CLA-2:CO:R:C:G 083968 JAS
Donald L. Rosati
Volkswagen of America, Inc.
P.O. Box 3951
Troy, Michigan 48007-3951
RE: Fuel Line Repair Kit
Dear Mr. Rosati:
In your letter of March 7, 1989, to the Area Director of
Customs, New York Seaport, you inquire whether components
packaged together for use in repairing defective automotive
fuel lines constitutes items in a set put up for retail sale
for tariff purposes. Our ruling follows.
FACTS:
At your request, we will only consider whether these kits
constitute goods put up in sets for retail sale. Neither the
classification of individual components nor, to the extent
relevant, identification of the component which gives each kit
its essential character is in issue.
The merchandise in question is the Audi turbo engine kit.
Each kit is individually packaged and contains a variety of
retaining clips, hoses, clamps, brackets, connectors, and tee
fittings, as well as fuel line covers and valve covers with
their gaskets. The kits will be distributed through
Volkswagen of America, Inc. to Audi dealers for their use in
connection with a fuel system modification recall campaign.
You state that Volkswagen AG, West Germany, will invoice
Volkswagen of America, Inc. directly on a per-kit basis. The
components of each kit (plus hood mat and fuel injector O-
rings which are not parts of the kit) are installed in a
recalled vehicle free of charge to the owner. Unused kits are
returned to Volkswagen of America. Dealers are invoiced only
for kits retained in inventory.
- 2 -
You maintain that because each kit consists of at least
two different articles classifiable in different headings,
contains articles put up together to meet a particular need,
and is in a manner suitable for retail sale, it constitutes
goods put up in sets for retail sale. Under General Rule of
Interpretation (GRI) 3(b), Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), such goods are classifiable
according to the component which gives them their essential
character.
ISSUE:
Are the kits at issue goods put up in sets for retail
sale under the HTSUSA?
LAW AND ANALYSIS:
GRI 3(a), HTSUSA, states in part that when two or more
headings each refer to part only of the items in a set put up
for retail sale, those headings are to be regarded as equally
specific in relation to those goods. GRI 3(b) states in part
that goods put up in sets for retail sale, which cannot be
classified by reference to 3(a), shall be classified as if
they consisted of the component which gives them their
essential character.
Relevant Explanatory Notes, which provide guidance in the
interpretation of the Harmonized Commodity Description and
Coding System at the international level, indicate that the
term "goods put up in sets for retail sale" means goods that
(1) consist of at least two different articles which are,
prima facie, classifiable in different headings, (2) consist
of products or articles put up together to meet a particular
need or carry out a specific activity, (3) and are put up in a
manner suitable for sale directly to users without repacking.
There is no requirement that sets actually be sold at
retail. Fuel line modification kits delivered without
repacking to Audi dealers who, as the ultimate consumers, will
install the components on recalled cars without charge to the
owners, are put up in a manner suitable for sale directly to
users.
- 3 -
HOLDING:
In the described circumstances, fuel line modification
kits qualify as goods put up in sets for retail sale for
purposes of GRI 3(b), HTSUSA.
Sincerely,
John Durant, Director
Commercial Rulings Division