HQ H260566 July 7, 2016
CLA-2
OT:RR:CTF:TCM H260566 PTM
TARIFF NO: 9705.00.00
Port Director
U.S. Customs & Border Protection
Los Angeles International Airport
11099 South La Cienega Blvd.
Los Angeles, CA 90045
ATTN: L.M. Jimenez, Import Specialist
RE: Application for Further Review of Protest Number 2720-14-100702; Tariff Classification of one 1955 Maserati 300S, with Chassis No. 3056
Dear Port Director:
This letter is in response to the above-referenced protest and Application for Review (“AFR”) filed on behalf of Sarra LLC (“Sarra”), dated July 10, 2014. The protest is against U.S. Customs & Border Protection’s (“CBP”) classification of the entry of one car, a 1955 Maserati 300S under subheading 8703.23.0064 of the Harmonized Tariff Schedule of the United States ("HTSUS”). A sample was not provided.
FACTS:
Maserati is an Italian luxury vehicle manufacturer established in 1914, in Bologna. Since then, Maserati has played a consistently important role in the history of sports car culture and its development. Maserati was one of the first participants in Formula One racing events, which is the highest class of single-seat auto racing that is sanctioned by the Federation Internationale de l’Automobile (FIA).
Following success in Formula One events, Maserati set out to create a larger engine sports car capable of winning events in the newly-created World Sports Car Championship. The Maserati 300S model was designed to fill that role, and it made its competition debut in 1955. The 300S proved very successful in international sports car events. It won the 1000 km races at the Nürburgring in 1956 and Buenos Aires in Argentina. Other major victories included the 1956 Venezuelan Grand Prix, the Australian Tourist Trophy and the Nassau Trophy. Only twenty-six model 300S Maseratis were made, plus four spare engines.
The merchandise that is the subject of this protest is a 1955 model Maserati 300s with chassis number 3066, which was later renumbered to 3056 (herein “Maserati 3056”). It was completed in the Maserati factory on June 20, 1955. The vehicle is equipped with an in-line six cylinder engine, a drivetrain consisting of an aluminum body on a tubular frame, front and rear suspension and a five-speed manual transmission. Maserati 3056 was acquired by a notable Spanish driver, Francisco “Paco” Godia, on April 14, 1956. Mr. Godia would participate in 25 Grand Prix races over 23 racing seasons. In the Maserati 3056, Mr. Godia would participate in thirteen documented races. His most notable triumph in the Maserati 3056 was finishing first in the Coupe du Salon Montlhery race on October 7, 1956. That race is considered to be an infamous race, in which one driver crashed and was seriously injured and another driver, Benoit Musy, was killed after losing control of his Maserati 200S. From time to time, other notable drivers of the day would drive the Maserati 3056 on Mr. Godia’s behalf. For example, Carroll Shelby drove the car in the March 23, 1957 Sebring 12h race, and Stirling Moss and Juan Manuel Fangio helped pilot the car in the May 26th, 1957 1000 km Nürburgring race.
Paco Godia himself was a man of notoriety and success: a true man of leisure. Born in 1921 in Barcelona, he is described as a brilliant businessman, passionate art collector and the personification of the gentleman drivers from the golden age of motor sports. Godia participated in racing at its highest level, and his record was extraordinary given that he was not a professional driver. His family formed the Francisco Godia Foundation in 1999. The foundation held exhibitions to display various pieces of his art collection.
Mr. Godia sold the car in 1958 to Roberto Bonomi of Argentina, who also used the car in several races of note. His best finish was second in the 500 Mille Rafaela on September 6, 1959. After several changes in ownership, the car was purchased by Martmut Ibing to become part of his collection of race cars. He entered the Maserati 3056 in various historic events, including the Mille Miglia Storica and the 2000 Historic Grand Prix of Monaco. The car was purchased in 2012 by the current owner for $8 million dollars.
On August 5, 2013, Sarra filed entry on the Maserati 3056 with a declared classification of 9705.00.0070 HTSUS. On February 21, 2014, CBP issued a request to Sarra for historical and technical data relating to the vehicle, including a list of the race drivers and winnings for the vehicle. Sarra responded by providing various historical data and a spreadsheet detailing the various races and drivers associated with the vehicle. On April 18, 2014, CBP issued a Notice of Action notifying Sarra that the car’s historical significance was insufficient to merit classification in heading 9705, HTSUS, as an article of historical significance. On May 8, 2014, CBP liquidated the entry and classified Maserati 3056 as an automobile under heading 8703, HTSUS and rate-advanced the entry. The instant protest was filed on July 10, 2014.
ISSUE:
Whether Maserati 3056 should be classified as a motor car of heading 8703, or whether it is a collector’s item in heading 9705, HTSUS.
LAW AND ANALYIS:
Initially, we note that this matter is protestable under 19 U.S.C. § 1514(a) (2) as a decision on classification. The protest was timely filed, within 180 days of liquidation for entries made on or after December 18, 2004. See Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2) (B)(ii), (iii)(codified as amended at 19 U.S.C. § 1514 (c) (3) (2006)).
Further Review of the protest is properly accorded to Sarra pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with prior CBP rulings. Specifically, it alleges that the decision is inconsistent with Headquarters Ruling (“HQ”) 961279 (Nov. 5, 1998), New York Ruling (“NY”) L83265 (Mar. 14, 2005), and NY N022556 (Feb. 5. 2008).
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs). GRI 1 requires that classification be determined first according to the terms of the heading of tariff schedule and any relative section or chapter notes, and unless otherwise required, according to the remaining GRIs taken in their appropriate order.
The HTSUS provisions under consideration in this case are as follows:
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars:
* * *
9705 Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest:
Note 4 to Chapter 97 states, in relevant part:
Subject to notes 1 through 3 above, articles of this chapter are to be classified in this chapter and not in any other chapter of the tariff schedule.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are generally indicative of the proper interpretation of these headings. See T.D. -80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The EN 97.05, 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:
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. 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.
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. See HQ 088031, dated October 8, 1991 (classifying jewelry belonging to the Duke and Duchess of Windsor in heading 9705, HTSUS).
Pursuant to the ENs, articles of “historical interest” classified in heading 9705, HTSUS, are done so by virtue of their rarity, age, connection to a specific historical event, or era, or point in time, so long as they are the remains of human activity suitable for the study of earlier generations. See HQ W968392, dated February 9, 2007 (classifying a stone ushabti, described as being a stone “Ushabti of Neferhotep” in heading 9705, HTSUS). By way of example, the ENs state that this could include mummies, sarcophagi, weapons, objects of worship, articles of apparel, articles which have belonged to famous persons. See EN 97.05(B)(1). But in using the term, “such as,” preceding the list in the ENs, it is obvious that an object need not be all of those exemplars at once. Rather, these are individual examples. Hence, while “articles belonging to a famous person” might present difficulty administratively, nothing in the list mandates that an article must have a nexus to a historical time and have belonged to a famous person. It is simply an example along with others of what might constitute “articles … suitable for study.” See HQ 088031, dated October 8, 1991 (“Articles that have “belonged to famous persons” is susceptible to a broad interpretation that would be impossible to administer” and thus should be judged on a case-by-case basis, considering all relevant factors); See also HQ H213716, dated June 1, 2015 (classifying ice hockey memorabilia in heading 9705, HTSUS).
Typically, motor vehicles are mass-produced for commercial consumption. As such, they typically would not fall under heading 9705 as a collector’s piece. However, in the circumstances where a care is very rare and satisfies the conditions for items of historical significance, then automobiles may be considered collectors’ items for the purposes of tariff classification. For example, in HQ 962234, dated July 17, 2000, the legacy Customs Service classified a 1936 Bugatti T57 tank/race car that was designed by Ettore Bugatti and was one of three built at the Bugatti automobile factory in Molsheim, France. The car won several races and was later stored in a museum after its victories. Ultimately, Customs classified the 1936 Bugatti T57 tank/race car in heading 9705, HTSUS. Similarly, in NY L83265, dated March 14, 2005, CBP classified four one-of-a-kind Ferraris individually valued between $4 million and $10 million. These cars had been built and owed by the Ferrari family and had been driven by famous racing car drivers in historical events. NY L83265 took note of the individual cars’ value and uniqueness in concluding that their rarity qualified them as goods of heading 9705, HTSUS.
Where a vehicle is merely noteworthy but not of historical significance, CBP will not classify it in heading 9705, HTSUS. In HQ 961279 (Nov. 5, 1998), legacy Customs denied duty-free treatment under heading 9705 to two vehicles: a 1929 Bentley Supercharger (Blower) 4 1/2 liter racing car and a 1936 Mercedes-Benz 500K “Special Roadster.” In support, Customs noted that “[t]here is no claim of a specific incident or occurrence involving these automobiles in a significant historical event and there is no specific claim that these automobiles ‘belonged to famous (historical) persons.’” See also, NY N022556 (Feb. 5, 2008). By contrast, the instant Maserati 3056 was driven in a variety of well-known races such as the Coupe du Salon Montlhery, Sebring and Nürburgring. Further, it was previously owned and driven by Paco Godia, a well-known driver and man of the arts. From time to time, the Maserati 3056 was driven by other famous drivers such as Stirling Moss and Juan Manuel Fangio. Subsequent owners of the car also raced it and entered it in historical events such as the Mille Miglia Storica and the 2000 Historic Grand Prix of Monaco. Furthermore, there were only twenty six 300s model Maseratis ever produced, demonstrating that it is exceedingly rare. The unique and historical nature of the car is further evidenced by its extraordinary selling price of $8 million dollars. Therefore, we find that the Maserati 3056 is a collectors’ piece of heading 9705 HTSUS.
HOLDING:
By application of GRI 1, and pursuant to Note 4 to Chapter 97, the subject Maserai 3056 is classified in heading 9705, HTSUS. It is specifically provided for under subheading 9705.00.00, HTSUS, which provides for, “Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest.” The column one, general rate of duty is free.
Since classification of the merchandise as indicated above will result in a lower rate of duty as claimed, you are instructed to GRANT the protest.
You are to mail this decision, together with the CBP Form 19, to the Protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision Regulations and Rulings of the Office of International Trade will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division