CLA-2 CO:R:C:F 957097 GGD
Mr. Gerald A. Wingrove
Lindum House
27 North Street
Digby
Lincoln LN4 3LY, England
RE: Reconsideration of New York Ruling Letter (NYRL) 899263;
Hand-Built, Reduced-Size, Model Cars
Dear Mr. Wingrove:
This letter is in response to your request of August 23,
1994, for reconsideration of NYRL 899263, issued July 19, 1994,
concerning the classification under the Harmonized Tariff
Schedule of the United States (HTSUS), of hand-built model cars
to be imported from the United Kingdom. Photographs of an actual
1924 Hispano Suiza and your scale model of that car, as well as
other photographs and color illustrations were submitted with
your request.
FACTS:
In NYRL 899263, issued July 19, 1994, Customs classified the
merchandise in subheading 9503.90.7020 (now 9503.90.0050),
HTSUSA, the provision applicable to model cars not incorporating
a motor, that are made to a scale of the actual article at a
ratio of other than 1 to 85 or smaller, with an applicable duty
rate of 6.8 percent ad valorem. The model cars to be imported
are constructed to a scale of 1 to 15, and are hand-made from
scratch, one or two units at a time, from brass, copper,
aluminum, etc. sheets and bars. Each model measures from 12 to
15 inches in length and may feature complete details of the
engine, chassis, and body interior, in which case the model could
be priced as high as $15,000, depending on the actual article -2-
represented. The models are described as being non-working, very
fragile, historically accurate, and are said to be created for
educational display purposes only, not for recreational use.
ISSUE:
Whether the articles should be classified in subheading
9023.00.0000, HTSUSA, the provision for "Instruments, apparatus
and models, designed for demonstrational purposes (for example,
in education or exhibitions), unsuitable for other uses, and
parts and accessories thereof;" or in subheading 9503.90.0050
(formerly 9503.90.7020), HTSUSA, the provision for "Other
toys...and accessories thereof: Other: Other: Other, Model
airplanes, model boats and other models: Other."
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRIs). The systematic
detail of the harmonized system is such that virtually all 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. 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 may then
be applied. The Explanatory Notes (ENs) to the Harmonized
Commodity Description and Coding System, which represent the
official interpretation of the tariff at the international level,
facilitate classification under the HTSUS by offering guidance in
understanding the scope of the headings and GRIs.
Among a wide array of other items, heading 9023, HTSUS,
covers models that are designed for demonstrational purposes, but
are unsuitable for other uses. The American College Dictionary
(1970), defines "demonstration" in pertinent part as "3. a
description or explanation, as of a process, given with the help
of specimens or by experiment. 4. act of exhibiting and
explaining an article or commodity by way of advertising it....
8. Math. a logical presentation of the way in which given
assumptions imply a certain result. --demonstrational, adj."
(emphasis in original)
The ENs to heading 9023 indicate that the heading includes
small scale demonstrational models (of aircraft, ships, machines,
etc.) generally of metal or wood (e.g., for advertising purposes,
etc.). The ENs also relate that articles that are designed for
demonstrational and recreational purposes (e.g., certain model
sets of mechanical parts; mechanical or electrical toy -3-
locomotives, aircraft, etc.) are excluded from the heading. The
American College Dictionary (1970), defines "recreation" in
pertinent part as "a pastime, diversion, exercise, or other
resource affording relaxation and enjoyment."
Heading 9503, HTSUS, covers other toys, i.e., all toys not
included in headings 9501 and 9502. Although the term "toy" is
not defined in the tariff, the ENs to chapter 95 indicate that a
toy is an article designed for the amusement of children or
adults. The American College Dictionary (1970), defines
"amusement" as "1. state of being amused; enjoyment. 2. that
which amuses; pastime; entertainment. --Syn. 1. recreation,
frolic, pleasure, merriment. 2. diversion, game." Thus, the term
"amusement" is nearly synonymous with "recreation." Heading 9503
includes reduced-size ("scale") models and similar recreational
models, whether working or not. The ENs to heading 9503 indicate
that the models covered by the heading are the kind mainly used
for recreational purposes, for example, scale models of boats,
aircraft, trains, vehicles, etc., and kits of materials and parts
for making such models.
Mindful of the foregoing definitions, the guidance provided
by the ENs, and the language of the tariff, we conclude that if
the model cars are designed for demonstrations, and have no other
use or recreational purpose, they are classifiable in heading
9023, HTSUS. If the model cars are designed for both
recreational and demonstrational purposes, or are mainly used for
recreational purposes, they are classifiable in heading 9503,
HTSUS.
You essentially contend that, because the model cars are
non-working, fragile, intended only for display, and (implicitly)
expensive, they are demonstrational, and are devoid of any
recreational aspect. We disagree. Model cars classifiable in
heading 9503 may also be non-working, be intended only for
display, and need not be designed to withstand manual play or
other physical contact after construction has been completed.
The term recreation does not necessarily connote roughhousing,
and more accurately describes the relaxing and enjoyable pastime
that many individuals find in collecting and/or simply viewing
model cars such as these. On the other hand, we find the
demonstrational properties of the model cars to be quite limited.
They are not used to advertise, train, illustrate complex
functions, or provide a glimpse of what hands-on experience with
the actual article represented would be like. In light of the
above, we find that the merchandise is properly classified in
subheading 9503.90.0050, HTSUSA. -4-
HOLDING:
The hand-built, reduced-size, model cars are properly
classified in subheading 9503.90.0050 (formerly 9503.90.7020),
HTSUSA, the provision for "Other toys...and accessories thereof:
Other: Other: Other, Model airplanes, model boats and other
models: Other." The applicable duty rate for entries made
through December 31, 1994, was 6.8 percent ad valorem. Under the
tariff effective January 1, 1995, the rate has been reduced to
free.
NYRL 899263, dated July 19, 1994, is hereby affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division