CLA-2-87:OT:RR:E:NC:N1:101
Henri A. Mora, Attorney
Martin E. Button, Inc.
55 New Montgomery Street, Suite 400
San Francisco, CA 94105-3429
RE: The tariff classification of a used automobile from Italy
Dear Mr. Mora,
In your letter dated June 23, 2009, you requested a tariff classification ruling on behalf of your client, Pegasus Classic Cars LLC. of West Palm Beach, Florida.
The item under consideration is a 1956 Ferrari 250 GT Berlinetta, Chassis # 0563GT.
The automobile has been used for both racing and display purposes and has gone through several mechanical and cosmetic modifications as well as several owners.
In your request, you propose classification of the Berlinetta in subheading 9705.00.0091 of the Harmonized Tariff Schedule of the United States (HTSUS) which provides for “Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographical or numismatic interest: Other.”
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and General Rules of Interpretation (GRIs) of the HTSUS. The ENs for heading 9705 state that “These articles are very often of little intrinsic value but derive their interest from their rarity, their grouping or their presentation.”
The ENs for heading 9705, further state, in part, that the heading includes:
(B) Collections and collectors’ pieces of historical, ethnographic, palaeontological or
archaeological interest, for example:
(1) Articles being the material remains of human activity suitable for the study of the activities of earlier generations, such as: mummies, sarcophagi, weapons, objects of worship, articles of apparel, articles which have belonged to famous persons.
(2) Articles having a bearing on the study of the activities, manners, customs and characteristics of contemporary primitive peoples, for example, tools, weapons or objects of worship.
(3) Geological specimens for the study of fossils (extinct organisms which have left their remains or imprints in geological strata), whether animal or vegetable.
The guidelines of the ENs indicate a narrow interpretation of coverage under heading 9705. We are of the opinion that the automobile does not fall within the above samples. The background of this automobile has been fully described. However, due to the “comprehensive” restoration and the number of collections that the car has passed through, we do not agree that it is an historical article that belonged to famous persons (or that they are ethnographic articles.) Accordingly, we conclude that the articles are not classified in heading 9705.00.00, HTSUS.
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1. states “ ... classification shall be determined according to the terms of the headings ... .” Heading 8703 provides for “Motor cars and other motor vehicles principally designed for the transport of persons … including … racing cars.”
General Note 3. (h) (vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.” Subheading 8703.23.00 of the HTSUS provides for “Motor cars and other motor vehicles principally designed for the transport of persons … including … racing cars: Other vehicles, with spark-ignition internal combustion reciprocating piston engine: Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc.”
The applicable classification subheading for the 1956 Ferrari 250 GT Berlinetta, Chassis # 0563GT will be 8703.23.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motor cars and other motor vehicles principally designed for the transport of persons … including … racing cars: Other vehicles, with spark-ignition internal combustion reciprocating piston engine: Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc: Other: Used.” The rate of duty will be 2.5 %.
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://ww.usitc.gov /tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding HTSUS subheading 9705.00.0091, contact National Import Specialist Neil Levy at 646-733-3036. If you have any questions regarding HTSUS subheading 8703.23.0090, contact National Import Specialist Richard Laman at 646-733-3017.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division