HQ 083968: Fuel Line Repair Kit

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                         HQ 083968


                                         July 6, 1989


             CLA-2:CO:R:C:G   083968 JAS

             CATEGORY:   Classification

             TARIFF NO.: None

             Donald L. Rosati
             Volkswagen of America, Inc.
             P.O. Box 3951
             Troy, Michigan 48007-3951

             RE:  Fuel Line Repair Kit

             Dear Mr. Rosati:

                  In your letter of March 7, 1989, to the Area Director of
             Customs, New York Seaport, you inquire whether components
             packaged together for use in repairing defective automotive
             fuel lines constitutes items in a set put up for retail sale
             for tariff purposes.  Our ruling follows.

             FACTS:

                  At your request, we will only consider whether these kits
             constitute goods put up in sets for retail sale.  Neither the
             classification of individual components nor, to the extent
             relevant, identification of the component which gives each kit
             its essential character is in issue.

                  The merchandise in question is the Audi turbo engine kit.
             Each kit is individually packaged and contains a variety of
             retaining clips, hoses, clamps, brackets, connectors, and tee
             fittings, as well as fuel line covers and valve covers with
             their gaskets.  The kits will be distributed through
             Volkswagen of America, Inc. to Audi dealers for their use in
             connection with a fuel system modification recall campaign.
             You state that Volkswagen AG, West Germany, will invoice
             Volkswagen of America, Inc. directly on a per-kit basis.  The
             components of each kit (plus hood mat and fuel injector O-
             rings which are not parts of the kit) are installed in a
             recalled vehicle free of charge to the owner.  Unused kits are
             returned to Volkswagen of America.  Dealers are invoiced only
             for kits retained in inventory.













                                        - 2 -

                  You maintain that because each kit consists of at least
             two different articles classifiable in different headings,
             contains articles put up together to meet a particular need,
             and is in a manner suitable for retail sale, it constitutes
             goods put up in sets for retail sale.  Under General Rule of
             Interpretation (GRI) 3(b), Harmonized Tariff Schedule of the
             United States Annotated (HTSUSA), such goods are classifiable
             according to the component which gives them their essential
             character.

             ISSUE:

                  Are the kits at issue goods put up in sets for retail
             sale under the HTSUSA?

             LAW AND ANALYSIS:

                  GRI 3(a), HTSUSA, states in part that when two or more
             headings each refer to part only of the items in a set put up
             for retail sale, those headings are to be regarded as equally
             specific in relation to those goods.  GRI 3(b) states in part
             that 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 component which gives them their
             essential character.

                  Relevant Explanatory Notes, which provide guidance in the
             interpretation of the Harmonized Commodity Description and
             Coding System at the international level, indicate that the
             term "goods put up in sets for retail sale" means goods that
             (1) consist of at least two different articles which are,
             prima facie, classifiable in different headings, (2) consist
             of products or articles put up together to meet a particular
             need or carry out a specific activity, (3) and are put up in a
             manner suitable for sale directly to users without repacking.

                  There is no requirement that sets actually be sold at
             retail.  Fuel line modification kits delivered without
             repacking to Audi dealers who, as the ultimate consumers, will
             install the components on recalled cars without charge to the
             owners, are put up in a manner suitable for sale directly to
             users.




















                                     - 3 -

             HOLDING:

                  In the described circumstances, fuel line modification
             kits qualify as goods put up in sets for retail sale for
             purposes of GRI 3(b), HTSUSA.


                                        Sincerely,



                                        John Durant, Director
                                        Commercial Rulings Division