CLA-2-97:OT:RR:NC:N4:433
Sara Rider
General Manager
Martin E. Button, Inc.
55 New Montgomery Street, Suite 400
San Francisco, CA 94105
RE: The tariff classification of 1933 Bugatti Type 59, Chassis 59121, Engine Number 3 from the United Kingdom.
Dear Ms. Rider:
In your letter dated August 15, 2017, on behalf of Greg Manocherian, you requested a tariff classification ruling. You specifically, request that the 1933 Bugatti Type 59, Chassis 59121, Engine Number 3, be classified as a collectors’ piece of “historical significance” in heading 9705 of the Harmonized Tariff Schedule of the United States (HTSUS).
*****
Company Supporting Documentation:
(1) Sandy Leith Affidavit of Merit and Authenticity – “Bugatti Type 59, Chassis 59121, Eng. No. 3”
(2) Racing History of the Type 59 Bugatti Works Cars by David Sewell (January 31st, 2005) and Mark Morris (April 15th, 2017)
(3) Rene’ Dreyfus Biography – Source Wikipedia: https://en.wikipedia.org/wiki/Ren%C3%A9_Dreyfus
(4) Bugatti factory engine records and notes, relevant order and invoice book records
(5) C.E.C. “Charlie” Martin Bio – Source Historicracing.com:
http://www.historicracing.com/driver...3371
(6) Magazine Article on the Duke of Grafton’s Fatal Accident – “Tragedy at Limerick” from the September 1936 Issue of Motor Sport Magazine (Uncredited); Source: www.motorsportmagazine.com/archive/article/september-1936/25/tragedy-limerick
(7) Copy of the Current UK V5 Registration for the vehicle
Photos:
Duke of Grafton Bio – Source Wikipedia:
https://en.wikipedia.org/wiki/John_FitzRoy,_9th_Duke_of_Grafton
George Abecassis Bio – Source Wikipedia
https://en.wikipedia.org/wiki/George_Abecassis
Kenneth Bear Bio – Source Historicracing.com
http://www.historicracing.com/driver...2585
*****
Background; by Sandy Leith, American Bugatti Club Registrar & Historian:
Built in the latter half of 1933, “Voit. Mot. No. 3”, as it would have been known as in the Factory records, was registered 4619 NV 2 and allocated the internal Works chassis number, 441352, immediately prior to its racing debut on September 24, 1933 in the hands of Rene Dreyfus at the Spanish Grand Prix at San Sebastian. Wearing no. 26, Dreyfus finished a credible 6th. In March of the next year, “Voit. Mot. No. 3” was prepared for the Monaco Grand Prix in the hands of Robert Benoist. Regrettably, he crashed in practice after recording some impressive lap times, one equaling what would be the fastest lap of the subsequent race. The car was too badly damaged to repair in time for the race on the next day.
Returned to the Factory and repaired and uprated (from 2.8 litre to 3.3 litre), “Voit. Mot. No. 3” sat out the remainder of the 1934 season and was sold, along with “Voit. Mot. Nos. 1, 6 and 7” to four British amateur racing drivers; the subject car, now allocated chassis no. 59121, being sold to C.E.C. “Charlie” Martin on April 16, 1935. It appeared at no fewer than 9 racing events during the year, including multiple entries at Brooklands, Mannin Moar and the Marne, Dieppe, Nice and Donington G.P. races.
The car then went through the hands of John FitzRoy, the 9th Duke of Grafton, who perished in his one race in the car; to Arthur Baron, who rebuilt the car for sprint and hill-climb work, after removing the original gearbox and installing an ENV pre-selector unit. Actively campaigned in 17 events leading up to the outbreak of World War II, it emerged at the end of hostilities with George Abecassis and subsequently, Kenneth Bear, who each enjoyed tremendous success with the car between the years 1946 and 1949. Tragically, K.W. Bear, a heroic racer and popular member of the Bugatti Owners Club, was killed as a result of injuries sustained in an accident in 59121 at the April 28, 1949 Jersey Road Race.
Ownership of the car was assumed by E.A. Stafford East who eventually restored the car to running condition. Glimpsed briefly in 1982, then 1993, the car was sold at auction in 2005. Restored once more, a correct style G.P gearbox was fitted in place of the Arthur Baron fitted pre-selector unit. 59121 changed hands one or two more times until 2016 when it came into the hands of the present custodian, who has commissioned a frame-up restoration utilizing 100% Molsheim parts original to the car, save the gearbox and much of the aluminum bodywork.
Chassis 59121 was raced actively, particularly in its early years and suffered racing accidents, as many race cars did in the period. Few, if any of its peers, as a result, survived with their fragile aluminum skins intact or without the loss of a major component, such as the gearbox, a notorious weakness of the Type 59; in fact, only one of the eight original cars still has its original gearbox and only 5 in total survive at all. 59121, when it emerges from its present restoration, will roll out on four original and numbered pianowire wheels, the most distinctive feature of these unique and beautiful GP race cars and the only one of the surviving authentic T59’s to be able to make this claim. Featured as a centerpiece in some of the most significant automotive collections in the world, such as those of Friedhelm Loh, Mark Newsom and Ralph Lauren, 59121 will unquestionably be one of the most authentic and original examples of this extremely rare and iconic Bugatti model. The Type 59 represented the last concerted effort of the fabled Bugatti marque to attempt to compete on the world stage.
*****
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
Items purporting to be classified in heading 9705 of the HTSUS (“Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest”) must be examined on a case-by-case basis, considering all relevant factors involved.
There is no dispute that the subject merchandise is a motor car. Therefore, the question before us is whether the subject car is also described as a collectors’ piece, in which case, pursuant to Note 4 (a) to Chapter 97, HTSUS, it must be classified there, and not in heading 8703, HTSUS.
When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
In light of this, we turn to the ENs to inform and shape our understanding of the scope of the heading, but with the caveat that the ENs are used for guidance only in interpretation of the HTSUS. The ENs explain the scope of headings, often by means of exemplars, of which these examples are not necessarily all inclusive or all restrictive. The ENs should not restrict or expand the scope of headings, rather, they should describe and elaborate on the nature of goods falling within those headings, as well as the nature of goods falling outside of those headings.
The ENs to heading 9705, HTSUS, states, in pertinent part, the following:
These articles are very often of little intrinsic value but derive their interest from their rarity, their grouping or their presentation. The heading includes:
* * *
(B) Collections and collectors’ pieces of historical, ethnographic, paleontological 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.
There exists no strict standard or enumerated criteria for articles classified in heading 9705, HTSUS. The word “historic” is not defined by the tariff, nor by the ENs, and the dictionary definition is quite broad. The Oxford English Dictionary states it is, “A historical work or subject; a history. Now rare”, and “relating to history; concerned with past events.” “historic, n. and adj.” OED Online. Oxford University Press, December 2014. Web. 23 February 2015.
Cars present an interesting conundrum in a heading 9705 analysis, as motor cars and racing cars (even luxury ones) are generally-speaking mass-produced for commercial consumption. Goods produced as a commercial undertaking to commemorate, celebrate, illustrate, or depict an event or any other matter, whether or not production is limited in quantity or circulation, do not fall in this heading as collections or collectors’ pieces of historical interest [unless the goods themselves] have subsequently attained that status by reason of their age or rarity. With regard to the aforementioned sentence, noting goods obtain the level of collectors’ pieces by reason of their age or rarity, we also note that goods obtain the level of collectors’ pieces by their (1) placement along the time spectrum as recorded in the annals of historical accountings, (2) recognized accomplishments as documented and recorded in the pages of historical facts, and (3) association to famous persons with or without a nexus to an historical time. See New York rulings N281521 dated December 23, 2016; N284926 dated April 21, 2017; and Headquarters ruling HQ 962234 dated July 17, 2000.
For purposes of entitlement of duty-free status under heading 9705, HTSUS, goods need only show they reach the level of collectors’ pieces as set by one of the three “parameters” as listed in the last paragraph, last sentence above. If goods qualify by their placement in time to be of historical interest, then there is no requirement that those same goods be deed-worthy or belong to famous persons. We find that, the Bugatti sportscars from 1920 to 1950 falling into the category of the golden age of the car, and specifically that the 1933 Bugatti Type 59, Chassis 59121, Engine Number 3, is a part of racing history in that the racecar competed on famous racing circuits such as the Spanish Grand Prix at San Sebastian 1933; Monaco Grand Prix 1934; Brooklands 1935; Mannin Moar 1935; Marne 1935, Dieppe 1935, Nice 1935; and the Donington Grand Prix 1935. Also as indicated by Sandy Leith, this racecar competed in 17 other events leading up to World War II.
Sourced from http//www.fiaheritagemuseums.com: “The Fédération Internationale de l'Automobile (FIA) is a non-profit making association dedicated to representing the rights of motoring organisations and motor car users throughout the world. It is also the governing body for motor sport worldwide. The FIA's International Historical Commission (CHI) works to preserve world motoring heritage and trace its history. Working closely with the Fédération Internationale des Véhicules Anciens (FIVA), the CHI compiled a list of Automobile Museums and special collections around the world. The aim is to provide practical information on as many automobile museums as possible for motorists, travellers, historic vehicle enthusiasts, and motoring enthusiasts in general.” One such museum designated by the FIA/CHI as an FIA Heritage Museum is the “Bugatti Trust” of the United Kingdom, which is an independent charitable trust whose objectives are to preserve and make available for study the works of Ettore Bugatti. Many examples of Ettore Bugatti’s racecars have been displayed at this museum, and if not displayed, all Bugatti racecars have detailed workups, including the Bugatti Type 59, accounting for their place along the historical records of racecar driving.
With case in point, this office is satisfied that the 1933 Bugatti Type 59, Chassis 59121, Engine Number 3, has a placement in the annals of sportscar racing as logged by those racing circuit authorities, and kept in retained records by historians and enthusiasts, both of which track such racing events and their outcomes for purposes of historical remembrance. Those well-known racecar drivers, even without determining whether they are famous or not, contributed to the success of the historical accounting of the 1933 Bugatti Type 59, Chassis 59121, Engine Number 3. We also note that the value for Customs purposes is $5,850,000.00, which is reflective of the rarity of this racecar.
Upon proper supporting documentation, authenticating Chassis No. 59121 to its original engine or reworked engine, as well as identifying the coachwork performed, the merchandise concerned is a collectors’ item of historical interest.
The applicable subheading for the 1933 Bugatti Type 59, Chassis 59121, Engine Number 3, will be 9705.00.0070, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest: Archaeological, historical, or ethnographic pieces.” 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 https://hts.usitc.gov/current.
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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division