CLA-2 CO:R:C:M 951610 KCC
District Director
U.S. Customs Service
511 N.W. Broadway Federal Building
Portland, Oregon 97209
RE: Protest No. 2904-92-100040; spoke discs; other bicycle
parts; 8714.99.50; parts of derailleurs
Dear Sir:
This is in response to the Application for Further Review of
Protest No. 2904-92-100040, dated February 26, 1992, which
pertains to the tariff classification of spoke discs under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The articles under consideration are bicycle spoke discs.
Upon importation, the entry of the spoke discs was liquidated
under subheading 8714.99.90, HTSUS, which provides for "Parts and
accessories of vehicles of headings 8711 to 8713...Other...
Other...Other."
The protestant, Burley Design Co-op, contends that the spoke
discs are properly classified under subheading 8714.99.50, HTSUS,
which provides for "Parts and accessories of vehicles of headings
8711 to 8713...Other...Other...Derailleurs and parts thereof",
and subheading 9902.87.14, HTSUS, which provides duty-free
treatment for "...front and rear derailleurs, shift levers,
cables and casings for derailleurs...and parts of all the
foregoing (provided for in subheading 3917.32.00 or heading 7312
or 8714)." The protestant states that "the spoke disc is a very
significant part of a derailleur system. Its function is to
protect the derailleur from becoming entangled in the bicycle
spokes. In a very real sense it is part of what makes the
derailleur work properly...."
ISSUE:
Are the spoke discs classified under subheading 8714.99.50,
HTSUS, as a part of a derailleur system, or under subheading
8714.99.90, HTSUS, as other parts of a bicycle?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, 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...according...to the
following provisions."
The appropriate heading for the spoke disc is heading 8714,
HTSUS, which provides for "Parts and accessories of vehicles of
headings 8711 to 8713." The spoke disc is principally, if not
solely, used as a bicycle part. See, Note 3 to Section XVII,
HTSUS. Bicycles are classified within heading 8712, HTSUS.
Therefore, the spoke disc is classified within heading 8714,
HTSUS. The issue is whether the spoke disc is a part of a
derailleur or a part of a bicycle.
A derailleur is a device which derails or moves something
from one position to another. In this case the moving action is
on the chain. A bicycle has two derailleurs, one moves the chain
from one to another of the freewheel gears and a second moves the
chain from one to another of the chainwheels up front. Although
different bicycle models may have different configurations of
derailleurs, a derailleur is generally composed of a body
assembly, mounting bolt, washer, mounting nut, cable anchor
clamp, cable anchor bolt, adjusting screw, outer cage, pulley
cover, pulley bushing, pulley, inner cage, pulley axle bolt, cage
tension nut, shim, bushing, spring retainer, spring and cage stop
pin.
A spoke disc does not enhance the use of the derailleur and
is not specifically a part or accessory of a derailleur. The
spoke disc is not an operational part or accessory of the
derailleur, as it does not help in the function of moving the
chain from one of the freewheel gears to another, nor from one of
the chain wheels to another. A review of bicycle books such as,
Bicycle Today, and The 1990 Taiwan Bicycle Directory, reveal that
many derailleurs do not even have a spoke disc. The spoke disc
is not properly classified in subheading 8714.99.50, HTSUS.
Therefore, classification under the duty-free subheading
9902.87.14, HTSUS, is inappropriate.
The spoke disc is a part or accessory of a bicycle, as it
provides protection to the bicycle wheel and spokes. Therefore
the spoke disc is properly classified under subheading
8714.99.90, HTSUS.
HOLDING:
The spoke discs are properly classified under subheading
8714.99.90, HTSUS, which provides for "Parts and accessories of
vehicles of headings 8711 to 8713...Other...Other...Other." This
protest should be denied in full. A copy of this decision should
be attached to the Customs Form 19 and provided to the protestant
as part of the notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division