HQ 0089872 - Bicycle assemblies; frame set with front fork; crank bearing and axle set; quick release bolt; rear wheel assembly; front wheel assembly with multi-freewheel sprocket; hubs; spokes; tires; inner tubes; seat post; saddle; handlebar with grips; brake levers with cables; cantilever brakes; click shifter assembly with cables; stem; ENs 8714 (i) & (iii); H. Conf. Rep. No. 576; HQ 088228; GRI 3; Section XVII, General EN (III)(C)(3); GRI 6; GRI 3(a); GRI 3(b); GRI 3(b), EN (VII); composite good; GRI 3(b), EN (IX); GRI 3(c); Generalized System of Preferences; HQ 083470. - United States International Trade Commision Rulings

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HQ 089872

January 27, 1992

CLA-2 CO:R:C:M 089872 AJS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8714.91.30; 8714.91.20; 8714.93.60; 8714.93.30; 8714.93.60; 8714.95.00; 8714.99.90; 4011.50.00; 4013.20.00; 9902.40.11; 9902.87.14.

Ms. Tonya R. Markum
Unit International Inc.
900 University Blvd N
Suite 500
Jacksonville, FL 32211

RE: Bicycle assemblies; frame set with front fork; crank bearing and axle set; quick release bolt; rear wheel assembly; front wheel assembly with multi-freewheel sprocket; hubs; spokes; tires; inner tubes; seat post; saddle; handlebar with grips; brake levers with cables; cantilever brakes; click shifter assembly with cables; stem; ENs 8714 (i) & (iii); H. Conf. Rep. No. 576; HQ 088228; GRI 3; Section XVII, General EN (III)(C)(3); GRI 6; GRI 3(a); GRI 3(b); GRI 3(b), EN (VII); composite good; GRI 3(b), EN (IX); GRI 3(c); Generalized System of Preferences; HQ 083470.

Dear Ms. Markum:

Your letter of March 25, 1991, requesting the tariff classification of various bicycle assemblies and components has been forwarded to this office for reply.

FACTS:

The merchandise at issue consists of various assemblies of bicycle components.

Item 1 consists of a frame set with front fork, crank bearing and axle set, and quick release bolt. The frame is made of aluminum and is welded together. The front fork, fork bearings and quick release bolt are all made of steel.

The frame is produced in Brazil; the fork, bearings and quick release bolt are produced in Taiwan, the crank bearings are produced in Japan. These components are assembled and packed together.

Item 2 consists of a rear wheel and a front wheel assembly with multi-freewheel sprockets and quick release bolt, and with hubs, spokes, tires and tubes. The front rims, rear rims and hubs are made of aluminum. The spokes and multi-freewheels are made of steel. The tubes and tires are made of rubber.

The front and rear rims are produced in Japan and Argentina; the spokes and tubes are produced in Brazil; the hubs are produced in Japan or Taiwan; the multi-freewheels and tires are produced in Japan. The rear and front wheel are separate assemblies that include the hubs, spokes, tires and tubes. The rear wheel assembly also includes the multi- freewheel. The quick release bolt is not attached to either assembly.

Item 3 consist of a seat post made of steel and a saddle made of plastic, foam or lycra. Both articles are produced in Taiwan. They are assembled and packed together.

Item 4 consists of a handlebar with grips, brake levers with cables, cantilever brakes, click shifter assembly with cables and stem. The handlebars and stems are made of steel, the grips of rubber, the brakes of aluminum, and the click shifters of plastic and steel. The handlebars, stems and grips are produced in Taiwan, the brakes and clock shifters Japan. These components are an assembly, except the cantilever brakes are not attached to the assembly.

ISSUE:

Whether the subject bicycle assemblies are properly classifiable within subheading 8714.99.90, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "[p]arts and accessories of vehicles of headings 8711 to 8713: [o]ther: [o]ther: [o]ther", by the application of General Rule of Interpretation (GRI) 1; or classifiable as a GRI 3 composite good.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is governed by the 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 according to the following provisions [i.e, the other GRIs] . . ."

Heading 8714, HTSUS, provides for parts and accessories of the vehicles of headings 8712, HTSUS (i.e., bicycles). The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) state that the parts and accessories of this heading must be identifiable as being solely or principally used with bicycles, and they must not be excluded by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note). ENs 8714 (i) & (ii), p. 1437 (1991). The subject components, except the tires and inner tubes which will be discussed later, satisfy this description. While the ENs are not dispositive, they provide a commentary on the scope of each heading and offer guidance for interpretation of the HTSUS. H. Conf. Rep. No. 576, 100th Cong., 2d Sess., 549, reprinted in 1988 U.S. CODE CONG. & ADMIN. NEWS 1582. Accordingly, we consider the above ENs instructive for determining that the subject components, except for the tires and inner tubes, satisfy the terms of heading 8714, HTSUS.

Subheading 8714.91, HTSUS, provides for frames and forks and parts thereof. Item 1 consists of a frame set with front fork, crank bearing and axle set, and quick release bolt all assembled and packed together. In HQ 088228 (5/08/91), Customs addressed the classification of the "Terry" bicycle frame and fork which were complete with a headset and bottom bracket. We stated that this type of article is a composite good and classifiable by application of GRI 3. Further, we stated that this article was classifiable based on the component which imparted the article with its essential character. In that case, we found that the essential character of the Terry was imparted by the bicycle frame, and that it was classifiable within subheading 8714.91.30, HTSUS, which provides for "other" frames. Item 1 is similar to the Terry and is classifiable in a similar manner. However, if the frame component of item 1 is valued over $600, this item would be classifiable within subheading 8714.91.20, HTSUS, which provides for frames valued over $600 each.

Merchandise classifiable within subheading 8714.91.20, HTSUS, is eligible for treatment under the Generalized System of Preferences (GSP). Under the GSP, eligible articles which are the growth, product or manufacture of a designated beneficiary developing country (BDC) and which are imported directly into the customs territory of the United

States from a BDC may receive duty-free treatment if the sum of 1) the cost or value of materials produced in the BDC, plus 2) the direct costs of the processing operation in the BDC is equivalent to at least 35 % of the appraised value of the article at the time of entry. 19 U.S.C. 2435(b). The subject frame is produced in Brazil. Brazil is a BDC. General Note 3(c)(ii)(A), HTSUS. While the frame may be eligible for GSP treatment, sufficient information has not been provided to establish this fact. Consequently, we cannot determine this issue at this time. Questions regarding GSP eligibility should be addressed to the Special Classification Branch at (202) 566-5765.

It is argued that item 1 and the other items are classifiable within subheading 8714.99.90, HTSUS, which provides for "other" parts and accessories of bicycles. However, these items do not satisfy the terms of this subheading. In the case of item 1, it contains components (e.g., frame and fork) specifically enumerated within other subheadings of heading 8714, HTSUS. When goods are, prima facie, classifiable under two or more subheadings classification is governed by GRI 3. Item 1 satisfies this description. It consists of components, prima facie, classifiable within subheadings 8714.91, 8714.96 and 8714.99, HTSUS. GRI 3 specifically addresses the classification of composite goods made up of different components which are attached to each other to form a practically inseparable whole. GRI 3(b) and GRI 3(b), EN (IX). Item 1 satisfies this description. It consists of a frame, fork, crank bearing set, axle set and quick release bolt which are all attached together to form a whole. Accordingly, item 1 is classifiable as a GRI 3 composite good and not by the application of GRI 1. This conclusion regarding the applicability of GRI 1 also applies to the other three items.

Item 2 consists of a front wheel assembly, which includes a wheel rim, spokes, hub, inner tube and tire. Heading 8714, HTSUS, provides for wheel rims, spokes and hubs. The subject rim, hub and spoke components satisfy the terms of this heading. However, this assembly also contains components that do not satisfy the terms of this heading. It consists of a tire, which is provided for within heading 4011, HTSUS, and a tube provided for within heading 4013, HTSUS. Accordingly, the subject assembly is a composite good consisting of components which are, prima facie, classifiable within three headings.

Parts and accessories, even if identifiable as for the articles of this section, are excluded if they are covered more specifically by another heading elsewhere in the

Nomenclature. Section XVII, General EN (III) (C), p. 1412 (1991). Rubber tires and inner tubes of headings 40.11 and 40.13 are cited as examples of parts and accessories which are covered by this exclusion. Section XVII, General EN (III) (C) (3). Heading 8714, HTSUS is included within Section XVII. Therefore, we find this EN instructive for excluding the subject tires and tubes from classification within heading 8714, HTSUS. The tires are classifiable within subheading 4011.50.00, HTSUS, which provides for new pneumatic tires, of rubber, of a kind used on bicycles. The inner tubes are classifiable within subheading 4013.13.20, HTSUS, which provides for inner tubes, of rubber, of a kind used on bicycles.

Footnote 1/ to subheading 4011.50.00, HTSUS, states that the "[d]uty on bicycle tires temporarily suspended. See [sub]heading 9902.40.11." This subheading provides for the duty-free treatment of bicycle tires provided for within subheading 4011.50.00. The subject tire satisfies this description. Thus, it is also classifiable within subheading 9902.40.11, HTSUS.

Footnote 1/ to subheading 4013.20.00, HTSUS, states that the "[d]uty on inner tubes for bicycle tires temporarily suspended. See [sub]headings 9902.40.11." This subheading provides for the duty-free treatment for bicycle inner tubes provided for within subheading 4013.20.00, HTSUS. The subject tube satisfies this description. Therefore, it is also classifiable within subheading 9902.40.11, HTSUS.

GRI 6 states that 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 other GRIs, on the under- standing that only subheadings at the same level are comparable. The subject wheel rims and spokes are described within subheading 8714.92, HTSUS, which provides for wheel rims and spokes. The subject hubs are described within subheading 8714.93, HTSUS, which provides for hubs. As discussed previously, GRI 3 provides for the classification of goods which are, prima facie, classifiable within two subheadings. The subject front wheel assembly satisfies this description. It consists of a rim, hub, and spokes assembled together to form a whole. Accordingly, the front wheel assembly is a composite good classifiable by the application of GRI 3.

GRI 3(a) requires that the heading (hereinafter subheading) which provides the most specific description of the composite good to be preferred to subheadings providing a
more general description. However, when two or more subheadings each refer to part only of the components in a composite good, those subheadings are to be regarded as equally specific in relation to that good, even if one of them gives a more complete or precise description of the composite good. The subject front wheel subassembly satisfies this description. Subheadings 8714.92 and 8714.93 each refers to only part of the components in the assembly. Accordingly, these subheadings are equally specific in relation to the assembly. Therefore, the assembly cannot be classified by the application of GRI 3(a).

GRI 3(b) states that composite goods which cannot be classified by reference to GRI 3(a), shall be classified as if they consisted of the component which gives them their essential character. Essential character 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. GRI 3(b), EN (VIII). In this case, neither the rim, spokes or hub give the assembly its essential character. They each play an essential role in the use of a wheel. Accordingly, the subject front wheel assembly cannot be classified by the application of GRI 3(b).

GRI 3(c) states that when goods cannot be classified by reference to GRI 3(a) or 3(b), they shall be classified under the subheading which occurs last in numerical order among those which equally merit consideration. In this instance, heading 8714.93, HTSUS, satisfies this description. Therefore, the front wheel assembly is classifiable within subheading 8714.93, HTSUS. The subject hub itself is described within subheading 8714.93.30, HTSUSA, which provides for "other" hubs. Therefore, the subject front wheel assembly is properly classifiable within this subheading by the application of GRI 3(c).

Item 2 also consists of a rear wheel assembly. This assembly contains all of the components of the front wheel assembly as well as a multi-freewheel sprocket. This assembly would be subject to a similar type of GRI 3(c) analysis as that of the front wheel assembly. The subject multi-freewheel sprocket is described within subheading 8714.93.60, HTSUS, which provides for multiple free-wheel sprockets. This subheading occurs last in numerical order among those which merit consideration. Accordingly, the rear wheel assembly is classifiable within subheading 8714.93.60, HTSUS. However, the tire and tube included with this assembly are classified in the same manner as mentioned previously.

Footnote 1/ to subheading 8714.93.60, HTSUS, states that the "[d]uty on certain parts of bicycles temporarily suspended. See subheading 9902.87.14." This subheading provides for duty-free treatment of free wheel sprockets provided for within heading 8714. The subject rear wheel assembly satisfies this description even though only the free wheel sprocket is provided for within subheading 9902.87.14, HTSUS. This conclusion is supported by Chapter 99, note 2 which provides for the application of the GRIs to the provisions of this chapter. See also HQ 083470 (5/17/89). Accordingly, the rear wheel assembly is also classifiable within subheading 9902.87.14, HTSUS.

Item 2 additionally consists of a quick release bolt which is not attached to either of the other assemblies. Subheading 8714.99, HTSUS, provides for "other" parts and accessories of bicycles. The subject quick release bolt satisfies the terms of this subheading. More specifically, it is described within subheading 8714.99.90, HTSUS, which provides for "other" parts and accessories of bicycles.

Item 3 consists of a seat post and saddle assembly. Subheading 8714.95.00, HTSUS, provides for saddles. The subject saddle satisfies the terms of this subheading. Subheading 8714.99.90, HTSUS, provides for "other" parts and accessories of bicycles. The subject seat post satisfies the terms of this subheading. However, the assembly as a whole satisfies neither of these subheadings. The assembly is a composite good consisting of components which are, prima facie, classifiable within two subheadings of a heading. Accordingly, this assembly is classifiable by a GRI 3 analysis. In this instance, the saddle gives the assembly its essential character. The post is used to support the saddle and allow it to be attached to the bicycle. Accordingly, item 3 is classifiable within subheading 8714.95.00, HTSUS, by the application of GRI 3(b).

Item 4 consists of an assembly of a handlebar with grips, brake levers (with cables), click shifter assembly (with cables) and a stem. This assembly is a composite good consisting of components which are, prima facie, classifiable within two subheadings of a heading. Subheading 8714.94, HTSUS, provides for brakes and parts thereof. The subject brake levers satisfy the terms of this subheading. However, the other components of this assembly are described within subheading 8714.99, HTSUS, which provides for "other" parts and accessories of bicycles. This assembly is subject to a GRI 3(c) analysis since no single component gives the assembly its essential character. Accordingly, it is
classifiable within subheading 8714.99, HTSUS. More specifically, this assembly is classifiable within subheading 8714.99.90, HTSUS (i.e., the last in numerical order), which provides for "other" parts and accessories of bicycle.

HOLDING:

Item 1 is classifiable within subheading 8714.91.30, HTSUS, which provides for "other" frames dutiable at the General Column 1 rate of 4.9 percent ad valorem. If the frames are valued over $600, it is classifiable within subheading 8714.91.20, HTSUS, which provides for frames valued over $600 each, dutiable at the General Column 1 rate of 4.9 percent ad valorem. Merchandise classifiable within subheading 8714.91.20, HTSUS, is eligible for GSP treatment if all the legal requirements are met.

Item 2 consist of rear wheel assembly, front wheel assembly and quick release bolt. The rear wheel assembly is classifiable within subheading 8714.93.60, HTSUS, which provides for multiple free-wheel sprockets. This merchandise is also classifiable within subheading 9902.87.14, HTSUS, which provides for a temporary duty suspension for free wheel sprockets provided for within heading 8714.

The front wheel assembly is classifiable within subheading 8714.93.30, HTSUS, which provides for "other" hubs dutiable at the General Column 1 rate of 10 percent ad valorem.

The quick release bolt is classifiable within subheading 8714.99.90, HTSUS, which provides for "other" parts of bicycles dutiable at the General Column 1 rate of 10 percent ad valorem.

The subject tires are classifiable within subheading 4011.50.00, HTSUS, which provides for new pneumatic tires, of rubber and of a kind used on bicycles. This merchandise is also classifiable within subheading 9902.40.11, HTSUS, which provides for a temporary suspension for bicycle tires of rubber provided for within subheading 4011.50.00.

The subject inner tubes are classifiable within subheading 4013.20.00, HTSUS, which provides for inner tubes, of rubber and of a kind used on bicycles. This merchandise is also classifiable within subheading 9902.40.11, HTSUS, which provides for a temporary suspension for bicycle inner tubes of rubber provided for within subheading 4013.20.00.

Item 3 is classifiable within subheading 8714.95.00, HTSUS, which provides for saddles dutiable at the General Column 1 rate of 10 percent ad valorem.

Item 4 is classifiable within subheading 8714.99.90, HTSUS, which provides for "other" parts of bicycles dutiable at the General Column 1 rate of 10 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

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