CLA-2: OT:RR:CTF:TCM H009850 KSH
Donald Harrison Esq.
Gibson, Dunn & Crutcher LLP
1050 Connecticut Avenue N.W.
Washington, DC 20036
RE: Revocation of NY N007611, dated March 7, 2007; tariff classification of a
motorcycle Lock Set
Dear Mr. Harrison:
This is in reply to your letter dated April 13, 2007, in which you have requested reconsideration of New York Ruling Letter (NY) N007611, dated March 7, 2007, as it pertains to the classification of a Lock Set for the Honda CBR 600F motorcycle.
In accordance with your request for reconsideration of NY N007611, CBP
has reviewed the classification of this item and has determined that the cited ruling is in error.
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, notice of the proposed action was published on October 23, 2008, in Volume 42, Number 44, of the Customs Bulletin. CBP received one comment in support of the proposed notice.
FACTS: The merchandise at issue is a Lock Set, identified as part number 35010-MBW-A10, for use with the Honda CBR 600F motorcycle. It consists of a switch assembly, an alloy steel fuel filler cap with integrated lock and a motorcycle seat lock. A pair of matched keys to operate the three parts is included in the Lock Set. The Lock Set is packaged together in a box inside an unsealed clear plastic bag.
The switch assembly (an ignition cylinder attached to an ignition switch and contact base with wire harness) measures approximately 4 inches long and 2 ¾ inches at its widest. It has approximately 16 inches of harnessing attached.
The switch assembly controls the flow of electrical current from the battery to the starter and is operated by use of a key. The alloy steel fuel filler cap with integrated lock measures approximately 4 ½ inches in diameter and 1 ½ inches in height. It maintains a liquid-tight seal on the fuel tank and has an integrated locking mechanism that needs to be released in order to access the fuel tank. The motorcycle seat lock measures approximately 1 inch in diameter and 2 inches high. It secures the storage compartment that of the motorcycle. The lock is operated by the inserting of a key.
In NY N007611, we determined that the Lock Set was not classifiable as a set in accordance with General Rule of Interpretation (GRI) 3(b). Specifically we stated that the switch assembly was classified in heading 8536, Harmonized Tariff Schedule of the United States (HTSUS), as “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders, junction boxes), for a voltage not exceeding 1,000 V.” The fuel filler cap was classified in heading 8714, HTSUS, as “Parts and accessories of vehicles of headings 8711 to 8713” and the motorcycle seat lock was classified in heading 8301, which provides for “Padlocks and locks (key, combination or electrically operated), of base metal; clasps and frames with clasps, incorporating locks, of base metal; keys and parts of any of the foregoing articles, of base metal.”
ISSUE: Whether the Lock Set is classifiable as a set.
LAW AND ANALYSIS: Classification of goods under the HTSUS is governed by the GRI. GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied.
The HTSUS provisions under consideration are as follows:
8301
Padlocks and locks (key, combination or electrically operated), of base metal; clasps and frames with clasps, incorporating locks, of base metal; keys and parts of any of the foregoing articles, of base metal:
8301.20.00
Locks of a kind used on motor vehicles….
*
*
*
*
8536
Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders, junction boxes), for a voltage not exceeding 1,000 V:
8536.50
Other switches:
8536.50.90
Other….
*
*
*
*
8714
Parts and accessories of vehicles of headings 8711 to 8713:
Of motorcycles (including mopeds):
8714.19.00
Other….
Inasmuch as the Lock Set is composed of goods that are prima facie classifiable in more than one heading, classification cannot be resolved under GRI 1. GRI 2(b) directs that the "classification of goods consisting of more than one material or substance shall be according to the principles of rule 3."
GRI 3 provides that:
When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the materials or substances contained in mixed or composite goods or 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 the goods, even if one of them gives a more complete or precise description of the good.
Mixtures, composite goods consisting of different materials or made up of different components, and 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 material or component which gives them their essential character, insofar as this criterion is applicable.
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
The headings at issue only refer to part of the items in the set put up for retail sale. As such, they are regarded as equally specific and resort must be made to GRI 3(b).
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is Customs and Border Protection (CBP) practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See, T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
EN X to GRI 3(b) provides guidance as to whether the Lock Set constitutes “goods put up in sets for retail sale”:
For the purposes of this Rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which:
(a) consist of at least two different articles which are, prima facie, classifiable in different headings . . .;
(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and
(c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).
As previously explained, the items comprising the Lock Set are prima facie classifiable under different headings of the HTSUS.
The Lock Set is intended for installation on a single motorcycle to meet the need of an owner to carry a single key that will operate multiple functions of the motorcycle, all of which require the use of a key. The switch assembly requires a key for the owner to activate the ignition. The filler cap requires a key in order for the owner to fill the motorcycle with gas. The seat lock requires a key in order for the owner to access a storage compartment underneath the seat. Requiring the use of a key to access the ignition, gas tank, and storage compartment provides the owner with security for the motorcycle. The use of one key for accessing all three of these functions also fulfills the owner’s need for convenience, so that the owner is not obligated to carry multiple keys for each function. Accordingly, the Lock Set is put up together to meet an owner’s needs for convenience and security, through the use of a single key.
The goods are imported in a manner suitable for sale to users without repacking. At importation, the Lock Set is packaged in a box labeled with a singular part number. American Honda Motor Co. sells these units to Honda motorcycle dealers in the same packaging. (See HQ 962339 dated June 29, 1999, noting that CBP has previously held that merchandise that is not sold directly to consumers can be "goods put up in sets for retail sales," where some other party acts as the ultimate purchaser.)
Because the three criteria under EN X to GRI 3(b) are satisfied, the three items are considered '’goods put up in sets for retail sale” and will be “classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.”
Explanatory Note VIII to GRI 3(b) explains, "[t]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods." In this case, the principal reason for purchasing the Lock Set is to obtain three items that utilize the same key. The common feature in all three distinct articles is the locking mechanism. However, we must classify the three articles incorporating the lock mechanism, rather than classifying divergent articles as locks. The articles provide different purposes, none of which is more important than the others. Therefore, the set is not classifiable on the basis of its essential character by reference to GRI 3(b).
Thus classification must be determined in accordance with GRI 3(c). Heading 8714, HTSUS, is last in numerical order. Thus the Lock Set is classified in heading, 8714, HTSUS.
HOLDING:
By application of GRI 3(c), the Lock Set for the Honda CBR 600F motorcycle is classified in heading 8714, HTSUS. It is specifically provided for in subheading 8714.19.0060, HTSUS, which provides for: “Parts and accessories of vehicles of headings 8711 to 8713: Of motorcycles (including mopeds): Other: Other”. The general, column one rate of duty is “Free.”
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web, at http://www.usitc.gov.tata/hts/.
EFFECT ON OTHER RULINGS:
NY N007611, dated March 7, 2007, is hereby revoked.
In accordance with 19 U.S.C. 1625 (c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division