DD 873390 Revoked; Cutter Blank, Polycrystalline DiamondCutter; Cutter Blank of Synthetic Diamond Bonded toTungsten Carbide Substrate, Cutter Blank for Attachment to Drill Bit Body; Interchangeable Tools for HandTools or for Machine Tools, Subheading 8207.12.60 Dear Mr. Cannon:
Active· CBP ruling HQ 958293· Issued 1996-04-23
Ruling text
HQ 958293
APRIL 23, 1996
CLA-2 RR:TC:MM 958293 JAS
CATEGORY: Classification
TARIFF NO.: 7116.20.50/9907.71.01
James R. Cannon, Esq.
Stewart and Stewart
2100 M Street, N.W.
Washington, D.C. 20037
RE: DD 873390 Revoked; Cutter Blank, Polycrystalline Diamond
Cutter; Cutter Blank of Synthetic Diamond Bonded to
Tungsten Carbide Substrate, Cutter Blank for
Attachment to Drill Bit Body; Interchangeable Tools for Hand
Tools or for
Machine Tools, Subheading 8207.12.60
Dear Mr. Cannon:
In DD 873390, issued to Camco International, Inc., on
May 1, 1992, the District Director of Customs, San Juan, Puerto
Rico, held that certain cutter blanks for drill bits were
classifiable as interchangeable tools for hand tools or for
machine tools.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19
U.S.C. 1625(c)(1)), as amended by section 623 of Title VI
(Customs Modernization) of the North American Free Trade
Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057,
2186 (1993), notice of the proposed modification of DD 873390 was
published on March 20, 1996, in the Customs Bulletin, Volume 30,
Number 12.
FACTS:
The merchandise in DD 873390 is a polycrystalline
diamond compact (PDC) cutter blank. It consists of synthetic
diamond bonded to a tungsten carbide substrate. After
importation, the cutter blank will be completed into a cutting
tool by insertion into pre-formed holes in a drill bit body or
shank. The ruling held that, as imported, these articles were
classifiable in subheading 8207.12.60 (now 8207.19.60),
Harmonized Tariff Schedule of the United States (HTSUS), a
provision for other rock drilling or earth boring tools, and
parts thereof.
- 2 -
The provisions under consideration are as follows:
7116 Articles of natural or cultured pearls,
precious or semiprecious
stones (natural, synthetic or reconstructed):
7116.20 Of precious or semiprecious
stones (natural, synthetic or
reconstructed):
Other:
7116.20.50 Other...4 percent
ad valorem/Free under
subheading 9907.71.01, as tool
blanks and drill
blanks, of industrial diamonds (provided for in
subheading
7116.20.50).
8207 Interchangeable tools for hand tools ***
or
for machine tools; base metal
parts thereof:
Rock drilling or earth boring
tools, and
parts thereof:
8207.19 Other,
including parts:
8207.19.60
Other...3.4 percent
* * * *
ISSUE:
Whether the PDC blanks are cutting tools of heading 8207.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) 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. GRI 3(b)
states in part that composite goods consisting of different
materials or made up of different components which cannot be
classified by reference to Rule 3(a), shall be classified as if
they consisted of the material or component which gives them
their essential character, insofar as this criteria is
applicable. - 3 -
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the official interpretation of
the Harmonized System. While not legally binding on the
contracting parties, and therefore not dispositive, the ENs
provide a commentary on the scope of each heading of the
Harmonized System and
are thus useful in ascertaining the classification of merchandise
under the System. Customs believes the ENs should always be
consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23,
1989).
As to the applicability of heading 8207, relevant ENs state,
at. p. 1110, that the interchangeable tools of that heading may
be either one-piece or composite articles. Composite tools
consist of one or more working parts of base metal, of metal
carbides or of cermets, of diamond or of other precious or semi-precious stones, attached to a base metal support, either
permanently, by welding or insetting, or as detachable parts. In
the latter case, the tools consist of a base metal body and one
or more working parts (blade, plate, point) locked to the body by
a device comprising, for example, a bridge plate, a clamping
screw or a spring cotter-pin with, where appropriate, a chip-breaking lip. Throughout the schedule, the expression "base
metals" means tungsten (wolfram), among others. Section XV, Note
3, HTSUS. The PDCs in HQ 081535 are composite tools consisting
of synthetic diamonds bonded together under high temperature and
pressure, and mounted on a substrate of tungsten carbide.
Tungsten carbide is a man-made, inorganic compound, not a base
metal. For this reason, the PDCs are not within the scope of the
cited ENs and are not provided for in heading 8207.
In accordance with GRI 3, the PDC blanks are composite goods
that are prima facie classifiable in the following headings:
Heading 2849, Carbides, whether or not chemically
defined;
Heading 7102, Diamonds, whether or not worked, but not
mounted or set;
Heading 7104, Synthetic or reconstructed precious or
semi-precious
stones, whether
or not worked or graded
but not strung,
mounted or set; and,
Heading 7116, Articles of precious or semiprecious
stones (natural,
synthetic or reconstructed).
Each of these headings describes part only of the PDC blanks.
There is no single heading that provides a specific description
for these PDC blanks, in accordance with GRI 3(a). In accordance
with Rule 3(b), they must be classified as if consisting of the
material or component that gives them their essential character,
insofar as this criteria - 4 -
is applicable. The RULE 3(b) ENs, at p. 4, state the factor
which determines essential character will vary as between
different kinds of goods. It may, for example, be determined by
the nature of the material or component, its bulk, quantity,
weight or value, or by the role of a constituent material in
relation to the use of the goods. In this
case, the tungsten carbide provides the substrate on which the
bonded diamond crystals are mounted and which permits attachment
to the shank of the core bit. Its bulk and weight are clearly
superior to the bonded diamond crystals. However, while cost or
value information has not been provided, we are advised that the
diamonds clearly predominate in value. Moreover, the synthetic
crystalline diamonds provide the cutting surface of the core bit.
They are more thermally stable than irregular small, mined
diamonds which they were developed to replace. We conclude it is
the diamond that imparts the essential character to the whole so
that the PDCs must be classified as if consisting only of
diamonds. Heading 7102 provides for diamonds while heading 7104
provides for synthetic precious or semi-precious stones.
However, in this case, individual diamond crystals have been
bonded together under heat and pressure into a cutting element,
which is an "article" of diamond. We conclude that from among
the competing provisions, heading 7116 provides the most specific
description for the PDCs.
HOLDING:
Under the authority of GRI 3(b), the diamond drill blanks or
PDCs are provided for in heading 7116. They are classifiable in
subheading 7116.20.50, HTSUS. Articles classifiable in this
provision are eligible for duty-free entry under subheading
9907.71.01, HTSUS, through the close of December 31, 2004.
DD 873390, dated May 1, 1992, is hereby revoked. In
accordance with 19 U.S.C. 1625(c)(1), this ruling will become
effective 60 days after its publication in the Customs Bulletin.
Publication of rulings or decisions pursuant to 19 U.S.C.
1625(c)(1) does not constitute a change of practice or position
in accordance with section 177.10(c)(1), Customs Regulations (19
CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division
Source: rulings.cbp.gov — ruling 958293, retrieved 2026-10-12T05:30:41Z, republished verbatim. This digest is informational; only CBP issues binding rulings.