CLA-2 RR:CR:GC 960950 RTR
Mr. Donnie B. Turbeville,
Customs Coordinator
BMW
1400 Highway 101 South
Greer, South Carolina 29651
RE: NY A89017 revoked; leather cut-to-fit pieces for automotive
gear shift lever knob; parts, accessories, heading 4205.00,
HTSUS.
Dear Mr. Turbeville:
This is in reference to your letter of July 16, 1997,
requesting reconsideration of NY A89017, concerning the
classification of cut-to-shape leather pieces that are used for
gear shift lever knobs.
Pursuant to section 625(c)(1)), Tariff Act of 1930 (19
U.S.C. 1625(c)(1), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, Pub L. . 103 - 182, 107 Stat. 2057, 2186
(1993), notice of proposed revocation of NY A89017 was published
on December 10, 1997 in the Customs Bulletin, Volume 31, Number
50.
In NY A89017, issued to Nippon Express, U.S.A., Inc., on
November 12, 1996 on behalf of DAA-Draexlmaier Automotive of
America, the Area Director of Customs, New York determined that
two pieces of cut-to-shape leather, which, when sewn together,
fit a gear shift lever, were classifiable under subheading
8708.99.67, Harmonized Tariff Schedule of the United States
(HTSUS), which provides for parts and accessories of the motor
vehicles of headings 8701 to 8705; other parts and accessories;
other; other; other parts for power trains. You contend that
such leather pieces are also used for door panels, air bag
coverings, etc., and are classifiable in heading 4205, HTSUS,
which provides for other articles of leather, or of composition
leather.
FACTS:
The articles subject to NY A89017 consist of two pieces of
soft, black leather; one is crown-shaped, measuring 4 inches L x
5-3/10 inches W; the other is shaped like an exclamation point
and measures 4-3/8 inches L x 1-3/8 inches W. Both are cut-to-shape to fit the knob of the gear shift lever of BMW automobiles.
They are sewn around the gear shift lever after importation.
There are at least three types of gear shift lever knobs
available on BMW automobiles: leather, polished teak, and rubber.
Although there is an aesthetic difference between them and
individual BMW customers might choose one above another on this
basis, none enhances the performance of, nor is an essential
constituent or component of the power train. Thus, when sewn
around the gear shift lever, the effect of the leather pieces is
aesthetic, not functional.
ISSUE:
Whether the leather pieces are classifiable under heading
4205, HTSUS, as "other articles of leather or of leather
composition", or as "other parts of power trains" under heading
8708, HTSUS, or as "other parts and accessories" under heading
8708, HTSUS.
LAW AND ANALYSIS:
Merchandise is classifiable under the HTSUS in accordance
with the General Rules of Interpretation (GRIs). GRI 1 states in
part that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the official interpretation of
the Harmonized System. While not legally binding on the
contracting parties, and therefore not dispositive, the ENs
provide a commentary on the scope of each heading of the
Harmonized System and are thus useful in ascertaining the
classification of merchandise under the System. Customs believes
the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg.
35127, 35128 (Aug. 23, 1989).
The tariff provisions under consideration are as follows:
4205.00 Other articles of leather or of composition
leather:
Other
4205.00.80 Other
* * * *
8708 Parts and accessories of the motor vehicles
of headings 8701 to 8705
Other parts and accessories
8708.99 Other
Other
8708.99.67 Other parts for
power trains
8708.99.80 Other
You suggest that the merchandise is classifiable in
subheading 4205.00.80, HTSUS, which provides for articles of
leather or of composition leather: other: other. This is a
basket provision covering leather goods not enumerated elsewhere
in the HTSUS. Customs believes that the merchandise is properly
classifiable in subheading 8708.99.80, HTSUS, which specifically
covers parts and accessories for motor vehicles. This, too, is a
basket provision, but it is preferable to subheading 4205.00.80
for the reasons stated below.
Although the merchandise is not specifically described in
chapters 4205 or 8708, HTSUS, or in the ENs, EN 87.08 (at pages
1552, 1553) provides a two-part test for "parts" and
"accessories," which brings the leather pieces squarely into the
purview of heading 8708, HTSUS. According to EN 87.08, this
heading covers parts and accessories of motor vehicles of
headings 87.01 to 87.05, provided the parts and accessories
fulfill both of the following conditions: (i) they must be
identifiable for use solely or principally with the above-mentioned vehicles; and (ii) they must not be excluded by the
provisions to the Notes to Section XVII.... Further, parts and
accessories of this heading include: ... (M) Control equipment,
for example, steering wheels, steering columns, and steering
boxes, steering axles; gear change... levers (emphasis added)...
Webster's II New Riverside University Dictionary defines a
"part" as a "component capable of being separated from the
system"; a "component" is defined as a "constituent, as an
element of a system"; a "constituent" is defined as that which is
"necessary in the formation of the whole" (emphasis added).
Under these definitions, in order to be a "part", an item must be
necessary to the formation of the power train. The leather
pieces are not necessary because both rubber and teak covered
gear shift lever knobs can be substituted for the leather pieces
with no diminution in performance. Thus, they are not "parts".
The term "accessory" is not defined in either the HTSUS or
the ENs. An accessory is generally an article which is not
necessary to enable the goods, with which it is used, to fulfill
their intended function. Accessories are of secondary
importance, not essential in and of themselves. They must,
however, somehow contribute to the effectiveness of the principal
article (e.g., facilitate the use or handling of the principal
article, widen the ranges of its uses, or improve its operation).
An accessory must be identifiable as being intended solely or
principally for use with a specific article.
Customs believes that the power train of a motor vehicle
extends from the engine through the transmission and differential
through the power axles. The gear shift lever knob, which
includes the sewn-on leather pieces, is a component of the power
train. However, since both teak and rubber lever covers can be
substituted without diminution in power train performance, the
merchandise is not essential to the operation of the automobile.
While they are of secondary importance, the leather pieces
contribute to the effectiveness of the principal article (the
power train) because they protect the driver's hand from shock
and vibration. Owing to the fact that they are cut-to-fit, the
leather pieces can only be used for the gear shift levers of
automobiles. Likewise, cut-to-fit leather pieces for door
panels, air bag coverings, etc., can only be used for
automobiles.
The leather pieces satisfy the first requirement of the two-part test of EN 87.08 because, as stated above, they are suitable
for use solely or principally with BMW automobiles. They satisfy
the second requirement because there is no exclusion which covers
the subject merchandise in the Notes to Sections XIII or XVII,
HTSUS, or in the Notes to chapters 42 or 87, HTSUS. Thus, for
tariff purposes, the leather pieces are accessories under heading
8708, HTSUS.
Under Additional U.S. Rule of Interpretation 1(c), HTSUS, a
provision for parts of an article covers products solely or
principally used as a part of such articles, but a provision for
"parts" or "parts and accessories" shall not prevail over a
specific provision for such part or accessory. Thus, only a
specific provision for a part will prevail over a "parts and
accessories" provision. It is an accepted rule of classification
that a basket provision is not specific for tariff purposes.
Subheading 4205.00.80, HTSUS, is not a specific provision because
it is a basket provision. For this reason, it does not prevail
over subheading 8708.99.80, HTSUS.
HOLDING:
Under the authority of GRI 1 and Additional U.S. Rule of
Interpretation 1(c), HTSUS, the cut-to-fit leather pieces are
provided for in heading 8708, HTSUS. They are classifiable in
subheading 8708.99.80, HTSUS, as other parts and accessories of
the motor vehicles of headings 8701 to 8705. The applicable duty
rate is 2.7% ad valorem.
EFFECT ON OTHER RULINGS:
NY A89017, dated November 12, 1996, is hereby revoked. In
accordance with 19 U.S.C. 1625(C)(1), this ruling will become
effective 60 days after its publication in the Customs Bulletin.
Publication of rulings or decisions pursuant to 19 U.S.C.
1625(C)(1) does not constitute a change of practice or position
in accordance with section 177.10(c)(1), Customs Regulations (19
CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division