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HQ 965197




March 19, 2002

CLA-2 RR:CR:GC 965197 GOB

CATEGORY: CLASSIFICATION

TARIFF NO.: 8714.99.80

Shaun Simmons
President
Simports International, LLC
8212 Virginia Lane
Frederick, MD 21704

RE: NY H84031 Reconsidered; PITLOCK Bicycle Locking System

Dear Mr. Simmons:

This is in reply to your letter of August 16, 2001, requesting reconsideration of NY H84031 dated July 31, 2001, issued to Simports International, LLC. NY H84031 concerned the classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of the PITLOCK bicycle locking system (hereinafter referred to as either as the “PITLOCK system” or the “PITLOCK bicycle locking system”).

FACTS:

In NY H84031, the PITLOCK system was described as follows:

The PITLOCK system secures bicycle components to the frame by replacing conventional hardware. This system consists primarily of skewers and bolts. The skewers replace the conventional quick release skewers used to secure the wheels and seat post to a bicycle fork and frame. The bolts replace the conventional Allen key screws used to secure brakes and stems. The PITLOCK system also replaces conventional nuts with uniquely shaped locknuts that can only be opened with the matching key-like tool.

The file reflects the following. The good at issue is described as “Set 02BR/GA.” It includes the following. Wheel locking component: skewers; security ring; locknuts; pressure washer; teflon washer; and lock washer. Seat component: skewer; washer; lock washer; security ring; and locknut. Shocks component: threaded screw; and cap. Brake component: threaded screw; “washer-like” spacer; and security ring. All of the components are operated by a “key,” which is described as a six-sided nut-like part that is milled inside.

In NY H84031, the Director, National Commodity Specialist Division, determined that the PITLOCK system was classified in subheading 8714.99.80, HTSUS, as: “Parts and accessories of vehicles of headings 8711 to 8713: . . . Other: . . . Other: . . . Other.”

ISSUE:

What is the classification under the HTSUS of the PITLOCK bicycle locking system?

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). 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 GRI’s may then be applied.

An article is to be classified according to its condition as imported. See XTC Products, Inc. v. United States, 771 F.Supp. 401, 405 (1991) and United States v. Citroen, 223 U.S. 407 (1911). Because in its condition as imported, the PITLOCK system is prima facie classifiable under two or more headings, it cannot be classified pursuant to GRI 1. GRI 2 is not applicable here.

GRI 3 provides as follows:

When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:

The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings 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.

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, 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.

When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

EN (VIII) for GRI 3(b) provides:

The factor which determines essential character will vary as 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.

EN (X) to GRI 3(b) provides:

For the purposes of this Rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which:

(a) consist of at least two different articles which are, prima facie, classifiable in different headings ...

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and

(c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).

If classified separately, the items within the PITLOCK system would be described in the following headings: skewers – heading 8714; security rings – heading 8714; locknuts – heading 7318; washer – heading 7318; pressure washer – heading 7318; teflon washer – heading 3926; lock washer – heading 7318; coded locknut – heading 7318; key – heading 8204; threaded screw – heading 7318; cap – heading 8714; and “washer-like” spacer – heading 8714.

In your letter of August 16, 2001, you suggest that the PITLOCK system is best described by the following provisions within heading 8714 (“Parts and accessories of vehicles of headings 8711 to 8713”): subheading 8714.94.30 (“Brakes . . . : Drum brakes, caliper and cantilever bicycle brakes, and coaster brakes; parts thereof ...”); subheading 8714.93.05 (Hubs . . . : Hubs: Aluminum alloy hubs with a hollow axle and lever-operated quick release.”); and subheading 8714.99.60 (“Other: . . . Other: . . . bicycle handlebar stems wholly of aluminum alloy . . .and bicycle handlebar stem rotor assemblies.”)

We find that the PITLOCK system is not classified in these provisions because the provisions do not adequately and fully describe the PITLOCK system. For example, it is not a brake or part thereof; it is not a hub; and it is not a bicycle handlebar stem. Further, if it were in part one of these goods, such provision would only partly describe the PITLOCK system. See the discussion below with respect to “goods put up in a set for retail sale.”

You also assert that the PITLOCK system is classified in subheading 8301.60.00, HTSUS, as: “Padlocks and locks (key, combination or electrically operated) of base metal . . . Parts.” We find that the PITLOCK system is not described in heading 8301, HTSUS, because it is not “key, combination, or electrically operated” as provided in the heading. It is clearly not combination or electrically operated. As to whether the PITLOCK system is key operated, EN 83.01 provides in pertinent part as follows: “This heading covers fastening devices operated by a key (e.g., locks of the cylinder, lever, tumbler or Bramah types) . . . “ The PITLOCK system is not a lock of the cylinder, lever, tumbler or Bramah type. The “key” which is used in the PITLOCK system is not the type of key normally used in a lock or padlock, e.g., by itself, the item would be described in heading 8204, HTSUS, as a socket wrench. It is not the type of key used in locks of the cylinder, lever, tumbler or Bramah type.

It is our determination that the PITLOCK bicycle locking system constitutes “goods put up in a set for retail sale” within the meaning of GRI 3(b) as it meets the criteria specified in EN (X) to GRI 3(b), above. The PITLOCK system consists of articles which are prima facie classifiable in at least two headings; they are put up together to carry out a specific activity (i.e., to lock parts of the bicycle); and they are put up in a manner suitable for sale directly to users without repacking.

After careful consideration, we find that the essential character of the PITLOCK system is imparted by the skewers which are used on the front and rear wheels and the seat posts. The skewers are the largest of the items; the other items such as the security ring, locknuts, and various washers are arranged along the skewers. The skewers perform the primary immobilizing function of the PITLOCK system; the other items serve to hold in place and secure the skewers.

Accordingly, at GRI 3(b) we find that the PITLOCK bicycle locking system is described in heading 8714, HTSUS, and is classified in subheading 8714.99.80, HTSUS, as: “Parts and accessories of vehicles of headings 8711 to 8713: . . . Other: . . . Other: . . . Other.”

HOLDING:

At GRI 3(b), the PITLOCK bicycle locking system is described in heading 8714, HTSUS, and is classified in subheading 8714.99.80, HTSUS, as: “Parts and accessories of vehicles of headings 8711 to 8713: . . . Other: . . . Other: . . . Other.”

NY H84031 dated July 31, 2001 is affirmed.

Sincerely,

John Durant, Director
Commercial Rulings Division

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