HQ 0089970 - Reconsideration of HQ 088490; EN 83.01; Nightstick Autobar, KMS-005; Electronic Nightstick, KMS-009; 8708; 8512.30.00; Section XV, Note 2(c); Section XVII, Note 2(b); EN to GRI - United States International Trade Commision Rulings

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HQ 089970

December 2, 1991

CLA-2 CO:R:C:M 089970 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 8301.20.00

S. Richard Shostak and David R. Stepp
Stein, Shostak, Shostak and O'Hara
Suite 807
1620 L Street, N.W.
Washington, D.C. 20036-5605

RE: Reconsideration of HQ 088490; EN 83.01; Nightstick Autobar, KMS-005; Electronic Nightstick, KMS-009; 8708; 8512.30.00; Section XV, Note 2(c); Section XVII, Note 2(b); EN to GRI

Dear Mr. Shostak and Mr. Stepp:

This is in response to your letter of July 26, 1991, on behalf of your client, Kraco Enterprises, requesting a reconsideration of HQ 088490, dated March 20, 1991, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of the Nightstick Autobar, KMS- 005, and the Electronic Nightstick, KMS-009.

FACTS:

The articles in question are the Nightstick Autobar, model KMS-005, and the Electronic Nightstick, model KMS-009. The articles are automobile anti-theft devices that are marketed as automobile steering wheel locks. They are imported from Korea.

Both models of steering wheel locks are made of a carbon steel bar which is 21.5 inches long. One end of the bar fits around the steering wheel of an automobile and is secured by a key lock. The length of the Nightstick prevents the steering wheel from being freely turned, since the bar will either hit the window, the floor, or the roof and prevent the wheel from being further moved. Model KMS-009, the Electronic Nightstick also includes a flashlight with a krypton bulb and a motion sensor. If the car is jarred, an electronic alarm will sound and the light will flash.

HQ 088490 held that the nightsticks were classifiable under subheading 8301.20.00, HTSUSA, which provides for "[p]adlocks and locks (key, combination or electrically operated), of base metal . . . of a kind used on motor vehicles . . . ." The importer contends that the nightsticks are classifiable under Heading 8708, HTSUSA, which provides for "[p]arts and accessories of the motor vehicles of headings 8701 to 8705 . . .," HTSUSA, or, in the alternative, that the Electronic Nightstick is classifiable under subheading 8512.30.00, HTSUSA, which provides for "[e]lectrical lighting or signaling equipment . . . of a kind used for cycles or motor vehicles . . . [s]ound signaling equipment."

ISSUE:

What is the proper classification for the Nightstick Autobar and the Electronic Nightstick under the Harmonized Tariff Schedule of the United States (HTSUSA)?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

HQ 088490 held that the Nightstick Autobar and the Electronic Nightstick were classifiable under subheading 8301.20.00, HTSUSA, which provides for "[p]adlocks and locks (key, combination or electrically operated), of base metal . . . of a kind used on motor vehicles . . . ." In HQ 088490, it was determined that the nightsticks were "fastening devices operated by a key," and therefore, classifiable under Heading 8301, HTSUSA. See Harmonized Commodity Description and Coding System Explanatory Note (EN) 83.01, pg. 1117. This office finds no reason to overrule HQ 088490.

The importer argues that both nightsticks are classifiable under Heading 8708, HTSUSA, which provides for "[p]arts and accessories of the motor vehicles of headings 8701 to 8705." However, Section XVII, Note 2(b), states that the term "parts and accessories," as found in Heading 8708, HTSUSA, does not apply to "[p]arts of general use, as defined in note 2 to section XV, of base metal (section XV)." Section XV, Note 2(c) states that the term "parts of general use" includes "[a]rticles of heading 8301." Thus, if the nightsticks are classifiable as "locks" under Heading 8301, HTSUSA, then they are specifically
excluded from Section XVII and Heading 8708, HTSUSA.

Heading 8301, HTSUSA, provides for "[p]adlocks and locks (key, combination or electrically operated), of base metal." EN 83.01, pg. 1117, states that this heading covers "fastening devices operated by a key." The Nightstick Autobar is similar in action to a padlock. It shackles around the steering wheel and its elongated case or body prevents the wheel from being turned. This lock casing is similar to those found on a bicycle padlock which is elongated so that it can be wrapped around the bicycle and a secure object. Moreover, the Nightstick Autobar is marketed as a steering wheel lock. It is not a composite good-- it is simply a lock with an elongated body. Thus, the Nightstick Autobar is classifiable according to GRI 1 under subheading 8301.20.00, HTSUSA.

Like the Nightstick Autobar, the Electronic Nightstick shackles around the steering wheel and its body prevents the wheel from being turned. The Electronic Nightstick is also marketed as a steering wheel lock. However, unlike the Nightstick Autobar, the Electronic Nightstick contains several electronic devices, including an alarm, a siren, and a flashlight.

The importer argues that the Electronic Nightstick is a composite good and is classifiable according to GRI 3(b) under subheading 8512.30.00, HTSUSA, which provides for "[e]lectrical lighting and signaling equipment . . . of a kind used for cycles or motor vehicles . . . [s]ound signaling equipment." GRI 3(b) states that when goods are "prima facie, classifiable under two or more headings, classification shall be effected as follows:"

[C]omposite goods consisting of different materials or made up of different components . . . which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

While this office agrees that the Electronic Nightstick must be classified according to GRI 3(b), we disagree with the importer's contention that the "electronic devices" constitute this article's essential character.

The Explanatory Notes to GRI 3(b), pg. 4, state that "[t]he factor which determines essential character will vary 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."

The importer places great emphasis on the value of the electronic devices found in the Electronic Nightstick, contending that they represent $15.02 of the nightstick's $25.56 total cost. In comparison, the importer states that the value of the lock and keys is only $1.15 (and the bar, $6.90). Thus, according to the importer's cost breakdown, the value of the electronic devices is a factor that supports its contention that the devices constitute the article's essential character.

A more significant factor in this instance, however, is the role of each constituent material--the lock and the electronic devices--in relation to the use of the Electronic Nightstick. The Electronic Nightstick is used to prevent the theft of an automobile. Without the lock, the automobile can still be stolen. If the device cannot be fastened onto the wheel, the nightstick can be easily removed, and the wheel can be turned-- regardless of the alarm or the flashing light. However, without the alarm and flashlight, the automobile cannot be stolen because the wheel cannot be turned. While the alarm and flashlight may have some deterrent value, this value does not outweigh the article's utility as a lock. Thus, the essential character of the Electronic Nightstick is demonstrated by the lock, and it, like the Nightstick Autobar, is classifiable under subheading 8301.20.00, HTSUSA.

HOLDING:

The Nightstick Autobar and the Electronic Nightstick are classifiable in subheading 8301.20.00, HTSUSA. HQ 088490 is hereby affirmed.

Sincerely,

John Durant, Director

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