April 19, 2006 CBP Bulletin Notices on 40" LCD Monitors and Various Handtools and Toolsets

According to CBP, the modification is effective for merchandise entered or withdrawn from warehouse for consumption on or after June 18, 2006.

CBP states that any party who has received an interpretive ruling or decision on merchandise subject to the proposed revocation, and/or any person involved in substantially identical transactions should advise CBP by May 19, 2006, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.

Proposed Revocation of a Classification Ruling

40" LCD Monitors. The item in question is a 40-inch LCD NEC-Mitsubishi LCD4010-IT-BK LCD monitor. CBP notes that the monitors as imported do not have a television tuner and cannot decode video signals. However, an audio/video (AV) card can be incorporated after importation, for the purpose of viewing video signals. The monitor is designed to meet a variety of display venues such as public information kiosks, information displays at airports and train stations, electronic advertising, etc.

CBP is proposing to issue HQ 967768 in order to revoke NY L82966 and classify the monitor under HTS 8528.21.7001, as other color video monitors with a flat panel screen; rather than under HTS 8528.12.7201 as other color reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus with a flat panel screen, etc.

CBP states that it is incorrect to classify the monitors under HTS 8528.12 as they are without a television tuner.

CBP then considers classification under HTS 8528.21.7001 or HTS 8471.60.45, which provides for other automatic data processing (ADP) machines.

CBP states that in order to be classified within HTS 8471, subject merchandise must meet the terms of Legal Note 5(B) to HTS Chapter 84. Legal Note 5(B) requires that ADP machines meet the following conditions: (a) be of a kind solely or principally used in an ADP system, (b) be connectable to the central processing unit either directly or through one or more other units, and (c) be able to accept or deliver data in a form (codes or signals) which can be used by the system.

According to CBP, the monitors meet the criteria outlined in (b) and (c). However, with regard to (a), CBP states that there is insufficient evidence to show that the monitors meet this criterion, because (among other reasons) the monitors have within their circuitry the capability to process a video signal.

CBP states it has consistently held that multimedia displays that contain the components necessary to display video signals are classified under HTS 8528. Therefore, CBP is proposing to classify the monitor at issue under HTS 8528.21.70.

proposed: 8528.21.7001, 5%; current: 8528.12.7201, 5%.

Modification of a Classification Ruling

Various handtools and tool sets. At issue is a torque wrench (SKU 2696), a ratchet (SKU 40592), a 53-bit socket set (SKU 04142), and a 16-piece screwdriver bit and socket set (SKU 45785). (See CBP's notice for further description of the individual items at issue.)

CBP is issuing HQ 967400 in order to modify NY K82360 and reclassify the 53-bit socket set under HTS 8204.20.0000 as "socket wrenches, with or without handles, drives and extensions, and parts thereof;" rather than under 8207.90.60, which provides for interchangeable tools for handtools.

In addition, CBP is reclassifying the subject torque wrench, ratchet, and 16-piece screwdriver bit and socket set under HTS 8466.10.8075, as tool holders and self-opening dieheads: other; rather than under HTS 8204.20.0000.

CBP has determined the classification for each item based on the following findings in HQ 967400, which are summarized below:

Torque Wrench. According to CBP, the subject torque wrench does not include a socket or sockets, and as such cannot operate on a nut or bolt. Without the socket, the subject torque wrench does not have a "working part" within the meaning of Note 1 to Chapter 82, and cannot be classified therein. CBP finds that the torque wrench, without sockets, is classified in HTS heading 8466, as it is a tool holder for sockets, which are designed for hand operation.

Ratchet. With respect to the ratchet, CBP states that ratchets have been consistently classified under HTS heading 8466, as tool holders; therefore, the subject ratchet should be classified in HTS heading 8466 as well.

Tool Sets. With respect to the two tool sets, CBP states that the classification of goods put up in sets for retail sale is governed by GRI 3(b), which provides, in relevant part, that goods put up for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. In this case, the 53-bit socket set should be classified according to its essential character, which is given by the sockets classified under HTS heading 8204. For the 16-piece screwdriver bit and socket set, CBP states that the essential character is imparted by the drive handle classified under HTS 8466.

(See ITT's Online Archives or 02/14/06 news, 06021435, for BP summary of the proposed HQ 967400.)

new: HTS 8204.20.0000 (53-bit socket set), 9%, 8466.10.8075 (wrench, ratchet, and 16-bit screwdriver and socket set), 3.9%; previous: 8204.20.0000, 9%, 8207.90.6000, 4.3%.

April 19, 2006 CBP Bulletin (Vol. 40, No. 17) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_04192006_no17/