CLA-2-87:OT:RR:NC:N1:101

David Koopmans, Attorney in Fact
Vintage Racing Motors, Inc.
P .O. Box 1607
Bellevue, WA 98009-1607

RE: The tariff classification of motor vehicle from Germany

Dear Mr. Koopmans,

In your letter dated December 6, 2010, you requested a tariff classification ruling.

The item under consideration has been identified as a used 1955 Mercedes Benz Type 196 S “300 SLR” chassis 000.2/55.

The vehicle is equipped with an in-line 8-cylinder engine with a displacement of 2982 cubic centimeters (cc).

In your request, you propose classification of the 1955 Mercedes Benz Type 196 S “300 SLR”, Chassis 000.2/55 in subheading 9705.00.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “ … collectors' pieces of historical … interest: Other”.

We recognize that the 1955 Mercedes Benz Type 196s “300SLR”, Chassis No. 000.02/55 is a collectible based on its rarity as an automobile or racecar, was one of only nine built, has been driven as a practice car in famous and historic race tracks by recognized drivers and was used as a training vehicle at the 1955 historic Le Mans race in which 83 lives were lost in a notorious crash driven by Pierre Levegh, who totaled his 300SLR race car.

We disagree that the practice car used as a training car on famous and historic raceways, or on other racetracks, qualifies as being in an historic event; the car itself was never used in a professional race, nor acclaimed with prestigious trophies or noteworthy titles. Further, the retention of the practice racecar by Mercedes Benz, and now by the larger corporation Daimler Benz AG, does not demonstrate that the racecar was owned by a famous person or family, but rather a car manufacturer of commercial vehicles, military conveyances and racecars, of which this particular practice/training racecar itself is not associated with any recognized historic events or accolades.

See Headquarters Ruling Letter 961279 dated November 5, 1998, in which rare automobiles (1929 Bentley and 1936 Mercedes Benz) added to a collection, were found not to have fall within the description of an “historical event” under the tariff, in that, the cars were neither proven to have been owned by a famous person, nor involved in one or more specific incidences or occurrences of significant historical value. Based on the facts of the aforementioned paragraph and consistent with 961279, NIS 433, is of the opinion that the merchandise concerned is not classifiable within heading 9705, 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 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 1955 Mercedes Benz Type 196 S “300 SLR”, chassis 000.2/55 will be 8703.23.0090, HTSUS, which provides for “Motor cars and other motor vehicles principally designed for the transport of persons … including … racing cars: 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 9705.00.0090, 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