HQ 082746 AS
April 21 1989
CLA 2 CO:R:C:G 082746 AS 825780
TARIFF NO. 732.18, 732.24
Sonnenberg, Anderson, O'Donnell
& Rodriquez
Attorneys & Counselors at Law
200 West Adams Street
Chicago, Illinois 60606
Gentlemen:
Re: Classification of all terrain style bicycles
Your letter of September 15, 1987, addressed to the Regional Commissioner of Customs at New York on behalf of your client Trek Bicycle Corporation requesting the tariff
classification of all terrain style bicycles has been referred to Headquarters for reply.
FACTS:
The subject bicycles consist of Trek Model Nos. 800, 820, 830, 850, and 900. These bicycles have wheels which are over 25 inches in diameter when measured to the outer circumference of the tire mounted thereon, weigh less than 36 pounds complete without accessories and are valued over $16.66 2/3 each. They are equipped with tires having a cross sectional diameter which does not exceed 1.625 inches.
ISSUE:
The issue presented is whether the bicycles are not designed for use with tires having a cross sectional diameter exceeding 1.625 inches. If they are not so designed they are
classifiable under item 732.18, Tariff Schedules of the United States (TSUS), with duty at the rate of 5.5 percent ad valorem. Otherwise they are classifiable under item 732.24 with duty at
the rate of 11 percent ad valorem.
LAW AND ANALYSIS:
There is general agreement that if a bicycle is designed for true off road or cross country riding (referred to as ATB or mountain or off road) it is most likely designed for use with 2.0
inch or larger tires which are crucial for off road riding.
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Thus, even if a bicycle has, for example, a narrow 1.5 inch tire at time of importation, if a change of tire makes the bicycle suitable for off road riding, it cannot be said to be designed
for use with the narrow tire. It is, in fact, designed for use with the wide tire. On the other hand, if the bicycle is designed for street use, it can be said that it is not designed for use with the wide tire, even if it can accommodate the wide tire.
You emphasize the point that the bicycles are imported, marketed, sold and used with narrow tires and this, in and of itself, should be enough to prove your case. However, you then
go on to state that Trek designed the bicycles for use with narrow tires because it was specifically designed for urban use but with some minor off road use as well. The narrower tire is ideal for street use because it gives a better rolling efficiency and is smoother, quieter and more comfortable.
You also point out that the frame materials of the two types of bicycles are different and that the frame designs are different. Also, the front fork on the subject models has been
designed to mount fenders and racks which would be dangerous to use on ATB's.
You then point out that the Model 900 has the Rigida 26 x 1.25 inch rim and the other models have the Araya 7XN 26x1.5 inch rim. These rims are designed to be used with 26 x 1.5 and 1.6 inch tires. Mounting a larger tire would not be desirable since the rims do not have a big enough hook section or deep enough vertical section to accommodate a larger tire.
We take the position that none of the models under discussion is an ATB. First of all, the model 900 is equipped with 26 x 1.25 inch rims. Everyone seems to agree that a bicycle
so equipped would not take the much larger sized tire needed for ATB cycling. Secondly, the model 800 and 820 are available in men's and women's models. We think that this is a strong
indication that they will not be used in ATB cycling because, as a general rule, women's models will not stand up to the rigors of ATB cycling because they do not have a top tube. We infer that
if the women's model is not suitable for ATB cycling, its companion men's model would likely also not be suitable. Finally, regarding the models 830 and 850, as well as all the models discussed, we accept your explanation of the reasons for their design and agree that they are different from the ATB's in many important respects.
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HOLDING:
The subject models are all classifiable under item 732.18, TSUS. Those which are imported on or after January 1, 1989, will be classifiable under the corresponding heading of the Harmonized Tariff Schedule of the United States, 8712.00.2000.
Sincerely,
John Durant, Director
Commercial Rulings Division