CLA-2-71:OT:RR:NC:N4:433
Shelley M. Hooker
International Logistics Specialist
American Precious Metals Exchange
226 Dean A. McGee Avenue
Oklahoma City, OK 73102
RE: The tariff classification of the 2011 Austrian Philharmonic Bullion Coin from Austria.
Dear Ms. Hooker:
In your letter dated September 2, 2011, you requested a tariff classification ruling. Photos were submitted of the 2011 Austrian Philharmonic Bullion Coin.
Descriptive literature describes the 2011 Austrian Philharmonic Bullion Coin as a one troy ounce silver bullion coin. The coin has a diameter of 37 mm. The coin is .999 (99.90%) silver and is uncirculated. The coin is minted at the Austrian Mint in Vienna. The obverse of the coin features the Great Organ, from Vienna’s Golden Hall and the phrase 1 UNZE FEINSILBER (1 once pure silver). The reverse of the coin features an array of musical instruments, including a violin, cello, string bass, bassoon, and Viennese horn. This coin is legal tender, has a denomination of 1.50 (€1.5) Euros, and is the currency used by several members of the European Union.
When interpreting and implementing the Harmonized Tariff Schedule of the United States (HTSUS), the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs for heading 7118, state in pertinent part: this heading applies to coins of any metal (including precious metals) of officially prescribed weight and design, issued under government control for use as legal tender. Consignments of individual coins or of sets of coins which are legal tender in the country of issue are classified in this heading even if they are put up for general sale in presentation cases. The heading includes coin which is no longer legal tender, but it excludes collectors’ pieces of heading 9705, HTSUS. As the 2011 Austrian Philharmonic Bullion Coin is legal tender, the coin is excluded from being classified in heading 9705 – see ENs to heading 9705.
Coins are provided for, eo nomine, in heading 7118, HTSUS. As described by the ENs to heading 7118, the scope of the heading includes coins issued by government control that are legal tender. As such, the subject merchandise’s classification also hinges on whether the coins meet the definition of “legal tender.” The phrase “legal tender” is not defined in either the tariff schedule or the ENs, and as such CBP is permitted to draw on dictionaries and other lexicographic materials. See, e.g., Lonza v. United States, 46 F.3d. 1098; 1995 U.S. App. LEXIS 1821; 16 Int’l Trade Rep (BNA) 2551.
The Oxford English Dictionary defines “legal tender” as “coin or other money, which a creditor is bound by law to accept, when tendered in payment of a debt.” According to Webster’s College Dictionary, “legal tender” is “money that may be legally offered in payment of an obligation and that a creditor must accept.” According to a numismatic dictionary, non-circulating legal tender is “a coin struck by the national issuing authority mainly to be sold to collectors. The coins also have a face value and can be spent in the country of issue.” See http://www.predecimal.com/dictionary. htm. In this case, the 2011 Austrian Philharmonic Bullion Coin is issued by the Austrian Mint, can be used in legal contracts with a 1.5 Euro face value, and can be used in settlement of debts and purchases. Consequently, the Austrian Philharmonic Bullion Coin is classifiable in heading 7118, HTSUS.
The applicable subheading for the 99.90% silver bullion coin, 2011 Austrian Philharmonic, will be 7118.90.0055, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Coin: Other: Other.” The rate of duty will be 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 World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division