CLA-2-93:OT:RR:NC:2:235
Mr. Jeffrey K. Reh
Beretta USA Corp.
17601 Beretta Drive
Accokeek, MD 20607
RE: The tariff classification of Model ARX-160 Assault Rifle from Italy
Dear Mr. Reh:
In your letter dated November 08, 2012, you requested a tariff classification ruling on behalf of Beretta USA Corp.
The instant product is the ARX-160 Assault Rifle. You state that the Rifle will be imported for law enforcement purposes. You indicate that you believe there is an “ambiguity” present in the Harmonized Tariff Schedule (HTSUS) that needs to be resolved to properly classify the instant product.
The issue that you wish to have addressed involves the wording of Heading 9301.90.30 when compared to Sub-heading 9301.90.9030. In part, the issue according to your statement is that the product in question can be considered as both a rifle and a machine gun. You correctly state that there is no definition in the HTSUS for a machine gun. Although we agree with your premise that some rifles may be considered machine guns in common definition, we disagree with that interpretation for Tariff classification purposes.
Classification under the HTSUS is determined through a set of rules known as the General Rules of Interpretation (GRI’s). In essence, these rules constitute a flow chart which when taken in order provide a set of parameters via which classification is determined. A summary of these rules is as follows:
GENERAL RULES OF INTERPRETATION
Classification of goods in the tariff schedule shall be governed by the following principles:
1. The table of contents, alphabetical index, and titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions:
2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall
be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.
3. 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:
(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only 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 those goods, even if one of them gives a more complete or precise description of the goods.
(b) 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.
(c) 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.
4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin.
5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein:
(a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character;
(b) Subject to the provisions of rule 5(a) above, packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.
6. For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.
We note specifically the text above in Item 6 in that only subheadings at the same level are comparable. (emphasis added). Part of the ambiguity that you indicate is present is due to your comparison of an 8 digit subheading with a breakout at a different level. In following the above rules, once we determine that the product at hand is a “Rifle”, classifiable at the 8 digit level 9301.90.30, we do not proceed to perform a comparison at a different 8 digit subheading unless it is equally specific. In this case, we are comparing the specific term “Rifle” to the text of “Other” in the following 8 digit subheading. As the instant product is clearly a rifle, it cannot also be “Other” than a rifle. We cannot consider a classification at the 10 digit heading under a non-relevant subordinate subheading. If there was a breakout for machine guns at the 8 digit level, we would potentially need to consider that heading. This is not the case.
You indicate that the breakout for machine guns would be rendered meaningless if the instant product were to be classified as a rifle. However, there are clearly other weapons, such as a machine gun, which use for example belt ammunition and may be operated by more that one person which would be more appropriately classified as other than a rifle for Tariff purposes.
The applicable subheading for the ARX-160 Assault Rifle will be 9301.90.3020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Military weapons, other than revolvers, pistols and the arms of heading 9307: Other: Rifles. The rate of duty will be 4.7% ad valorem on the value of the rifle, plus 20% on the value of the telescopic sight, if any.
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 Paul Hodgkiss at (646) 733-3046.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division