CLA-2 RR:TC:FC 960618 JGB
Joel K. Simon, Esq.
Serko & Simon LLP
Counselors at Law
One World Trade Center
Suite 3371
New York, New York 10048
RE: Household Goods of the Duke and Duchess of Windsor
Dear Mr. Simon:
This is in response to your letter of May 12,
1997, concerning the classification of a collection of
personal articles that once belonged to the Duke and
Duchess of Windsor. Your letter is on behalf of your
client, Mr. Mohamed Al-Fayed or his designee, the
prospective importer.
FACTS:
The merchandise consists of what would appear to be
the bulk of the personal possessions and household
articles of the late Duke and Duchess of Windsor. The
articles are summarily described on an inventory
included with the ruling request as Attachment A,
comprising some 1939 pages, with approximately 9 line
entries per page. As a general description, the
merchandise includes: books
and manuscripts; photographs; military insignia;
regimental buttons, medallions, badges, brooches,
ceremonial swords; jewelry; accessories to ceremonial
costumes (e.g., Highland dress); rugs; personal
stationery; paintings; ceramics and porcelain;
phonograph
records; household furnishings; musical instruments,
and silver articles. If entered without authentication
or information of their prior ownership, these articles
would be classified in perhaps a hundred different
headings of the Harmonized Tariff Schedule of the
United States Annotated (HTS). The importer claims
that the merchandise should be classified as articles
of historical interest under subheading 9705.00.0090,
HTS. Articles so classified are entitled to duty-free
entry.
The inventory of the merchandise at issue includes
some articles containing ivory and other substances,
the importation of which would be in violation of the
Endangered Species Act of 1973 and the African Elephant
Conservation Act of 1988. You have assured Customs,
however, that these articles will not be imported.
ISSUE:
Whether the subject articles are classified as a
collection or collectors' pieces of historical interest
under subheading 9705.00.0090, or in the headings
applicable to the various articles.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) set
forth the legal framework in which merchandise is to be
classified under the HTS. GRI 1 requires that
classification be determined first according to the
terms of the headings of the tariff and any relative
section or chapter notes and, unless otherwise
required, according to the remaining GRI's taken in
their appropriate order.
The competing provisions in this case are:
(a) 9705.00.0090, HTS, Collections and collectors'
pieces of zoological, botanical, mineralogical,
anatomical, historical, archeological, paleontological, ethnographic or numismatic interest,
Other.
(b) all the other headings, too numerous to mention
in full, if heading 9507 is inapplicable (e.g.,
heading 4817 for stationery, heading 4901 for printed books and brochures, heading 6203 for mens' woolen
trousers, heading 7116 for jewelry).
Upon the examination of the nature and detail of
the inventory, along with the attestations of
authenticity, the items at issue can be classified by
reference to GRI 1. It is our determination that the
merchandise is properly classifiable as collections or
collector's pieces of historical interest under
subheading 9705.00.0090, HTS.
First, we note that if these items qualify as
collectors' items of historical interest under chapter
97, HTS, Note 4(a) to Chapter 97, HTS, states that
"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."
Thus, the primary issue to be determined is whether
these items are classifiable in Chapter 97, HTS. The
Explanatory Notes (ENs), which constitute the official
interpretation of the HTS at the international level,
state in EN 97.05, in pertinent part, as follows:
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:
(1) Articles being the material remains of human
activity suitable for the activities of earlier
generations, such as: mummies, sarcophagi, weapons, objects of worship, articles of apparel, articles
which have belonged to famous persons.
The argument for inclusion of the articles in Chapter
97 focuses on the phrase "articles which have belonged
to famous persons." In Headquarters Ruling Letter
(HRL) 088031, dated October 8, 1991, relied on here,
the importer discussed at length the fame and
historical significance of the Duke and Duchess of
Windsor and provided material to support this
discussion. In addition, the importer described the
close relationship of the jewelry of that ruling to the
Duke and Duchess and touches upon the historical
aspects of the jewelry, such as the inscriptions that
appear on some of the items. Having previously
permitted Chapter 97 classification of some of the
jewelry belonging to the Duke and Duchess, we are
obviously guided by that precedent to allow additional
jewelry belonging to the same people to be likewise
classified. The only remaining question is whether the
balance of household articles and personal possessions
can be properly classified along with the jewelry.
Articles that have "belonged to famous persons" is
susceptible to a broad interpretation that would be
impossible to administer. In attempting to define the
scope of this provision, we have received no guidance
from the relevant legislative history or the working
draft and notes of the Customs Cooperation Council
(CCC).
We must, therefore, look to the Explanatory Notes to
see if they shed any light on the scope of the
provision.
In examining Explanatory Note 97.05 (B), the first
thing we notice is that it reads more like a set of
guidelines rather than as a strict, all inclusive or
exclusive rule as to what constitutes an item of
historical interest. The phrase "for example" which
directly precedes "Articles being the material remains
of human activity suitable for the study of earlier
generations" indicates that the drafters did not intend
that only such items qualify. The phrase "such as"
which precedes the list including "articles which have
belonged to famous persons" indicates that this list is
merely a list of examples, which may or may not qualify
for Chapter 97. Thus, since there is no strict rule,
items such as this must be examined on a case by case
basis, considering all the factors involved. In this
case, following HRL 088031, we have determined that
there are many factors which favor inclusion of all the
articles in Chapter 97:
1. The articles belonged to famous people. The Duke
and Duchess of Windsor were quite famous in the United
States, England and around the world.
2. These individuals are not only famous, but are
historically significant; their actions concerning
abdication of the crown by the Duke and their
involvement in the politics of the time was considered
newsworthy, affected many lives and has had a long term
effect on human affairs.
3. The items indicate a markedly increased value
because of their historical significance. The
affidavit provided by the importer from a Senior Vice
President of Sotheby's, Inc., states that in his
opinion "the prices likely to be achieved upon the sale
at auction of these items will be significantly in
excess of their intrinsic value" and that the "fact" of
the goods' prior ownership makes them "unique
collectors' items."
4. As noted in the prior ruling the jewelry was not
just "owned" by the Duke and Duchess but was very
closely associated with them. They were well known for
their jewelry collection (articles have been published
concerning this subject) and the Duke personally
designed many of the pieces, some of which exhibit his
personal taste. Jewelry design was a hobby of his.
5. The book collection is of historical interest by the
fact of what titles would have been retained and
presumably read by the Duke and Duchess, for example,
most of the works of Winston Churchill.
6. The collection of papers and letters, likewise, are
of historical significance. It might be of historical
interest, for example, to know that Christmas greeting
cards from a number of members of the current royal
family have been retained, despite the well-publicized
estrangement of the Duke and Duchess from the royal
family.
Our determination that these articles should be
classified as items of historical interest is arrived
at by the combination of all of the above factors. In
other cases, additional factors may be relevant in
determining classification under heading 9705. In
other words, the foregoing is not an exhaustive list.
This decision is based on the unique items that are the
subject of this ruling and thus must be considered to
be relevant only to the particular facts presented
herein. You have argued that this prospective
importation must be considered as an entirety for
classification purposes and that it should not be
broken up, allowing Chapter 97 treatment for some
articles, and "regular" classification for others. We
do not accept this proposed importation as an entirety
in the manner claimed. We have, instead, looked at the
item descriptions in sufficient detail to consider them
having been examined on an article by article basis.
As such, they are eligible for tariff treatment under
heading 9705.
HOLDING:
The household and other articles described in
Appendix A, not otherwise excepted here, which belonged
to the Duke and Duchess of Windsor are properly
classifiable under subheading 9705.00.0090, HTS, as
Collections and collectors' pieces of zoological,
botanical, mineralogical, anatomical, historical,
archeological, paleontological, ethnographic or
numismatic interest, other, and are entitled to
duty-free entry.
Sincerely,
John Durant,
Director, Tariff
Classification
Appeals Division