#  HQ 962234

July 17, 2000

CLA-2 RR:CR:GC 962234K

CATEGORY: Classification

TARIFF NO.: 9705.00.00

Port Director

U.S. Customs Service

6 World Trade Center, Room 761

New York, NY 10048-0945

RE: Protest 1001-98-102162; 1936 Bugatti 57G Tank/Race Car.

Dear Port Director:

The following is our response to the referral by your office, dated
September 18, 1998, of the request for further review of the
above-referenced protest.

**FACTS**:

The consumption entry covering the imported merchandise was reported as
liquidated on April 3, 1998, under the provision for other used motor
cars and motor vehicles principally designed for the transport of
persons, including racing cars, in subheading 8703.23.0090, Harmonized
Tariff Schedule of the United States (HTSUS), with duty at the general
rate of 2.5% ad valorem. A timely protest under 19 U.S.C. 1514 was
received on June 30, 1998. The protestant requested reliquidation of the
entry under the provision for collections and collectors\' pieces of
zoological, botanical, mineralogical, anatomical, historical,
archeological, paleontological, ethnographic or numismatic interest in
subheading 9705.00.00, HTSUS, with a general free rate of duty. In a
supplemental submission dated April 15, 1999, the protestant also
believed that the vehicle qualifies for free entry under subheading
9812.00.20, HTSUS. In preparing this ruling, consideration was also
given to arguments presented by protestant's counsel at a meeting on May
25, 1999.

The 1936 Bugatti T57 tank/race car was designed by Ettoré Bugatti and is
one of three built by the Bugatti automobile factory, at Molsheim,
France, that is still in existence. A copy of the original title shows
that it was registered on June 3, 1939, in the name of Ettoré Bugatti
living in Alsace, France. The race car was the winner of the 24 hours of
Le Mans Race in 1937, the French Grand Prix at Montlhery in 1936, and
both the Marine Grand Prix and Comings Grand Prix. The race car has not
been registered for road use since winning the 1937 Le Mans Race and was
stored in a museum after its victories in the world famous car races.
During the German occupation of France, the car was ordered by the
French Ministry of Air Defense to be moved to Bordeaux. A certificate of
appraisal dated December 8, 1997, describes the car as containing the
original body, interior, dashboard and instruments, wheels, and paint as
applied by the Bugatti factory, and that the engine is in "fine running
order". The appraiser also indicated that it is the "only true sports
racing car in the Bugatti model production".

It is stated that the back cover description of the book [The Amazing
Bugatti's]{.underline}, published in 1979, reads as follows:

The work of the Bugatti family\--three generations of craftsman, artists
and designers---is as diverse as it is original. But the furniture,
silver, paintings, sculpture, and thoroughbred cars and coachwork
produced by these remarkable individuals all embody the common themes of
love of natural form, high principles, truth to materials and
originality of thought. This book, published to coincide with the first
full-scale exhibition devoted to the Bugattis in Great Britain, not only
illustrates and describes their lives and work, but also provides a
fascinating insight into the changing relationship between art and
everyday objects.

It is stated that over 200 books have been written about the fame of the
Bugatti family. Documentation has been submitted to show the
establishment of worldwide clubs formed in the Bugatti family name
concerning an interest in automobiles.

It is also stated that the "fame of the Bugattis as historical figures
has been extended to philately. For example, Monaco issued a stamp
bearing the likeness of Ettore Bugatti, in or about 1912, in 1981.
Another stamp featuring the likeness of Ettore Bugatti and a T37 Bugatti
automobile was issued by the Central African Republic. Numerous other
stamps featuring a vast array of Bugatti automobiles have been issued by
France, Laos, S. Tome Principle, Burkino Fasso, Republic of Liberia,
Grenada, Nicaragua, St. Lucia and Grenadines of St. Vincent."

The protestant is a non-profit foundation and the race car is used in
public exhibitions.

**ISSUE**:

Whether the Bugatti 57G Tank/Race Car described above is classifiable as
a collectors' piece of historical interest, in 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.

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.

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.** (Emphasis added.)
>
> \(2\) 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.

Thus, heading 9705.00.00, HTSUS, provides for collectors' pieces of
historical interest and the guidelines of the EN's indicated that
articles which have belonged to famous persons is an element in
considering whether the collectors' piece is of historical interest. In
Headquarters Ruling Letter HRL 961279, dated November 5, 1998, we noted
that the guidelines of the EN's indicate a narrow interpretation of
coverage under heading 9705.00.00 and that not all collectors' pieces
are covered by heading 9705.00.00. HRL 961279 concerned a rare 1929
Bentley and a rare 1936 Mercedes-Benz no longer used to convey
passengers and intended to be added to a collection (of a Trust for
profit), and for exhibition. However, although they could be considered
as "collectors' pieces", there was no claim of a specific incident or
occurrence involving these automobiles in a significant historical event
and there was no specific claim that these automobiles belonged to
famous (historical) persons. HRL 961279 was consistent with the Customs
position in New York Ruling Letter 815818, dated December 7, 1995.

We are satisfied that the 1936 Bugatti 57G Tank/Race Car subject to this
protest, was owned by a famous person involved in significant historical
incidents and qualifies for classification in heading 9705.00.00, HTSUS.
Classification under heading 9705.00.00, HTSUS, should be decided on a
case by case basis.

You noted that the 1936 Bugatti 57G Tank/Race Car was imported by a
non-profit foundation for public exhibition. 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 subheading
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 9705.00.00, HTSUS.

We suggest, since all of the automobiles or racing cars designed and
built by the Bugatti family may not qualify under heading 9705.00.00,
HTSUS, that the importer should consider future importations under the
applicability of subheading 9812.00.20, HTSUS.

**HOLDING**:

The 1936 Bugatti 57G Tank/Race Car described above, owned by a famous
person and involved in historical incidents, is classified in heading
9705.00.00, HTSIS.

You are directed to allow the protest in full.

In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065,
Revised Protest Directive, dated August 4, 1993, a copy of this decision
attached to Customs Form 19, Notice of Action, should be provided by
your office to the protestant no later than 60 days from the date of
this decision and any reliquidations of entries in accordance with this
decision must be accomplished prior thereto.

Sixty days from the date of this decision the Office of Regulations and
Rulings will take steps to make this decision available to Customs
personnel, and to the general public on the Customs Home Page on the
World Wide Web at www.customs.gov, by means of the Freedom of
Information Act and other public access channels.

.

Sincerely,

John Durant, Director

Commercial Rulings Division