CLA-2-98:OT:RR:NC:N4:433

Jeremy P. Block
Dell Will Customs Brokers
26480 Northline Commerce Drive
Taylor, MI 48180

RE: The tariff classification of equipment and goods related to the Road Racing World Championship Grand Prix Races to be held at multiple racing circuits in the United States.

Dear Mr. Block:

In your letter dated January 9, 2013, on behalf of Dorna Sports, you requested a tariff classification ruling.

Your request for a ruling pertains to the equipment and goods necessary for the operation and competition of the Road Racing World Championship Grand Prix Races (motorcycle sport) to be held at the Circuit of the Americas, Del Valle (Austin), Texas on April 21, 2013; the Mazda Raceway Laguna Seca, Monterey, California on July 21, 2013; and the Indianapolis Motor Speedway, Indianapolis, Indiana on August 18, 2013. The other fifteen races are held abroad.

 FIM Road Racing World Championship Grand Prix 2013 calendar, update as of December 11, 2012

Date Grand Prix Circuit  07 April Qatar* Doha/Losail  21 April Americas Austin  05 May Spain Jerez de la Frontera  19 May France Le Mans  2 June Italy Mugello  16 June Catalunya Circuit de Catalunya  29 June Netherlands** TT Assen  14 July Germany Sachsenring  21 July United States*** Laguna Seca  18 August Indianapolis Indianapolis  25 August Czech Republic Brno  01 September Great Britain Silverstone  15 September San Marino & Riviera di Rimini Marco Simoncelli Misano  29 September Aragón MotorLand Aragón  13 October Malaysia Sepang  20 October Australia Phillip Island  27 October Japan Motegi  10 November Valencia Ricardo Tormo-Valen   * Evening Race ** Saturday Race *** Only MotoGP class

About the FIM (www.fim-live.com): The FIM (Fédération Internationale de Motocyclisme) founded in 1904, is the governing body for motorcycle sport and the global advocate for motorcycling. The FIM is an independent association formed by 103 National Federations throughout the world. It is recognized as the sole competent authority in motorcycle sport by the International Olympic Committee (IOC). Among its 50 FIM World Championships the main events are MotoGP, Superbike, Endurance, Motocross, Supercross, Trial, Enduro, Cross-Country Rallies and Speedway. Furthermore, the FIM is also active and involved in the following areas: public affairs, road safety, touring and protection of the environment.

It is your belief that the appropriate classification for all associated equipment and goods is subheading 9817.60.0000 of the Harmonized Tariff Schedule of the United States (HTSUS), which allows in part, for the duty free importation of articles not intended for sale or distribution to the public, but belonging to participants, officials, accredited members, teams and delegations of an international athletic event held in the United States. All of the goods in question will be imported and re-exported via Air Charter and Ocean Container. These goods will include all the necessary equipment for participation in the races, such as, but not limited to, the racers’ gear; the racing motorcycles and engines; the wheels and tires for the motorcycles; and the tools for the upkeep and repairs of the motorcycles. Further, support equipment, such as television broadcasting equipment, team tents, comforts, and the like will be included.

Road Racing World Championship Grand Prix is the premier championship of motorcycle road racing. It is currently divided into three classes: MotoGP, Moto2 and Moto3. All three classes use four-stroke engines. In 2010, 250 cc two-strokes were replaced by the new Moto2 600 cc four-stroke class. In 2012, 125 cc two-strokes were replaced by the Moto3 250 cc four-stroke class with maximum weight limit 65 kg with fuel, and the engine capacity for MotoGP increased from 800 cc to 1,000 cc. Grand Prix motorcycles are purpose-built racing machines that are neither available for purchase by the general public nor can be ridden legally on public roads.

Subheading 9817.60.0000, HTSUS, provides for: Any of the following articles not intended for sale or distribution to the public: personal effects of aliens who are participants in, officials of, or accredited members of delegations to, an international athletic event held in the United States, such as the Olympics and Paralympics, the Goodwill Games, the Special Olympics World Games, the World Cup Soccer Games, or any similar international athletic event as the Secretary of the Treasury may determine, and of persons who are immediate family members of or servants to any of the foregoing persons; equipment and materials imported in connection with any such foregoing event by or on behalf of the foregoing persons or the organizing committee of such an event, articles to be used in exhibitions depicting the culture of a country participating in such an event; and, if consistent with the foregoing, such other articles as the Secretary of the Treasury may allow.

With regard to your request that CBP rule that the Road Racing World Championship Grand Prix Races held in America and abroad is an international athletic event (a/k/a, sport event), on May 14, 2002, notice was published in the Federal Register designating the Volvo Ocean Race, a round-the-world international sailing competition, as a qualifying international athletic event under subheading 9817.60.0000, HTSUS. Although on land rather than on water, we find that the Road Racing World Championship Grand Prix Races is another type of international racing competition. Consequently, these races, also qualify as an international athletic (sport) event under subheading 9817.60.0000, HTSUS. See Headquarters ruling HQ H174206 dated July 22, 2011 and New York ruling N233829 dated October 23, 2012.

Based on the information you provided, the direct equipment and goods necessary for the participation in the race, such as the racers’ gear, the racing motorcycles and engines, the tools for the upkeep and repairs of the motorcycles, and the wheels and tires, as well as, the support equipment, such as television broadcasting equipment, team tents and comforts, fall within the purview of subheading 9817.60.0000, HTSUS. This is subject to none of the items being offered for sale or distribution to the public, and provided said items are imported by, or on behalf, of eligible individuals or entities.

U.S. Note 8, Subchapter XVII, Chapter 98, provides: Any article exempt from duty under heading 9817.60.00 shall be free of taxes and fees that may otherwise be applicable, but shall not be free or otherwise exempt or excluded from routine or other inspections as may be required by the Customs Service. [Emphasis added.]

With regard to items that you have not specifically identified, it is within the discretion of the Port of Entry to determine whether the items meet the conditions and requirements of subheading 9817.60.0000, HTSUS. We recommend that you work with the Port of Entry with regard to any merchandise not identified herein and any other issues you may have, such as the correct marking of the merchandise, prior to importation.

The applicable subheading for the identified equipment and goods above, as well as the identified support equipment above, in regard to the Road Racing World Championship Grand Prix Races, will be 9817.60.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Any of the following articles not intended for sale or distribution to the public: personal effects of aliens who are participants in, officials of, or accredited members of delegations to, an international athletic event held in the United States, such as the Olympics and Paralympics, the Goodwill Games, the Special Olympics World Games, the World Cup Soccer Games, or any similar international athletic event as the Secretary of the Treasury may determine, and of persons who are immediate family members of or servants to any of the foregoing persons; equipment and materials imported in connection with any such foregoing event by or on behalf of the foregoing persons or the organizing committee of such an event, articles to be used in exhibitions depicting the culture of a country participating in such an event; and, if consistent with the foregoing, such other articles as the Secretary of the Treasury may allow.” The rate of duty will be free.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.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 the ruling, contact National Import Specialist Neil H. Levy at (646) 733-3036.

Sincerely,

Thomas J. Russo
Director
National Commodity Specialist Division