H307522

U.S. Customs and Border Protection HQ H307522 May 13, 2020 OT:RR:CTF:CPMM H307522 KSG CATEGORY: Classification TARIFF NO.: 8703.23.01 Lawrence Mushinske 285 South Van Dien Avenue Ridgewood NJ 07450 RE: Revocation of NY N278756 and NY N281521; tariff classification of 1937 automobile Dear Mr. Mushinske: This letter is in reference to New York Ruling Letters (NY) N278756, dated October 7, 2016, and NY N281521, dated December 23, 2016, regarding the classification of a 1937 Alfa Romeo automobile in the Harmonized Tariff Schedule of the United States (HTSUS). In NY N278756 and NY N281521, U.S. Customs & Border Protection (CBP) classified a 1937 Alfa Romeo automobile in heading 9705, HTSUS, which provides for collections and collectors' pieces of historical interest. We have reviewed NY N278756 and NY N281521 and determined that the rulings are in error. Accordingly, for the reasons set forth below, CBP is revoking NY N278756 and NY N281521. 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, notice proposing to revoke NY N278756 and NY N281521 was published on April 1, 2020, in Volume 54, Number 12 of the Customs Bulletin. One comment was received in response to this notice, which we will address below. FACTS: The merchandise discussed in both rulings, NY N278756 and NY N281521, is the same dismantled 1937 Alfa Romeo 8C 2900B Touring Lungo Berlinetta automobile, VIN #412020. The car underwent many major restorations having been dismantled many times. It is described in these rulings as containing engine #422001 amongst its dismantled components. There were 33 Alfa Romeo 8C 2900B automobiles built. Five of them have the Berlinetta long chassis. ISSUE: Whether this automobile is properly classified in heading 9705 as a collectors' piece of historical interest or in heading 8703 as a used automobile with an 8 cylinder engine. LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods 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 6 provides that for legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related Subheading Notes and, mutatis mutandis, to the above Rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this Rule the relative Section and Chapter Notes also apply, unless the context otherwise requires. The HTSUS headings under consideration are the following: 8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars: Other vehicles, with only spark-ignition internal combustion reciprocating piston engines 9705 Collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest Note 4(a) of Chapter 97, HTSUS, provides that “…articles of this chapter are to be classified in this chapter and not in any other chapter of the tariff schedule.” Consequently, classification in heading 9705, HTSUS, must be considered before resorting to any other heading in the HTSUS. See Headquarters Ruling Letter ("HQ") H021886, dated August 6, 2008. The Explanatory Note (EN) for heading 9705 states, in pertinent part, the following: These articles are very often of little intrinsic value but derive their interest from their rarity, their grouping or their presentation…. (B) Collections and collectors’ pieces of historical, ethnographic, palaeontological or archaeological interest, for example : (1) Articles being the material remains of human activity suitable for the study of the activities of earlier generations, such as : mummies, sarcophagi, weapons, objects of worship, articles of apparel, articles which have belonged to famous persons. (2) Articles having a bearing on the study of the activities, manners, customs and characteristics of contemporary primitive peoples, for example, tools, weapons or objects of worship. (3) Geological specimens for the study of fossils (extinct organisms which have left their remains or imprints in geological strata), whether animal or vegetable…. Goods produced as a commercial undertaking to commemorate, celebrate, illustrate or depict an event or any other matter, whether or not production is limited in quantity or circulation, do not fall in this heading as collections or collectors’ pieces of historical or numismatic interest unless the goods themselves have subsequently attained that interest by reason of their age or rarity. In Headquarters Ruling Letter ("HQ") H260566, dated July 7, 2016, CBP classified a 1955 Maserati that finished first in 1956 in the Coupe du Salon Montlhery race, and had been owned and driven by Paco Godia, a famous race car driver, in heading 9705, HTSUS. CBP stated that “[T]ypically, motor vehicles are mass-produced for commercial consumption and as such, would not fall under heading 9705 as a collectors' piece. However, in circumstances where a care (sic) is very rare and satisfies the conditions for items of historical significance, then it may be considered a collectors' item for the purposes of tariff classification.” Clearly, the Maserati described in HQ H260566 that won a famous car race and was driven by a famous race car driver is of historical significance. CBP held in HQ 088031, dated October 8, 1991, that jewelry owned by the Duke and Duchess of Windsor was eligible for classification in subheading 9705.00.0090, HTSUS. Some of the pieces were marked with inscriptions and dates. The focus of this ruling was whether the pieces of jewelry were considered articles which have belonged to famous persons for the purposes of heading 9705. CBP stated that the phrase in EN 97.05 (B)(1), "articles that have belonged to famous persons," is susceptible to a broad interpretation that would be impossible to administer. CBP further noted that the EN describes only examples so as to illustrate the scope of the heading, and concluded that “since there is no strict rule, items such as this must be examined on a case-by-case basis, considering all the facts involved” with regard to the historical interest of the good. In HQ 088031, the factors considered were: 1) the articles belonged to famous people; 2) the individuals were not only famous, but historically significant; 3) the articles had a markedly increased value because of their historical significance; 4) the jewelry was not just owned by the Duke and Duchess but was very closely associated with them; 5) jewelry in general, and this jewelry in particular, is useful in the study of earlier generations. Several of the pieces of jewelry in this collection bear inscriptions containing dates and relating to historic events. CBP also considered the opinion of experts knowledgeable in the area. Two collector automobiles, one produced in 1929 and the other produced in 1936, were determined in HQ 961279, dated November 5, 1998, to not qualify for classification in heading 9705, HTSUS. One automobile was a 1929 Bentley racing car. The other automobile was a 1936 Mercedes-Benz Special Roadster. Only 50 Bentleys of this type were produced; the first five were produced for racing purposes. It is estimated that less than 15 of the 1936 Mercedes-Benz Special Roadsters still exist. Both automobiles were owned by the Connor Living Trust that maintains a collection of unique and unusual automobiles, mainly produced during the late 1920's through the 1950's that are exhibi

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods 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 6 provides that for legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related Subheading Notes and, mutatis mutandis, to the above Rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this Rule the relative Section and Chapter Notes also apply, unless the context otherwise requires. The HTSUS headings under consideration are the following:8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars: Other vehicles, with only spark-ignition internal combustion reciprocating piston engines9705 Collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest Note 4(a) of Chapter 97, HTSUS, provides that “…articles of this chapter are to be classified in this chapter and not in any other chapter of the tariff schedule.” Consequently, classification in heading 9705, HTSUS, must be considered before resorting to any other heading in the HTSUS. See Headquarters Ruling Letter ("HQ") H021886, dated August 6, 2008. The Explanatory Note (EN) for heading 9705 states, in pertinent part, the following:These articles are very often of little intrinsic value but derive their interest from their rarity, their grouping or their presentation….(B)   Collections