CLA-2 CO:R:C:M 955280 LTO
Ms. Kris Chapple
Charles M. Schayer & Co.
3839 Newport Street
Denver, Colorado 80207
RE: Apache II Paragliders; heading 8801; EN 88.04; Doc. 37.533,
Tenth Session of HSC, October 1992
Dear Ms. Chapple:
This is in response to your undated letter to Customs in New
York requesting, on behalf of NAS Distributing, Inc., the
classification of paragliders under the Harmonized Tariff
Schedule of the United States (HTSUS). Your letter was referred
to this office for a response.
FACTS:
The articles in question are referred to as Apache II
Paragliders. Paragliders have non-porous canopies and other
features similar to those of a parachute (shape, cord shroud
lines, pilot's harness). However, this similarity does not
extend to their aerodynamic behavior. Under certain conditions,
paragliders, like gliders and hang gliders, can follow ascending
trajectories. Parachutes, which have highly porous canopies,
follow purely descending trajectories.
ISSUE:
Whether the Apache II Paragliders are classifiable under
heading 8801, HTSUS, which provides for gliders, hang gliders and
other non-powered aircraft, or under heading 8804, HTSUS, which
provides for parachutes (including dirigible parachutes).
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS - 2 -
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:
8801 Balloons and dirigibles; gliders, hang
gliders and other non-powered aircraft
* * * * * * * * * * * * *
8804 Parachutes (including dirigible parachutes)
and rotochutes; parts thereof and accessories
thereto
Under Article 7 of the Harmonized System Convention, the
Harmonized System Committee (HSC) is established to prepare
Explanatory Notes, Classification opinions and other advice as
guidance for the interpretation of the Harmonized System. This
guidance can take the form of classification decisions.
At its Tenth Session in October 1992 (see Doc. 37.533), the
HSC determined that paragliders were classifiable under heading
8804, HTSUS. The Committee also voted to amend the heading text
to read as follows [changes are underlined]:
Parachutes (including dirigible parachutes and
paragliders) and rotochutes; parts and accessories
thereto.
The HSC further voted to amend the text of Harmonized
Commodity Description and Coding System Explanatory Note (EN)
88.04. These notes constitute the Customs Co-operation Council's
official interpretation of the Harmonized System. While not
legally binding, the ENs provide a commentary on the scope of
each heading of the Harmonized System, and are generally
indicative of the proper interpretation of these headings. The
following language was added to the text of EN 88.04:
This heading also covers paragliders which
are designed for launching oneself from the side
of a mountain, the top of a cliff, etc. and which
consist of a folding shroud (wing), cord shroud
lines for steering in air currents and a harness
for the pilot.
However, their similarity to parachutes does
not extend to aerodynamic behaviour : under certain
conditions and if air currents so permit,
paragliders may follow ascending trajectories.
- 3 -
Under the procedure for amendments to the Harmonized System
set out in Article 16 of the Harmonized System convention, these
amendments were submitted to the Customs Co-operation Council.
The amendments will, unless an objection is lodged by one or more
contracting parties, become effective at the international level
on January 1, 1996. As is the case with all such amendments,
they are subject to the procedure for implementation provided in
Section 1205 and 1206 of the Omnibus and Competitiveness Act of
1988.
Pursuant to the amendments of heading 8804, HTSUS, and EN
88.04, paragliders will be classified in the provision for
parachutes under heading 8804, HTSUS, effective January 1, 1996.
We note that the HSC recognized that paragliders were similar to
parachutes, especially dirigible parachutes, in that they have a
harness and shroud lines, as well as the same shape and
construction, although the paragliders' non-porous materials
allow them to capture air and follow an ascending trajectory.
It is our opinion that the amendments to heading 8804,
HTSUS, and to EN 88.04, are essentially a clarification of what
has been previously considered "parachutes" under the HTSUS.
Therefore, the paragliders in question are presently classifiable
under heading 8804, HTSUS, specifically under subheading
8804.00.00, HTSUS.
HOLDING:
The Apache II Paragliders are classifiable under subheading
8804.00.00, HTSUS, which provides for parachutes (including
dirigible parachutes). The corresponding rate of duty for
articles of this subheading is 6% ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: NIS Mario DiCerbo
George Greer
Adventure Center, Inc.
18301 W. Colfax Avenue
Golden, Colorado 80401