CLA-2-98:OT:RR:NC:N4:433
Lee Clark
Director
Restoration and Conservation
The Barber Vintage Motorsports Museum
6030 Barber Motorsports Parkway
Leeds, AL 35094
RE: The tariff classification of race cars, and one spare chassis and one original body, imported to a motorsports museum from the United Kingdom.
Dear Mr. Clark:
In your letter dated February 20, 2013, you requested a tariff classification ruling.
The merchandise concerned involves the prospective import of a 1957 Lotus Type 12, chassis number 359, plus one spare chassis and one original body; a 1962 Lotus Type 19, chassis number 962; and a 1963 Lotus Type 27 Formula Junior, chassis number 27/JM/13. The three racing vehicles are destined to The Barber Vintage Motorsports Museum for inventory. It is stated that the racing vehicles are for the local universities and schools to examine, as well as for the general public to study. The museum works with three engineering schools in Alabama, allowing students to dissect and examine the design and construction of these vehicles. Company provided information indicates that the museum does not typically sell collected motorsport vehicles, and that, they have no plans to drive them on public roads as they are typically racing vehicles not suited for public roads.
Background information indicates, that in 1994, the Barber collection became The Barber Vintage Motorsports Museum when it was granted 501(c) 3, not for profit status. The collection contains over 1300 motorcycles and over 80 vintage cars, of which all cars and two/thirds of the motorcycles are on permanent display. It is suggested by you that the merchandise concerned should be classified in the Special Classification Provisions of the Harmonized Tariff Schedule of the United States (HTSUS), Subchapter XII – Articles Admitted Free of Duty Under Bond for Permanent Exhibition.
Subheading 9812.00.2000, HTSUS, provides for the free entry under bond for “Articles imported for exhibition by any institution or society established for the encouragement of agriculture, arts, education or science, or for such exhibition by any State or for a municipal corporation.” The U.S. Notes applicable for this provision exclude articles imported for sale or for purposes other than exhibition, and it applies only to non-profit organizations and institutions. Articles admitted under subheading 9812.00.2000 may be transferred from an organization specified therein to another such organization, or temporarily to a commercial gallery or other person, for exhibition and not for sale. If the articles are sold or used contrary to the terms of the provision within 5 years after entry, lawful duties are due. For purposes of demonstrating compliance under the provisions of Subchapter XII see 19, Code of Federal Regulations: 19 CFR 10.49 – Articles for exhibition; requirements on entry.
The word “exhibition” is not defined in the text of the HTSUS, nor the Explanatory Notes to the HTSUS. When terms are not defined, they are construed in accordance with their common and commercial meaning – Nippon Kogasku (USA), Inc. v. United States, 69 CCPA 89, 673 F.2d 380 (1982). Common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities and other reliable sources – see C.J. Tower & Sons v. United States, 69 CCPA 128, 673 F.2d 1268 (1982).
Standard dictionaries define the word “exhibition” as a public display of art or items of interest, held in an art gallery or museum or at a trade fair. Consequently, it is our opinion that racing vehicles imported for purposes of dissection and examination by students attending university or vocational schools are beyond the scope of subheading 9812.00.2000. However, we are of the opinion, if the three Lotus race cars (including one spare chassis and one original body) are imported for purposes of museum showroom display and/or race track demonstrations and challenges, that the merchandise concerned is eligible to be classified in the duty-free under bond provision of subheading 9812.00.2000. See Headquarters Rulings: HQ 961279 dated November 5, 1998 and HQ 962234 dated July 17, 2000.
The applicable subheading for the three Lotus race cars, and one spare chassis and one original body, upon compliance with 19 CFR 10.49, will be 9812.00.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles imported for exhibition by any institution or society established for the encouragement of agriculture, arts, education or science, or for such exhibition by any State or for a municipal corporation .” The rate of duty will be free, under bond.
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,
Thomas J. Russo
Director
National Commodity Specialist Division