CLA-2 CC:R:C:G 087303 JMH
Mr. Ryden Richardson, Jr.
Customs Administration Manager
Carmichael International Service
Post Office Box 54772, Terminal Annex
Los Angeles, California 90054-0772
RE: Integrated bicycle brake lever and click twist lever is a
part of bicycles and a composite good which does not have an
ascertainable essential character and is not included in the
terms of the duty free heading so it is ineligible for duty
free entry. essential character; use; GRI 1; GRI 3(c);
Chapter 99, U.S. Note 2; duty free.
Dear Mr. Richardson:
Your April 30, 1990, letter requesting a classification
ruling under the Harmonized Tariff Schedule of the United States
Annotated ("HTSUSA") on behalf of Shimano American Corporation
("Shimano") was referred to this office for a reply. The ruling
request concerns certain integrated bicycle brake and shift
levers.
FACTS:
The article in question is the Shimano "Total Integration
Shifter and Brake Lever," part number ST-M090, imported from
Japan. This integrated lever is both a brake lever and a click
twist lever for derailleur control with all-terrain bicycles.
The lever uses two ratchet-action push levers that are mounted
under the front bar of the bicycle in front of the bicyclist's
thumb when the hand is in the normal bar-gripping position. The
bicyclist is able to shift gears, either upshift or downshift,
with only a movement of the thumb.
ISSUE:
Whether the Shimano "Total Integration Shifter and Brake
Lever" is classified in subheading 8714.94.50, HTSUSA, as "Parts
and accessories of vehicles of headings 8711 to 8713...Brakes,
including coaster braking hubs and hub brakes, and parts
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thereof...Other...", or in subheading 8714.99.10, HTSUSA, as
"Parts and accessories of vehicles of headings 8711 to
8713...Other...Click twist grips and click stick levers..."
LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUSA, 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."
The appropriate heading for the levers in question is
heading 8714, HTSUSA. This heading describes "Parts and
accessories of vehicles of headings 8711 to 8713..." The Shimano
lever is principally, if not solely, used as a bicycle part. See
Section XVII, Note 3, HTSUSA. Bicycles are classified within
heading 8712, HTSUSA. Therefore, the levers meet the terms of
heading 8714.
To determine the appropriate subheading for the Shimano
lever, GRI 6, HTSUSA, one of the "following provisions" mentioned
in GRI 1, requires that the GRIs be utilized in sequential order
for subheadings as they are for headings. Therefore, the terms
of the subheadings must be examined. Since the lever in question
is both a part of a brake and a part of the gear shift mechanism,
two subheadings are applicable. The potential subheadings are
subheading 8714.94, HTSUSA, which describes "...Brakes, including
coaster braking hubs and hub brakes, and parts thereof...", and
subheading 8714.99, HTSUSA, which describes "...Other..."
When goods are classifiable under two or more subheadings
the provisions of GRI 3, HTSUSA, must be followed. GRI 3(a),
HTSUSA, states the heading which provides the most specific
description is preferred. However, GRI 3(a) also requires that
when the article in question is a composite good and the
subheadings each refer to only a part of the composite good, then
the subheadings are considered to be equally specific. The term
"composite goods" includes those goods which consist of different
components that are attached to each other so to be inseparable.
See Explanatory Note 3(b)(VI) and (IX), Harmonized Commodity
Description and Coding Service ("HCDCS"), Vol. 1 p. 4. The
Explanatory Notes, although not dispositive, are to be looked to
for the proper interpretation of the HTSUSA. 54 Fed. Reg. 35127,
35128 (August 23, 1989).
The lever in question is both a brake lever and a click
twist lever. These two components are joined together so to be
inseparable. Therefore, the Shimano lever is a composite good
under the HTSUSA. The subheadings which each cover part of the
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lever are considered to be equally specific. Since the lever
cannot be classified according to GRI 3(a), GRI 3(b), HTSUSA,
must be utilized.
GRI 3(b) provides that composite goods that cannot be
classified according to GRI 3(a) are to be classified according
to the component which gives the article its essential character.
"The facts which determine essential character will vary as
between different kinds of goods." Explanatory Note 3(b)(VIII),
HCDCS, Vol. 1, p. 4. The essential character of goods which
actively function in some manner is best determined by the use of
the goods.
The Shimano lever consists of both a braking component and a
gear shifting component. Both components are necessary for the
operation of a bicycle. More importantly, both components
contribute equally to the nature of the integrated lever.
Therefore, it is the opinion of this office that neither the
brake lever nor the click twist lever provide the essential
character to the article, and the Shimano lever cannot be
classified according to GRI 3(b).
When an article cannot be classified according to GRI 3(a)
or GRI 3(b), the article must be classified in the subheading
which falls last in numerical order. GRI 3(c), HTSUSA. Thus,
the correct subheading for the Shimano lever is within subheading
8714.99. The appropriate classification for the Shimano lever is
in subheading 8714.99.10, which describes "Parts and accessories
of vehicles of headings 8711 to 8713...Other...Click twist grips
and click stick levers..."
Subheading 8714.99.10 is footnoted to indicate that the
duty on certain parts of bicycles has been temporarily suspended.
The footnote provides direction to subheading 9902.87.14, HTSUSA.
Subheading 9902.87.14 states that shift levers, click twist grips
and other items of heading 8714 are to enter the United States
Customs Territory duty free until December 31, 1990. Chapter 99,
U.S. Note 2, HTSUSA, states that the GRIs apply to Chapter 99 as
they do to the preceding 98 chapters. In accordance with GRI 1
and GRI 6, the terms of subheading 9902.87.14 must be met.
It is the opinion of this office that the Shimano integrated
lever is not covered by the terms of the subheading. Subheading
9902.87.14 does not provide for "other similar articles", so
only the articles listed there are to be classified in the
subheading. The Shimano lever is not a click twist grip or
other item named in subheading 9902.87.14, and therefore, the
Shimano lever is not covered by the terms of the heading.
Therefore, the Shimano "Total Integration Shifter and Brake
Lever," does not fall within this provision, and is not eligible
for duty free entry.
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HOLDING:
The Shimano "Total Integration Shifter and Brake Lever,"
part number ST-M090, is a composite good which consists of a
brake lever and click stick lever. Neither component provides
the levers essential character since both components contribute
equally to the lever's use and character. Therefore, according
to GRI 3(c), the Shimano lever must be classified in the
classification which occurs last in numerical order. The
appropriate classification for the Shimano integrated lever is
within subheading 8714.99.10 which describes "Parts and
accessories of vehicles of headings 8711 to 8713...Other...Click
twist grips and click stick levers..."
The Shimano "Total Integration Shifter and Brake Lever,"
part number ST-M090, in accordance with Chapter 99, U.S. Note 2,
GRI 1 and GRI 6, is not covered by the terms of subheading
9902.87.14, HTSUSA. Therefore, the Shimano lever is ineligible
for duty free entry.
Sincerely,
John Durant, Director
Commercial Rulings Division