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HQ 955806


February 9, 1994

CLA-2 CO:R:C:M 955806 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 8714.99.90

Mr. Bruce Drew
Total Logistics Resources, Inc.
P.O. Box 30419
Portland, Oregon 97220

RE: Bicycle frames with various bicycle parts; GRI 2(a); HQ 084845; HQ 086555; HQ 089872; HQ 950118; EN to GRI 3(b); subheading 8712.00.15, 8712.00.25, 8712.00.35, HTSUS

Dear Mr. Drew:

This is in response to your letter of December 16, 1993, to Customs in New York, requesting, on behalf of Motiv Sports, Inc., the classification of bicycle frame assemblies under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter, together with the samples submitted, was referred to this office for a response.

FACTS:

The articles in question are four versions of bicycle frame assemblies. Upon importation, additional parts will be added to the amalgamated frame assemblies to produce complete bicycles.

Version one includes the frame, fork, crank set, kick stand, brakes, levers (brake/shifter), reflector, derailleur, handlebar, grips and stem. The total value upon importation is $86.27. Parts to be added to produce a complete bicycle are the front and rear wheels, seat and seat post, seat pin, pedals and chain. The value of these items is $47.17.

Version two is the same as version one, except that the imported frame does not include a crank set. The value of the imported components is $76.97, while the value of the components added in the U.S. is $56.47.

Version three includes the frame, fork, crank set, kick - 2 -
stand, brakes, reflector and derailleur. The total value upon importation is $55.87. Parts to be added to produce a complete bicycle are the front and rear wheels, seat and seat post, seat pin, pedals, chain, handlebar, stem, grips and levers (brake/shifter). The value of these items is $77.57.

Version four is the same as version three, except that the imported frame does not include a crank set. The value of the imported components is $46.57, while the value of the components added in the U.S. is $86.87.

ISSUE:

Whether the bicycle frame assemblies have the essential character of complete bicycles, so that they are, according to GRI 2(a), classifiable as bicycles under heading 8712, HTSUS.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states in pertinent part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."

The headings at issue are as follows:

8712 Bicycles and other cycles, not motorized

8714 Parts and accessories of vehicles of heading 8711 to 8713

With regard to the classification of unfinished articles, GRI 2(a) states that "[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article." Therefore, heading 8712, HTSUS, covers incomplete, non-motorized bicycles having the essential character of complete, non-motorized bicycles.

In determining an article's essential character, factors found to be relevant in other contexts include the significance of the imported components or their role in relation to the use or overall functioning of the complete article and, to the extent that it validates the comparison, the cost or value of the complete article versus the cost or value of the imported components. See HQ 084845, dated November 24, 1989; HQ 086555, dated April 16, 1990; HQ 950118, dated December 10, 1991; Harmonized Commodity Description and Coding System Explanatory - 3 -

Notes to GRI 3(b), pg. 4.

Although versions one and two are missing, among other parts, the front and rear wheels, it is our opinion that these assemblies have the form, shape and overall visual appearance of a complete bicycle. Further, the imported components of version one represent approximately 62% of the total value of the complete bicycle, and 59% of version two. Accordingly, the assemblies are classifiable under heading 8712, HTSUS.

Classification of these assemblies at the subheading level is dependent upon the diameter of both wheels. If both wheels do not exceed 63.5 cm in diameter, the assemblies are classifiable under subheading 8712.00.15, HTSUS. If both wheels exceed 63.5 cm in diameter, then the weight of the bicycle (complete without accessories) and the cross-sectional diameter of the tires is necessary to determine the proper subheading classification. If the bicycle weighs less than 16.3 kg complete without accessories and is not designed for use with tires having a cross-sectional diameter exceeding 4.13 cm, the assemblies are classifiable under subheading 8712.00.25, HTSUS. Otherwise, the assemblies are classifiable under subheading 8712.00.35, HTSUS.

In HQ 089872, dated January 27, 1992, a frame assembly consisting of a frame, fork, crank bearing and axle set, and quick release bolt, was classified under subheading 8714.99.90, HTSUS, rather than under heading 8712, HTSUS. While the frame assemblies in question (versions three and four) consist of more parts than the assembly of HQ 089872, it is our opinion that these assemblies do not have the essential character of complete bicycles.

Unlike version one, versions three and four do not include levers (brake/shifter), handlebar, grips and stem. While the addition of any one of these parts to versions three and four would not necessarily be determinative with regard to essential character, it is our opinion that the assemblies now under consideration do not have the essential character of a complete bicycle, and cannot be classified under heading 8712, HTSUS. This determination is supported by the cost breakdown of the complete article versus the cost or value of the imported components, where the imported components of version three represent approximately 42% of the total value of the complete bicycle, and 35% of version four.

Heading 8714, HTSUS, provides for parts and accessories of the vehicles of heading 8712, HTSUS. The assemblies in question (versions three and four) satisfy the terms of this heading, as they are components used solely or principally within heading 8714, HTSUS.

Subheading 8714.99, HTSUS, provides for "other" parts and accessories of bicycles. Versions three and four satisfy this description. They are assemblies of bicycle parts which, as a whole, are not specifically provided for within any other subheading of heading 8714, HTSUS. Therefore, these assemblies are classifiable within subheading 8714.99, HTSUS, specifically under subheading 8714.99.90, HTSUS.

HOLDING:

The bicycle frames assembled with various bicycle parts (versions one and two) are classifiable according to GRI 2(a) under heading 8712, HTSUS, which provides for bicycles, not motorized.

The bicycle frames assembled with various bicycle parts (versions three and four) are classifiable under subheading 8714.99.90, HTSUS, which provides for other parts and accessories of vehicles of headings 8711 to 8713, HTSUS. The corresponding rate of duty for articles of this subheading is 10% ad valorem.

Sincerely,

John Durant, Director

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