CLA-2-87:OT:RR:NC:N2:201
Jeffrey Goldstein
Griffy, LLC.
5878 Garden Oak Cove
Memphis, Tennessee 38120
RE: The tariff classification of an LED equipped bicycle wheel from Taiwan
Dear Mr. Goldstein:
In your letter dated April 8, 2021, you requested a tariff classification ruling.
The item under consideration has been identified as the “Starfish”. The Starfish is an LED equipped bicycle wheel designed to be mounted to the front fork of a bicycle. According to your email of April 14th to this office, the Starfish is designed as a replacement for the front wheel to allow the bicycle to be used as a “rolling billboard” for advertising businesses and Public Service Announcements (PSAs). You state that the Starfish will not be available for sale, nor will it be user programmable. Your company will be in control of what the Starfish displays. The user, bicycle couriers and delivery people will be able to turn the Starfish on and off. This allows for tracking speed, location, and duration of use for compensational purposes.
You state that the bicycle wheel has an aluminum rim with a 55.9cm diameter (22”).
In your request you suggest classification of the Starfish in 8512.10.2000, which provides for “Electrical lighting or signaling equipment…of a kind used for cycles or motor vehicles; parts thereof: Lighting or visual signaling equipment of a kind used on bicycles: Lighting equipment”. We disagree.
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1. states “... classification shall be determined according to the terms of the headings ....” Heading 8714 provides for, “Parts and accessories of vehicles of headings 8711 to 8713”.
General Rule of Interpretation 3(b) states, “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.”
This article is made up of two distinct parts, a bicycle wheel, and an LED system that allows the front wheel to be used for advertising as a rolling billboard. Since the LED system will only be used while the rider is engaged in activities conducive with work and earning a salary, it will only be used occasionally, the wheel on the other hand, will be used continuously whether the rider is engaged on a pleasure ride or a business one. Therefore, the essential character will be imparted by the bicycle wheel.
The applicable subheading for the Starfish will be 8714.92.1000, HTSUS, which provides for “Parts and accessories of vehicles of headings 8711 to 8713: Other: Wheel rims and spokes: Wheel rims”. The rate of duty will be 5% ad valorem.
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 the 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 Matthew Sullivan at matthew.sullivan.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division