OT:RR:NC:N4:462
Robert Calandra
Attorney at Law
4 Henning Drive Fairfield, NJ 07004
RE: The classification and country of origin of “Completely Knocked Down (CKD)” bicycles from Malaysia
Dear Mr. Calandra:
In your letter dated December 4, 2024, you requested a country of origin and classifcation ruling on “Completely Knocked Down” (CKD) bicycles on behalf of your client, Kent International Inc.
You outline a scenario where “Completely Knocked Down” bicycles (which comprise of unassembled bicycle components) are shipped from Malaysia and assembled in the United States. You state that the bicycle frames will be made in Malaysia and many of the other bicycle components, such as suspension forks, drive train parts, cranks, seats, and wheels, will be from other countries, including China.
Classification of goods under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order. We note that the bicycles are imported unassembled in the same shipment. General Rule of Interpretation (GRI) 2(a) states as follows:
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 failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
Furthermore, the Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) represent the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN for GRI 2(a) states in “Rule 2(a) (Articles presented unassembled or disassembled) (V)”:
The second part of Rule 2 (a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.
You suggest that, pursuant to GRI 2(a), the CKD bicycles would be classified as if they were fully assembled bicycles in subheading 8712.00.15 or 8712.00.35, HTSUS, which provides for “Bicycles and other cycles (including delivery tricycles), not motorized” depending on the diameter of the wheel, and dutiable at 11 percent. We agree.
Moreover, you also suggest that the bicycle frame, made in Malaysia, determines the country of origin of the CKD bicycle, even though many of the other components are of Chinese origin. Since one of the bicycle’s most significant components, the frame, is made in Malaysia, we agree that the country of origin of the CKD bicycle is Malaysia.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Sandra Sary at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division