The tariff classification of model ships from Vietnam

NY G88006 March 28, 2001 CLA-2-95:RR:NC:SP:225 G88006 CATEGORY: Classification TARIFF NO.: 9503.90.0000 Mr. James F. Morgan PBB Global Logistics 883-D Airport Park Road Glen Burnie, MD 21061 RE: The tariff classification of model ships from Vietnam Dear Mr. Morgan: In your letter dated March 6, 2001, you requested a tariff classification ruling on behalf of your client Oceana Traders, Inc. Pictures were submitted of a variety of “Collector’s Models of Historical Ships.” The ships are made of wood and measure anywhere from 2 to 5 feet in length. They are detailed representations of actual ships, which include the Constitution, Titanic, HMS Bounty, etc. The classification of merchandise under the HTS is governed by the General Rules of Interpretation (GRI'S). GRI 1 of the HTS, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes...” In your letter you suggested Heading 9705 which provides for “Collections and collectors’ pieces of … historical, … interest”. The Explanatory Notes for Heading 9705 specifically state: “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….” The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN), although not legally binding are the official interpretation of the tariff at the international level. They state, in pertinent part for 95.03(B) that the heading covers “Reduced-size (“scale”) models and similar recreational models.” Included among the exemplars are “models of a kind mainly used for recreational purposes, for example, working or scale models of boats, aircraft, trains, vehicles, etc.” In your letter you contend that, because the historic ships are non-working, intended only for display, and expensive, they are demonstrational and are devoid of any recreational aspect. In HQ 957097, dated Jan. 12, 1995, Headquarters responded to that argument: “Model cars classifiable in heading 9503 may also be non-working, be intended only for display, and need not be designed to withstand manual play or other physical contact after construction has been completed. The term recreation does not necessarily connote roughhousing, and more accurately describes the relaxing and enjoyable pastime that many individuals find in collecting and/or simply viewing model cars such as these. On the other hand, we find the demonstrational properties of the model cars to be quite limited. They are not used to advertise, train, illustrate complex functions, or provide a glimpse of what hands-on experience with the actual article represented would be like.” It is apparent that the subject wooden ships, depicting actual historical vessels, would be classified as recreational models in Chapter 95. The applicable subheading for the “Collector’s Models of Historical Ships,” will be 9503.90.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for other toys: other: other toys and models. The rate of duty will be 70 percent ad valorem, in accordance with General Note 3(b), HTS, which provides that goods from Vietnam, whether imported directly or indirectly, are subject to duty rates listed in Column 2. 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 Alice J. Wong at 212-637-7028. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division