H305588

HQ H305588 March 3, 2022 CLA-2 OT:RR:CTF:EMAIN H305588 NVF CATEGORY: Classification TARIFF NO.: 8505.11.00 John Bessich Follick & Bessich 33 Walt Whitman Rd Suite 310 Huntington Station, NY 11746 RE: Revocation of NY N304844; Classification of a magnetic sleeve Dear Mr. Bessich: This letter is in response to your request, dated August 6, 2019, for reconsideration of New York Ruling Letter (“NY”) N304844, which was issued to your client, Stanley Black & Decker (“SBD”) on July 11, 2019. In NY N304844, U.S. Customs and Border Protection (“CBP”) classified a magnetic sleeve under subheading 8505.90.40 of the Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Other, including parts: Work holders and parts thereof.” We have reviewed NY N304844 and are revoking NY N304844 in accordance with the reasoning below. Notice of the proposed action was published in the Customs Bulletin, Vol. 56, No. 3, on January 26, 2022. No comments were received in response to that notice. FACTS: As described in NY N304844, the magnetic sleeves or collars are cylindrically shaped articles. The body of each magnetic sleeve consists of a plastic or aluminum material that has a permanent magnet made from sintered neodymium-iron-boron fitted into one end of the sleeve and a metal spring band fastened around a recessed section of the outer surface located on the other end of the sleeve. In use, the user slides a screwdriver or a screwdriver bit into one end of the sleeve and on the other end, a metal screw is inserted into the sintered neodymium-iron-boron magnet. Each sleeve’s function is to magnetically facilitate the installation of a screw by stabilizing it while the tool (e.g., a manual or electric screwdriver) drives it into the workpiece. In our original ruling, we determined that the magnetic sleeve was classified under subheading 8505.90.40, HTSUS as work holders. In your request for reconsideration, you argue that the magnetic sleeve is classified under subheading 8505.11.00 as permanent magnets. ISSUE: Whether the magnetic sleeve is classified under subheading 8505.90.40, HTSUS as work holder or under subheading 8505.11.00, HTSUS as a permanent magnet. LAW AND ANALYSIS: The HTSUS provisions under consideration are as follows: 8505 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization: 8505.11.00 Of metal. ~~~~~~~~~~~~~~~~~~~~~~ 8505.90 Other, including parts: 8505.90.40 Work holders and parts thereof. Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 3(a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of the gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3(b) or GRI 3(c). GRI 3(b) states that composite goods or sets which cannot be classified by reference to GRI 3(a) are to be classified as if they consisted of the component that gives them their essential character. In this case, we have a composite good comprised of a plastic or aluminum sleeve with a permanent magnet at one end and pursuant to GRI 3(b), we must determine which element provides the essential character. In this respect, we note that the subject magnetic sleeve is not provided for under heading 8505, HTSUS, on the basis of GRI 1 as an “electromagnetic or permanent magnet chucks, clamps and similar holding devices”. While the subject sleeve steadies or guides a screw while in use, it is not itself a “holding device” due to this operation and also because its function is not similar to “chucks” or “clamps”, which hold workpieces and not other items that may facilitate the work accomplished (e.g., a screw). This is supported by Explanatory Note 85.05(3)*, which describes “electromagnetic or permanent magnet chucks, clamps and similar holding devices” as follows: These are mainly devices of various types in which magnets are used to hold work pieces in place while they are being worked. This group also covers holding devices for machines other than machine-tools (for example, magnetic devices for holding printing plates in printing machinery). After reviewing video footage of the magnetic sleeve in use that you provided with your reconsideration request, we find that the permanent magnet provides the essential character. The magnet in the sleeve holds a screw in place while it is being driven into wood or some other material. For instance, it prevents the screw from falling out of alignment or rotating when the drill is operated. The magnet also holds the screw straight while drilling at unusual angles and/or in hard-to-reach places and prevents it from falling off the bit. In essence, it obviates the need for the user of a drill or screwdriver to steady the screw with his or her hand. Therefore, the permanent magnet in the sleeve provides the essential character of the good. Pursuant to GRI 3(b), we classify the sleeve as if it consists solely of the component that imparts the essential character of the good, i.e., the permanent magnet. Consequently, the magnetic sleeve is classified under subheading 8505.11.00, HTSUS as a permanent magnet made of metal. HOLDING: By application of GRIs 1, 3(b), and 6, the magnetic sleeve is classified under subheading 8505.11.00, HTSUS which provides for “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization: Of Metal.” The column one, general rate of duty is 2.1% ad valorem. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov/tata/hts/. EFFECT ON OTHER RULINGS: NY N304844, dated July 11, 2019, is REVOKED. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin. Sincerely, Craig T. Clark, Director Commercial and Trade Facilitation Division

The HTSUS provisions under consideration are as follows:8505 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization:8505.11.00 Of metal.~~~~~~~~~~~~~~~~~~~~~~8505.90 Other, including parts:8505.90.40 Work holders and parts thereof.Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 3(a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of the gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3(b) or GRI 3(c). GRI 3(b) states that composite goods or sets which cannot be classified by reference to GRI 3(a) are to be classified as if they consisted of the component that gives them their essential character. In this case, we have a composite good comprised of a plastic or aluminum sleeve with a permanent magnet at one end and pursuant to GRI 3(b), we must determine which element provides the essential character. In this respect, we note that the subject magnetic s