CLA-2 CO:R:C:F 952045 LPF

Mr. Chet Ribner
Royce Union Bicycle Company, Inc.
400 Oser Avenue
Suite 1600
Hauppauge, NY 11788

RE: Modification of NYRL 850877; Four wheeled children's toy bicycle; Heading 9501, HTSUSA; Wheeled toy designed to be ridden by children; Not heading 8712, bicycle.

Dear Mr. Ribner:

This is in response to your letter dated June 5, 1992, requesting reconsideration of New York Ruling Letter (NYRL) 850877, issued April 5, 1990. In that ruling a children's toy bicycle was classified under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) in subheading 8712.00.1010 as "Bicycles and other cycles (including delivery tricycles), not motorized: Bicycles having both wheels not exceeding 65 cm in diameter, Having both wheels not exceeding 50 cm in diameter." In addition, a bear squeeze toy was classified in subheading 9503.49.0020 as "Other toys;...: Toys representing animals or non-human creatures (for example, robots and monsters) and parts and accessories thereof: Other, Toys not having a spring mechanism: Other."

We have reviewed that ruling and have found it to be partially in error. The bear squeeze toy was properly classified. The correct classification for the toy bicycle is as follows.

FACTS:

The toy bicycle, imported from Taiwan, is designed to be used by children 2-3 years of age. It comes in both a girls' and boys' model. Other features include heavy duty construction, 10 inch mag wheels, training wheels, a soft padded adjustable seat, a front wheel with ball bearings and soft mushroom style grips. You state that the front hub is not free wheeling, meaning that the child would have to pedal consistently to continue the

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forward motion. You also claim that the training wheels are required to keep the bike in an up-right position because the two large wheels are too small to support the bicycle in a vertical position unless tremendous speed is achieved. Given the age and size of the child who would use this bike, it is unlikely that such speed could be achieved, let alone maintained.

ISSUE:

Whether the toy bicycle is classifiable in heading 8712, HTSUSA, as a bicycle and other cycle, not motorized or in heading 9501, HTSUSA, as a wheeled toy designed to be ridden by children.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) taken in their appropriate order provide a framework for classification of merchandise under the HTSUSA. Most imported goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative section or chapter notes. The Explanatory Notes (EN's) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI's.

The headings to be considered in this case are 8712 providing for bicycles and other cycles and 9501 providing for wheeled toys designed to be ridden by children. Note 5 to Chapter 87 states that heading 8712 includes all children's bicycles and other children's cycles fall in heading 9501. The EN's to 8712 indicate that the heading includes:

...non-motorised cycles, i.e., pedal-operated vehicles equipped with one or more wheels (e.g., bicycles (including those for children), tricycles and quadricycles).

The heading includes, in addition to cycles of conventional design, various specialised types such as the following:...

(5) Bicycles equipped with a wheeled balancing- support fitted to a hub of the rear-wheel.

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Conversely, Note 1(o) to Chapter 95 states that the chapter does not cover children's bicycles of heading 8712. The EN's to 9501 indicate that the heading includes:

(A) Wheeled toys designed to be ridden by children.

These articles are usually designed for propulsion by the child itself either by means of pedals, hand levers or other simple devices which transmit power to the wheels through a chain or rod, or, as in the case of certain scooters, by direct pressure of the child's foot against the ground....

These toys include:

(1) Children's tricycles and the like, but excluding bicycles of heading 87.12.

We reiterate, specifically, that the training wheels are required in order to keep this toy bicycle in an up-right position since the two large wheels are too small to support the bicycle in a vertical position. It is unlikely that a pre- school age child would achieve the tremendous speed necessary to ride the toy bicycle without the training wheels. In addition, we note that the front hub of this toy bicycle is not free wheeling, meaning that a child could not "coast" while riding, but would have to pedal consistently to continue the forward motion. For these reasons, the toy bicycle is not classifiable as a bicycle included in heading 8712, but fits the description of a wheeled toy classifiable in heading 9501. Since the article is not chain-driven, the appropriate subheading is 9501.00.40.

HOLDING:

The toy bicycle is classifiable in subheading 9501.00.40, HTSUSA, as "Wheeled toys designed to be ridden by children (for example, tricycles, scooters, pedal cars);...Wheeled toys designed to be ridden by children and parts and accessories thereof: Other." The general column one rate of duty is 3.6 percent ad valorem.

NYRL 850877 is modified accordingly.


Sincerely,

John Durant, Director
Commercial Rulings Division