CLA-2-97:OT:RR:NC:N4:433
Sara Rider
Attorney-in-fact for Greg Manocherian
Martin E. Button, Inc.
55 New Montgomery Street, Suite 400
San Francisco, CA 94105
RE: The tariff classification of a 1937 Bugatti Type 57SC Atalante, Chassis No. 57511 from the United Kingdom.
Dear Ms. Rider:
In your letter dated November 18, 2016, on behalf of Greg Manocherian, you requested a tariff classification ruling. Descriptive and illustrative literature were provided.
The merchandise concerned is the 1937 Bugatti Type 57S, converted to a Type 57SC, Atalante, with Chassis No. 57511. The automobile originally of French design and construction is currently residing in the United Kingdom. The Bugatti Type 57 and later variants, the “Atlantic and Atalante,” were created by Jean Bugatti, who is the eldest son of Ettore Bugatti, the founder and proprietor of the automobile manufacturing company “Automobiles E. Bugatti.” It is said that, Jean Bugatti’s coachwork designs complemented Ettore Bugatti’s engineering skills, making Bugatti one of the most well-known and respected names in automobile manufacturing.
“Automobiles Ettore Bugatti was a French car manufacturer of high-performance automobiles, founded in 1909 in the then German city of Molsheim, Alsace by Italian-born Ettore Bugatti. Bugatti cars were known for their design beauty (Ettore Bugatti was from a family of artists and considered himself to be both an artist and constructor) and for their many race victories. The death of Ettore Bugatti in 1947 proved to be the end for the marque, and the death of his son Jean Bugatti in 1939 ensured there was not a successor to lead the factory. No more than about 8,000 cars were made. The company struggled financially, and released one last model in the 1950s, before eventually being purchased for its airplane parts business in the 1960s. In the 1990s, an Italian entrepreneur revived it as a builder of limited production exclusive sports cars. Today, the name is owned by German automobile manufacturing group Volkswagen.” (Wikipedia.org)
The Type 57 cars were built from 1934 through 1940, with a total of [710] models produced. Two basic variants of the Type 57 cars were manufactured, the first being the original Type 57, and the second being the lowered Type 57S and 57SC. The “S” stands for (Surbaissé – lowered) and the “C” stands for (Compresseur – supercharger). Only forty-three, 57S (Surbaissé) cars and two, 57SC (Surbaissé Compresseur) cars were originally manufactured. Of the forty-three, 57S cars manufactured, twenty-two were made by the Bugatti body and twenty-one carriages dressed by other body-builders.
Information obtained on the website of Wikipedia.org indicates that, “the “Atalante” was a two-door coupe body style similar to and built after the Atlantic, built on both the Type 57 and 57S, but with a single piece windscreen and no fin. Only 17 Atalante cars were made, four of which reside in the Cité de l'Automobile Museum in Mulhouse, France (formerly known as the Musee Nationale de L'Automobile de Mulhouse).”
The Cité de l'Automobile Museum in Mulhouse is claimed to be the largest car museum in the world, and showcases 98 brands and over 400 classic and prestigious racing cars that trace the history of the automobile. The museum is built around the Schlumpf collection of Bugatti classic automobiles and contains the largest and most comprehensive collection of Bugatti motor vehicles in the world. In an article posted on cnn.com, dated June 29, 2015, “not just one Bugatti, not even two, but 122 of them are amassed.” The museum affords a unique and impressive panorama glorifying the automobile industry from its very beginnings to modern times. The museum is segmented into three periods of time: the first being “the forerunners” 1878 to 1920, the second being “the golden age of the car” 1920 to 1950, and the third being “modern times” cars after 1950. One would find numerous Bugatti automobiles, including the Type 57 and Type 57S and Type 57SC, showcased and displayed for public viewing.
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.
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. Thus, items purporting to be classified in heading 9705 must be examined on a case-by-case basis, considering all the relevant factors involved.
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 is no dispute that the subject merchandise is a motor car, specifically known in car circles as a Grand Touring “GT” sports 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, it must be classified there, and not in heading 8703, HTSUS.
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.
For purposes of entitlement of duty-free status under heading 9705, 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. In the event and outcome that the 1937 Bugatti Type 57S, converted to a Type 57SC, Atalante, qualifies by its placement in time to be of historical interest, this office will not rule upon whether the deeds of the sports car, or relationship of the manufacturer or previous owners to the sports car, rise to the level of historical importance.
“Anthology of the 57S in 720 pages” (out of print)
Limited Edition
“Given the exceptional nature of the structure and its magnitude, only 900 were produced. The book is not distributed in bookstores. The order is effective upon receipt of the payment by credit card only.”
“Anthology of the 57S in 720 pages:
Richly illustrated with over 1,100 documents including 900 photographs and period letters, mostly unpublished to date, this book introduces the Bugatti 57 Sport models from their creation to the present day. In addition, 250 color photographs depict vehicles in the current collections. Stuffed with anecdotes relating to the first owners or current holders, this book also gives us many technical details and reveals all the manufacturing numbers. It is written in three parts and presents:
The genesis of the Type 57 and models specially derived for sport by the Factory and the private
The twenty-two 57S made by the Bugatti body
The twenty-one carriages dressed by the other body-builders.
The author:
Pierre-Yves Laugier is an authority well known in bugattistic circles and is certainly the best connoisseur of these models of exception that are the Bugatti 57S. He has teamed up with Jean-Louis Fatio and Lionel Decrey to give us all his knowledge accumulated in more than 20 years of research among the families of the former owners of these cars. Their research also led them to travel twice through the United States with the help of their friend Andy Rheault to discover the collections where some of these wonders have now found their new home. Discover in this book, chassis after chassis, all the tribulations of these Bugatti, from their factory exit to our days.”
By itself a published out-of-print anthology book, even written by a recognized authority, does not necessarily command a finding that the entire fleet of Bugatti Type 57 sports cars qualifies as a line of cars of historical interest classifiable in heading 9705, HTSUS. Yet, the book provides to limited readers a well-documented and chronicled accounting of the Bugatti 57S.
In context with the anthology book, we find that the Bugatti Type 57 and later variants, the “Atlantic and Atalante,” are housed in some of the finest museums around the world, some of which are captured by placement of time according to historical periods; are showcased and displayed for public viewings in numerous “Concours d’Elegance” events and similar type events held domestically and internationally; and are kept in private collections throughout the world. We are further of the mind-set that authentic (i.e., chassis and engine) Bugatti Type 57 sports cars represent some of the finest “material remains of human activity” of historical interest, which are placed along the time spectrum suitable for both human observation and study. As such, we are of the opinion that the merchandise concerned, the 1937 Bugatti Type 57S, converted to a Type 57SC, Atalante, with Chassis No. 57511, is classically represented within by the golden age of cars; is rare even with noting the overall production of 710 cars limited to 17 Atalante cars; and has a high price tag – all of which are reflective of the historical nature of this sports car.
The applicable subheading for the 1937 Bugatti Type 57S, converted to a Type 57SC, Atalante, with Chassis No. 57511, 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