CLA-2 CO:R:C:M 088228 AJS
Ms. Georgena Terry
Terry Precision Bicycles
1704 Wayneport Road
Macedon, NY 14502
RE: Bicycle frame and fork complete with bottom bracket and
headset; Heading 8714; Subheading 8714.91; Subheading 8714.99;
General Rule of Interpretation 6; General Rule of Interpretation
3; composite good; General Rule of Interpretation 3(b)
Explanatory Note (VII); Subheading 8714.91.30.
Dear Ms. Terry:
Your letter of October 18, 1990, requesting the tariff
classification of the "Terry" brand bicycle frame and fork
complete with headset and bottom bracket (Terry), has been
forwarded to this office for reply.
The article in question is a bicycle frame and fork,
complete with bottom bracket and headset. The Terry will be used
in the assembly of a bicycle.
Whether the Terry is properly classifiable within subheading
8714.91, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), which provides for "parts and accessories of
vehicles of headings 8711 to 8713: [f]rames and forks, and parts
thereof"; or within subheading 8714.99, HTSUSA, which provides
for other parts and accessories of the vehicles of headings 8711
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI's). GRI 1 provides
that classification is determined first in accordance with the
terms of the headings of the tariff and any relative section or
Heading 8714, HTSUSA, provides for parts and accessories of
the articles of heading 8712, HTSUSA (i.e., bicycles). The Terry
satisfies the terms of this heading. It is identifiable as being
suitable for use solely or principally with the bicycles of head-
ing 8712, HTSUSA. Accordingly, the Terry is properly classifi-
able within heading 8714, HTSUSA.
Subheading 8714.91, HTSUSA, provides for frames and forks,
and parts thereof. The Terry does not satisfy the terms of this
subheading. While it consists of a frame and fork which satisfy
this description, it also consists of a bottom bracket and
headset which are not described within this subheading.
Therefore, the Terry is not properly classifiable within this
Subheading 8714.99, HTSUSA, provides for other parts of the
articles of heading 8712, HTSUSA. The Terry does not satisfy
the terms of this subheading. While it consists of a bottom
bracket and headset which satisfy this description, it also
consists of a frame and fork which are provided for elsewhere.
Accordingly, the Terry is not properly classifiable within this
GRI 6 states that "[f]or legal purposes, the classification
of goods in the subheadings of a heading shall be determined
according to the terms of those subheadings . . . and, mutatis
mutandis, to the above rules [i.e., GRI 1-5] . . ." This case
involves the classification of a composite good which consists of
components classifiable within different subheadings of a
heading. GRI 3 governs the classification of composite goods.
GRI 3(a) requires that the heading (hereinafter subheading) which
provides the most specific description of the goods to be
preferred to subheadings providing a more general description.
However, when two or more subheadings each refer to part only of
the materials or substance contained in a composite good, those
subheadings 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. The Terry satisfies this description.
It is a composite good which consists of components referred to
in two or more subheadings. Accordingly, the relevant
subheadings in this case are to be regarded as equally specific.
GRI 3(b) states that composite goods made up of different
components, which cannot be classified by reference to 3(a),
shall be classified as if they consisted of the component which
gives them their essential character. The factor which
determines essential character will vary as between different
kinds of goods. GRI 3(b) Explanatory Note (EN) (VII). 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
(VII). In this instance, the frame gives the Terry its essential
character because of its role in relation to the use of the
merchandise. The frame is the building block of the Terry to
which all three of the other components are attached. Without
the frame, this subassembly could not be assembled or even exist.
This is not true of the other three components. Therefore, the
Terry is classifiable as if it consisted solely of the frame.
The frame is classifiable within subheading 8714.91.30, HTSUSA,
which provides for frames valued under $600. Accordingly, the
Terry is properly classifiable within this subheading.
The Terry is properly classifiable within subheading
8714.91.30, HTSUSA, which provides for frames valued under $600,
dutiable at the rate of 4.9 percent ad valorem.
John Durant, Director
Commercial Rulings Division