Twist Drill Bits

HQ 950035 September 10, 1991 CLA-2 CO:R:C:M 950035 DWS CATEGORY: Classification TARIFF NO.: 8207.50.20 Ms. Janet Banks The Mibro Group 111 Sinnott Road Scarborough, Ontario Canada MTL 456 RE: Twist Drill Bits Dear Ms. Banks: This is in response to your letter of June 27, 1991, concerning the classification of certain twist drill bits under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). FACTS: There are three types of twist drill bits that you wish to import from Czechoslavakia. The HSS Rolled Drills are made from high speed steel and they are hot-rolled forged. They come in various sizes and are used for drilling most ferrous and non- ferrous metals. The Ground Drills with 135 degree Split point are ground from solid high speed steel and are black-oxide coated. They are used for drilling hard materials in situations where excessive breakage may be encountered with general purpose drills. The Titanium Nitride Drills with 135 degree Split Point are ground from solid high speed steel and titanium. Again, they come in various sizes and are used for drilling hard materials, drilling holes faster, with longer tool life. All three types of drill bits contain over 0.2 percent chromium. ISSUE: What is the proper classification of the subject twist drill bits under the HTSUSA? LAW AND ANALYSIS: Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes. In understanding the language of the HTSUSA, the Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive, are to be used to determine the proper interpretation of the HTSUSA. 54 Fed. Reg. 35127, 35128 (August 23, 1989). Explanatory Note 82.07 (p.1109-1110) states that "this heading covers an important group of tools which are unsuitable for use independently, but are designed to be fitted, as the case may be, into: [tools], for . . . drilling . . . metals . . . or other hard materials . . ." The subject drill bits, according to the above language, are classifiable under heading 8207, HTSUSA. The twist drill bits are classifiable under subheading 8207.50.20, HTSUSA, which provides for: "[t]ools for drilling, other than for rock drilling, and parts thereof: [w]ith cutting part by weight over 0.2 percent of chromium." HOLDING: The subject twist drill bits are classifiable under subheading 8207.50.20, HTSUSA, which provides for: "[t]ools for drilling, other than for rock drilling, and parts thereof: [w]ith cutting part by weight over 0.2 percent of chromium." Because the merchandise is manufactured in Czechoslavakia, it will be entitled to duty free entry under the Generalized System of Preferences upon compliance with all applicable regulations. We are sending this file to the Chief of the Value and Marking Branch for their comments on the marking questions that you have raised. Sincerely, John Durant, Director Commercial Rulings Division