CLA-2 OT:RR:CTF:TCM H209955 TNA
Shay O’Reilly, Trade Compliance Manager
West Marine Products
500 Westridge Drive
Watsonville, CA 95076
Re: Tariff Classification of Jib Lead System Components
Dear Mr. O’Reilly:
This is in response to your request on behalf of West Marine Products (“West Marine”), submitted on January 20, 2012, to U.S. Customs and Border Protection (“CBP”), National Commodity Specialist Division, for a binding ruling on the tariff classification of three types of West Marine’s Jib Lead System under the Harmonized Tariff Schedule of the United States (HTSUS). Your ruling request was forwarded to this office for a response.
FACTS:
The subject merchandise consists of three types of jib lead cars. Jib lead cars are used in combination with an aluminum track to make up a sliding assembly. This sliding assembly is then used to trim a jib, which is the triangular sail set ahead of the mast of a sailing vessel. Trimming is the act of adjusting the sails, taking into account the direction of the wind and the course of the ship.
Jib cars are designed to slide along a track that is mounted to the deck of a boat. The track is fitted with end stops so that the car does not slide off the end of the track. A pulley block is mounted to the end of the jib car, which is fastened to the jib sail. The position of the jib car affects the performance of the sail, moving the boat faster or slower.
The subject jib cars are used with an anodized aluminum track to make up a sliding assembly used to trim the jib. Each item is made of high tech polymers and fiber equivalents. The fact that they are not made of metal reduces their weight and tendency to corrode. They are imported ready for retail sale.
The first type of jib lead car at issue is SKU 10947596 (Part Number RC 72504), a jib lead car with no block. This two-piece car body functions on an alloy track without the need for separate inserts. An integrated becket at the forward end of the car suits 2:1 sheet systems, and the removable threaded pin allows for easy fitting of alternate blocks and accessories. An ergonomic plunger stop toggle, combined with the car body’s low friction, allows for easier adjustment. The toggle is located at the rear of the car to allow for easy access from the cockpit on sport boats and small keel boats. An arrow is located on one side to indicate the position of the stop for repeatable settings. The following is a picture of Part Number RC 72504:
The second jib lead car at issue in this ruling request is SKU 10947612 (Part Number RC72537), a jib lead car with Series 55 Orbit Block. This lead car provides the articulated connection between block and car. As with SKU 10947596, an ergonomic plunger stop toggle, combined with the car body’s low friction, allows for easier adjustment. The toggle is located at the rear of the car, and an arrow is located on one side to indicate the position of the stop. The following is a picture of Part Number RC72537:
The third jib lead car at issue is SKU 10947604 (Part Number RC72536), a jib lead car with Series 40 Orbit Block. This car uses a Dyneema® Link to provide an articulated connection between block and car. The Dyneema® Link provides full articulation. The positioning of the attachment pin provides a low lead aft for the lead block. The plunger stop button has a flush finish and the contoured form of the car eliminates the chance of lines and sails becoming snagged. The following is a picture of Part Number RC72536:
ISSUE:
Whether plastic jib lead cars for boats are classified in heading 3926, HTSUS, as plastic parts of boats, or as other articles of plastic?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods 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 GRIs 2 through 6 may then be applied in order. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and mutatis mutandis, to the GRIs 1 through 5.
The HTSUS heading under consideration is the following:
3926 Other articles of plastics and articles of other materials of headings 3901 to 3914:
3926.90 Other:
3926.90.30 Parts for yachts or pleasure boats of heading 8903; parts of canoes, racing shells, pneumatic craft and pleasure boats which are not of a type designed to be principally used with motors or sails.
* * *
3926.90.99 Other
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the HTSUS at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The EN for heading 3926, HTSUS, states, in pertinent part, the following:
This heading covers articles, not elsewhere specified or included, of plastics (as defined in Note 1 to the Chapter) or of other materials of headings 39.01 to 39.14.
The General EN for Section XVII, HTSUS, of which heading 8903, HTSUS, is a part, provides, in pertinent part, the following:
(III) PARTS AND ACCESSORIES
It should be noted that Chapter 89 makes no provision for parts (other than hulls) or accessories of ships, boats or floating structures. Such parts and accessories, even if identifiable as being for ships, etc., are therefore classified in other Chapters in their respective headings. The other Chapters of this Section each provide for the classification of parts and accessories of the vehicles, aircraft or equipment concerned.
Chapter 89, HTSUS, does not provide for parts of ships, boats, or floating structures, except for hulls. See Chapter 89; General EN to Section XVII. As a result, prior CBP rulings classify parts of boats of Chapter 89, HTSUS, in various other headings as appropriate. In particular, we have classified plastic parts of boats in heading 3926, HTSUS. See, e.g., NY N135835, dated December 13, 2010; NY N031756, dated July 8, 2008; NY I86845, dated October 18, 2002; HQ 958727, dated March 21, 1996; HQ 950059, dated October 21, 1991.
In your ruling request, you argue for classification in subheading 3926.90.30, HTSUS, as plastic parts of yachts or pleasure boats of heading 8903, HTSUS. Citing the heading text and EN 39.26, you argue that the subject merchandise is described by the terms of this subheading.
We agree. The subject jib lead cars are used with sailing vessels of heading 8903, HTSUS. Yet, jib lead cars, as imported, are not boats themselves. Furthermore, heading 8903, HTSUS, does not provide for parts. To the contrary, it is heading 3926, HTSUS, that provides for parts of boats that are made of plastic. As a result, we examine whether the subject jib lead cars can be classified as parts of boats of heading 8903, HTSUS. The courts have considered the nature of “parts” under the HTSUS and two distinct though not inconsistent tests have resulted. See Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, (“Bauerhin”) 110 F.3d 774. The first, articulated in United States v. Willoughby Camera Stores, (“Willoughby Camera”) 21 C.C.P.A. 322 (1933), requires a determination of whether the imported item is “an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article.” Bauerhin, 110 F.3d at 778 (quoting Willoughby Camera, 21 C.C.P.A. 322 at 324). The second, set forth in United States v. Pompeo, (“Pompeo”) 43 C.C.P.A. 9 (1955), states that “an imported item dedicated solely for use with another article is a ‘part’ of that article within the meaning of the HTSUS.” Id. at 779 (citing Pompeo, 43 C.C.P.A. 9 at 13). Under either line of cases, an imported item is not a part if it is “a separate and distinct commercial entity.” Id.
In the present case, the subject jib lead cars are specifically designed to be mounted on the deck of the sailboats that West Marine sells. Furthermore, they are specifically designed to adjust the sails of these boats in such a way as to allow the boats to move faster or slower. Lead cars also allow sailors to change the sheeting angle of the sail so that it has a more efficient shape. In addition, if the jib sheet, which is the line that runs through the lead cars, is tightened too much, the sail will become too flat and lose lift. If the jib sheet is too loose, the jib sail will lose drive. As such, the subject jib lead cars play an integral part of a sailboat, which would not function as well without it. As a result, we find that the subject jib lead cars are parts of boats of heading 8903, HTSUS. It is not disputed that the subject jib lead cars are made of plastic within the meaning of Note 1 to Chapter 39, HTSUS. Prior CBP rulings have classified sailboats in heading 8903, HTSUS. See, e.g., NY K81549, dated December 16, 2003; NY N018152, dated October 26, 2007; NY I84344, dated August 2, 2002. As a result, we find that the subject merchandise meets the terms of subheading 3926.90.30, HTSUS, which provides for “Parts for yachts or pleasure boats of heading 8903.”
Because this is an issue of first impression, we note that the subject merchandise is described by the first clause of subheading 3926.90.30, HTSUS. The subheading’s phrase “Parts for yachts or pleasure boats of heading 8903” is separated from the rest of the subheading by a semicolon. The subheading’s second clause, “parts of canoes, racing shells, pneumatic craft and pleasure boats which are not of a type designed to be principally used with motors or sails,” does not describe the subject merchandise because the subject jib lead cars are used with sailboats. However, CBP has consistently held that it is a fundamental rule of tariff interpretation that provisions separated by a semicolon stand alone for the purposes of classification and must be examined separately. See, e.g., HQ 956924, dated August 24, 1994; HQ 966963, dated April 30, 2004; HQ H047559, dated March 13, 2010. As a result, we find that the subject merchandise can still be classified in subheading 3926.90.30, HTSUS, by virtue of the provision before the semicolon, even if it is not described by the terms of the provision that follows the semicolon.
HOLDING:
By operation of GRI 1, the subject jib lead cars are classified in heading 3926, HTSUS. By application of GRI 6, they are specifically provided for in subheading 3926.90.30, HTSUS, which provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Parts for yachts or pleasure boats of heading 8903.” The 2012 column one, general rate of duty is 4.2% ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Ieva O’Rourke, Chief
Tariff Classification and Marking Branch