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HQ 088228


May 8, 1991

CLA-2 CO:R:C:M 088228 AJS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8714.91.30

Ms. Georgena Terry
President
Terry Precision Bicycles
1704 Wayneport Road
Macedon, NY 14502

RE: Bicycle frame and fork complete with bottom bracket and headset; Heading 8714; Subheading 8714.91; Subheading 8714.99; General Rule of Interpretation 6; General Rule of Interpretation 3; composite good; General Rule of Interpretation 3(b) Explanatory Note (VII); Subheading 8714.91.30.

Dear Ms. Terry:

Your letter of October 18, 1990, requesting the tariff classification of the "Terry" brand bicycle frame and fork complete with headset and bottom bracket (Terry), has been forwarded to this office for reply.

FACTS:

The article in question is a bicycle frame and fork, complete with bottom bracket and headset. The Terry will be used in the assembly of a bicycle.

ISSUE:

Whether the Terry is properly classifiable within subheading 8714.91, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for "parts and accessories of vehicles of headings 8711 to 8713: [f]rames and forks, and parts thereof"; or within subheading 8714.99, HTSUSA, which provides for other parts and accessories of the vehicles of headings 8711 to 8713.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification is determined first in accordance with the terms of the headings of the tariff and any relative section or chapter notes.

Heading 8714, HTSUSA, provides for parts and accessories of the articles of heading 8712, HTSUSA (i.e., bicycles). The Terry satisfies the terms of this heading. It is identifiable as being suitable for use solely or principally with the bicycles of head- ing 8712, HTSUSA. Accordingly, the Terry is properly classifi- able within heading 8714, HTSUSA.

Subheading 8714.91, HTSUSA, provides for frames and forks, and parts thereof. The Terry does not satisfy the terms of this subheading. While it consists of a frame and fork which satisfy this description, it also consists of a bottom bracket and headset which are not described within this subheading. Therefore, the Terry is not properly classifiable within this subheading.

Subheading 8714.99, HTSUSA, provides for other parts of the articles of heading 8712, HTSUSA. The Terry does not satisfy the terms of this subheading. While it consists of a bottom bracket and headset which satisfy this description, it also consists of a frame and fork which are provided for elsewhere. Accordingly, the Terry is not properly classifiable within this subheading.

GRI 6 states that "[f]or legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings . . . and, mutatis mutandis, to the above rules [i.e., GRI 1-5] . . ." This case involves the classification of a composite good which consists of components classifiable within different subheadings of a heading. GRI 3 governs the classification of composite goods. GRI 3(a) requires that the heading (hereinafter subheading) which provides the most specific description of the goods to be preferred to subheadings providing a more general description. However, when two or more subheadings each refer to part only of the materials or substance contained in a composite good, those subheadings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. The Terry satisfies this description. It is a composite good which consists of components referred to in two or more subheadings. Accordingly, the relevant subheadings in this case are to be regarded as equally specific.

GRI 3(b) states that composite goods made up of different components, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the component which gives them their essential character. The factor which determines essential character will vary as between different kinds of goods. GRI 3(b) Explanatory Note (EN) (VII). 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. EN (VII). In this instance, the frame gives the Terry its essential character because of its role in relation to the use of the merchandise. The frame is the building block of the Terry to which all three of the other components are attached. Without the frame, this subassembly could not be assembled or even exist. This is not true of the other three components. Therefore, the Terry is classifiable as if it consisted solely of the frame. The frame is classifiable within subheading 8714.91.30, HTSUSA, which provides for frames valued under $600. Accordingly, the Terry is properly classifiable within this subheading.

HOLDING:

The Terry is properly classifiable within subheading 8714.91.30, HTSUSA, which provides for frames valued under $600, dutiable at the rate of 4.9 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division


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