CLA-2-97:OT:RR:NC:N4:433
Jeanne Marie Van Ornum
CHB – Import
Western Overseas Corp.
319 N. Main Avenue, Suite 110
Springfield, MO 65806
RE: The tariff classification of a 1970 Ferrari 512 S, Chassis No. 1006 from the United Kingdom.
Dear Ms. Van Ornum:
In your letter dated March 30, 2017, on behalf of Gooding & Company, you requested a tariff classification ruling. You specifically, request that the 1970 Ferrari 512 S, Chassis No. 1006, be classified as a collectors’ piece of “historical significance” in heading 9705 of the Harmonized Tariff Schedule of the United States (HTSUS). Internet literature was provided from the website of “rmsothebys.com” and the website of “racingsportscars.com.” Additional information was provided from the website of “ultimatecarpage.com,” with further supplementing literature provided from the website of “rmsothebys.com.”
The merchandise concerned is the 1970 Ferrari 512 S, Chassis No. 1006. Chassis No. 1006 is of Italian design and construction, and is residing in the United Kingdom. Twenty-five, 512 chassis were built, of which 15 converted to “M” specifications. In an article from “rmsothebys.com,” Chassis No. 1006 sold at auction in May of 2007 for €2.640.000 (euros), approximately at that time in U.S. dollars for $3,590,400.00. Previously, in an article from “rmsothebys.com,” Chassis No. 1006 sold at auction in August of 2005 for $1,947,000.00.
Upon research for merchandise concerned, this office found a concise article authored by Wouter Melissen and posted on the website of “ultimatecarpage.com,” last updated October 28, 2013, summarizing the chronology of the 1970 Ferrari 512 S, Chassis No. 1006.
Author Wouter Melissen posted the following two paragraphs:
“Earmarked for the North American Racing Team (NART), chassis 1006 was delivered to team principal Luigi Chinetti in time for the 1970 Sebring 12 Hours. Sporting a Spyder roof, it was entered for Sam Posey and Ronny Bucknum. Sadly, the race ended for the NART Ferrari after just five hours when the gearbox failed. Later in the year, Pedro Rodriguez campaigned the car in two Can-Am rounds, finishing 11th and 7th. NART brought the car out again in 1971 when it was one of very few still wearing the original 512 S bodywork. Its best result came at the Daytona 24 Hours when Bucknum and Tony Adamowicz finished a close second to the victorious Porsche. Chassis 1006's final race was the 24 Hours of Le Mans where dirty fuel caused persistent fuel injection problems, eventually prompting the car's retirement.” “Following the chassis 1006's retirement from international racing, it was sold to Harley Cluxton, who campaigned the car in minor events. He sold the car on to Steve Earle; the founder of the Monterey Historic Races. Among the subsequent owners were noted collectors Chris Cord and Otis Chandler. During the early 1990s, it joined the impressive Rosso Bianco collection where it remained for around a decade. During the last couple of years, it crossed the RM Auctions block twice, most recently in 2007 when it changed hands for Euro 2.6 million at the auctioneer’s inaugural Leggenda e Passione sale in Maranello. The current owner is a British historic racer, who has brought the 512 S out for select events during the last couple of years.”
Classification under the Harmonized Tariff Schedule of the United States (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.
Items purporting to be classified in heading 9705 of the HTSUS (“Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest”) must be examined on a case-by-case basis, considering all relevant factors involved.
There is no dispute that the subject merchandise is a motor car. Therefore, the question before us is whether the subject car is also described as a collectors’ piece, in which case, pursuant to Note 4 (a) to Chapter 97, HTSUS, it must be classified there, and not in heading 8703, HTSUS.
When interpreting and implementing the 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).
In light of this, we turn to the ENs to inform and shape our understanding of the scope of the heading, but with the caveat that the ENs are used for guidance only in interpretation of the HTSUS. The ENs explain the scope of headings, often by means of exemplars, of which these examples are not necessarily all inclusive or all restrictive. The ENs should not restrict or expand the scope of headings, rather, they should describe and elaborate on the nature of goods falling within those headings, as well as the nature of goods falling outside of those headings.
The ENs to heading 9705, HTSUS, states, in pertinent part, the following:
These articles are very often of little intrinsic value but derive their interest from their rarity, their grouping or their presentation. The heading includes:
* * *
(B) Collections and collectors’ pieces of historical, ethnographic, paleontological or archaeological interest, for example:
(1) Articles being the material remains of human activity suitable for the study of the activities of earlier generations, such as: mummies, sarcophagi, weapons, objects of worship, articles of apparel, articles which have belonged to famous persons.
There exists no strict standard or enumerated criteria for articles classified in heading 9705, HTSUS. The word “historic” is not defined by the tariff, nor by the ENs, and the dictionary definition is quite broad. The Oxford English Dictionary states it is, “A historical work or subject; a history. Now rare”, and “relating to history; concerned with past events.” “historic, n. and adj.” OED Online. Oxford University Press, December 2014. Web. 23 February 2015.
Cars present an interesting conundrum in a heading 9705 analysis, as motor cars and racing cars (even luxury ones) are generally-speaking mass-produced for commercial consumption. Goods produced as a commercial undertaking to commemorate, celebrate, illustrate, or depict an event or any other matter, whether or not production is limited in quantity or circulation, do not fall in this heading as collections or collectors’ pieces of historical interest [unless the goods themselves] have subsequently attained that status by reason of their age or rarity. With regard to the aforementioned sentence, noting goods obtain the level of collectors’ pieces by reason of their age or rarity, we also note that goods obtain the level of collectors’ pieces by their (1) placement along the time spectrum as recorded in the annals of historical accountings, (2) recognized accomplishments as documented and recorded in the pages of historical facts, and (3) association to famous persons with or without a nexus to an historical time.
For purposes of entitlement of duty-free status under heading 9705, HTSUS, goods need only show they reach the level of collectors’ pieces as set by one of the three “parameters” as listed in the last paragraph, last sentence above. If goods qualify by their placement in time to be of historical interest, then there is no requirement that those same goods be deed-worthy or belong to famous persons. Nevertheless, we observe from the record as posted on “racingsportscars.com” that Chassis No. 1006 had raced on famous racing circuits, such as the 12 h Sebring, the Can-Am Mid-Ohio, Can-Am Road America, 1000 km Buenos Aires, 24 h Daytona and the 24 h Le Mans; had noteworthy finishes on some of those tracks including a 2nd place finish at 12 h Daytona, a 7th place finish at the Can-Am Road America, an 8th place finish at the 1000 km Buenos Aires and an 11th place finish at the Can-Am Mid-Ohio; and had been driven by well-known race car drivers, whether know in the United States or abroad, such as Sam Posey, Ronnie Bucknum, Bert Everett, Pedro Rodríguez, García-Veiga, Rubén Lois Di Palma, Tony Adamowicz and Masten Gregory.
With case in point, this office is satisfied that the 1970 Ferrari 512 S, Chassis No. 1006, has a placement in the annals of sportscar racing as logged by those racing circuit authorities, and kept in retained records by historians and enthusiasts, both of which track such racing events and their outcomes for purposes of historical remembrance. Those well-known race car drivers, even without determining whether they are famous or not, contributed to the success of the historical accounting of the 1970 Ferrari 512 S, Chassis No. 1006. Upon proper supporting documentation, authenticating Chassis No. 1006 to its original engine or reworked engine, as well as identifying the coachwork performed, the merchandise concerned is a collectors’ item of historical interest.
The applicable subheading for the 1970 Ferrari 512 S, Chassis No. 1006, will be 9705.00.0070, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest: Archaeological, historical, or ethnographic pieces.” 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 https://hts.usitc.gov/current.
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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division