16, 2009 you requested a tariff classification ruling. Model #DC759KAB is a Dewalt cordless drill kit which consists of one ½” cordless drill (Model #Dewalt DC759KA), two 18 volt Ni-Cad batteries, one battery charger, one double-ended screwdriver bit, and two drill bit sets in separate clamshell packaging (Model #DW2518 – Rapid Load 30-piece drilling and driving set and Model #DW1368 – 14 pc Pilot Point drill bit set). All these components come packaged for retail sale in a heavy-duty plastic carrying case. In your letter, you stated that while the drill is made in Mexico the accessories are made in Thailand, China, Mexico and Japan. 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, HTSUS. 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 tool kit 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., working wood and similar materials). Finally the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the kit in question is 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, GRI 3(b) does not apply. GRI 3(c) states that, if neither GRI 3(a) nor GRI 3(b) applies, merchandise shall be classified in the heading which occurs last in numerical among those equally meriting consideration. This office is of the opinion that only the cordless drill and the double-ended screwdriver bit and the drill bit sets merit equal consideration. In this case, the cordless drill falls under the heading 8467 and the bits fall under heading 8207. By application of GRI 3(c), the Dewalt cordless drill kit is classified in the subheading which occurs last in numerical order. The applicable subheading for the Dewalt Cordless Drill Kit, Model # DC759KAB will be 8467.21.0010, (HTSUS), which provides for Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or nonelectric motor, and parts thereof: With self-contained electric motor: Drills of all kinds…Rotary: Battery powered. The rate of duty will be 1.7% ad valorem. 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 World Wide Web at http://www.usitc.gov/tata/hts/. 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 (646) 733-3011. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division