HQ 961279

November 5, 1998

CLA-2 RR:CR:GC 961279K

CATEGORY: Classification

TARIFF NO.: 9705.00.00

Lindsay T. Thompson, Esq.

Joel R. Junker, Esq.

Attorneys at Law

520 Pike Street, Suite 1510

Seattle, Washington 98101

RE: Classic Automobiles; Collector's Articles; William T. Connor, II,
Living Trust

Dear Messrs. Thompson and Junker:

The following is in response to your request of December 23, 1997, and
subsequent submissions dated March 16 and April 8, 1998, and descriptive
literature, for a tariff classification ruling concerning two
automobiles.

**FACTS:**

The Connor Living Trust (Trust) holds a collection of approximately 40
rare and unusual automobiles, the majority of which were produced during
the late 1920\'s through the 1950\'s which may be shown at exhibitions
of rare automobiles or in museums. The Trust wants to import two
automobiles to add to the collection; a 1929 Bentley Supercharger
(Blower) 4 1/2 liter racing car and a 1936 Mercedes-Benz 500K "Special
Roadster".

Extensive descriptive literature was submitted concerning the collection
of rare automobiles as well as the catalogue, [Moving
Beauty]{.underline}, produced by The Montreal Museum of Fine Arts
(1995). The literature indicates that similar "collector" automobiles
may cost several million dollars. Some of the literature depicts the
automobiles subject to this request for a ruling with the original
registration plates.

The Bentley is registered in the Isle of Man and the Mercedes is also
registered in the United Kingdom, and will maintain these registered
numbers as unique identifiers which is a common practice with rare
automobiles. Such "collectible' automobiles are driven no more than a
few feet to comply with show requirements that entered vehicles be
started and driven a short distance to prove that they work (that is,
for exhibition purposes only and not for utilitarian purposes). Because
the automobiles will not be used for utilitarian purposes or for the
conveyance on public roads, there is no requirement for automobile
registration in local jurisdictions or the need for the typical
automobile insurance coverage such as liability or collision insurance.
Of course, they will be insured during shipping by ocean transport and
other insurance for the protection from losses.

Only 50 "Blower Bentley" cars were produced; the first five for racing
purposes and the rest for public use. The one registered as YU3250, and
subject to this request for a ruling, was the first of the five
supercharged Bentley Blowers built. It serves as the basis for models
made by Matchbox, Corgi, the Franklin Mint, and others.

The 1936 Mercedes Benz 500 K, "Special Roadster", United Kingdom
registration number CXT20, is stated to be one of the two cars delivered
to England from Germany which was found in a butcher's shed in England
in the mid 1980\'s. It is estimated that less than 15 of these
automobiles still exist.

A great deal of background information was submitted to show the
extensive use of these types of automobiles in racing contests, and the
excellence in design and engineering.

We are satisfied, from the information submitted, that the Trust (not a
trust for non-profit purposes), maintains a "collection" of automobiles
of a non-utilitarian nature, which may, on occasion, be exhibited at
museums and public exhibitions. You requested that we issue a ruling
that the two automobiles as described, are classified as collections and
collectors' pieces, under subheading 9705.00.00, Harmonized Tariff
Schedule of the United States (HTSUS), free of duty.

**ISSUE:**

Do the automobiles as described, to be added to a collection of
automobiles, qualify for free entry under heading 9705.00.00, HTSUS.

**LAW AND ANALYSIS:**

Heading 9705.00.00, HTSUS provides for the free entry of collections and
collectors\' pieces of zoological, botanical, mineralogical, anatomical,
historical, archeological, paleontological, ethnographic or numismatic
interest. Based on the information submitted, we are satisfied that the
Trust maintains a "collection" of automobiles. However, not all
"collections" qualify for classification in heading 9705.00.00, HTSUS.
You suggest the two automobiles that are to be added to the collection
are of historical interest and are classified in heading 9705.00.00,
HTSUS, and our discussion is limited to this area.

The Explanatory Notes (EN\'s) to the Harmonized Commodity Description
and Coding System, which represent the official interpretation of the
tariff at the international level, facilitate classification under the
HTSUS by offering guidance in understanding the scope of the headings
and General Rules of Interpretation of the HTSUS. The EN's for heading
9705, states that "these articles are very often of little intrinsic
value but derive their interest from their rarity, their grouping or
their presentation."

Rarity, grouping and presentation are guidelines. Value is not a
controlling guideline for rarity but it may be considered to show
rarity. The [Compact Edition of the Oxford English
Dictionary]{.underline} (1987) defines grouping as "the action of
placing in groups, a manner in which things are grouped", and defines
presentation as "a display, show, exhibition". [The Random House
Unabridged Dictionary]{.underline} (1993) also defines presentation as
"an exhibition or performance, as of a play or film". These guidelines
indicate that the articles must be rare, placed in groups indicating
more than one article, and consist of articles for exhibition and not
for utilitarian use. From the information submitted, it would appear
that the two automobiles meet these guidelines.

The EN's for heading 9705, further state, in part, that the heading
includes:

> \(B\) **Collections and collectors' pieces of historical,
> ethnographic, palaeontological 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.
>
> \(2\) Articles having a bearing on the study of the activities,
> manners, customs and characteristics of contemporary primitive
> peoples, for example, tools, weapons or objects of worship.
>
> \(3\) Geological specimens for the study of fossils (extinct organisms
> which have left their remains or imprints in geological strata),
> whether animal or vegetable.

The guidelines of the EN's indicate a narrow interpretation of coverage
under heading 9705. We are of the opinion that the automobiles do not
fall within the above samples. The background of these two automobiles
has been fully described. However, we do not agree that they are
historical articles that belonged to famous persons (or that they are
ethnographic articles.) There is no claim of a specific incident or
occurrence involving these automobiles in a significant historical event
and there is no specific claim that these automobiles "belonged to
famous (historical) persons". Accordingly, we conclude that the articles
are not classified in heading 9705.00.00, HTSUS. This is consistent with
the Customs position in New York Ruling Letter 815818, dated December 7,
1995.

You noted that collections of automobiles are exhibited by museums.
Subheading 9812.00.20, 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 excludes
articles imported for sale or for purposes other than exhibition and it
applies only to non-profit institutions. If the articles are sold or
used contrary to the terms of the provision within 5 years after entry,
lawful duties are due. Although the terms for free entry under
subheading 9812.00.20, HTSUS, are more restrictive than for articles
entered under heading 9705.00.00, HTSUS, there is a broad coverage of
articles under heading 9812.00.20, HTSUS, and the provision is not
subject to the narrow EN's guidelines for heading 9705.

**HOLDING:**

The classic automobiles intended to be added to a collection of
automobiles as described above, do not qualify for free entry under
heading 9705.00.00, HTSUS.

Sincerely,

John Durant, Director

Commercial Rulings Division