CLA–2 OT:RR:CTF:TCM H218536 CKG
RE: Internal Advice; Classification of tires from China
Port Director
U.S. Customs and Border Protection
Port of Norfolk
101 E. Main Street Norfolk, VA 23510
ATTN: Aldie Mayoralgo, Import Specialist
Dear Port Director,
This is in regard to a request for Internal Advice, forwarded to this office on May 21, 2012, by the Port of Norfolk, regarding the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of tires from China.
FACTS:
The tires at issue are identified as the “Gremax TredTech Touring Supreme WW” and the “BCT USA TredTech JB42”. The “Gremax TredTech” is imported in the following configurations:
205/70R15 (96S)
215/70R15 (98S)
195/75R14 (95S)
205/75R14 (95S)
205/75R15 (97S)
215/75R15 (100S)
225/75R15 (102S)
235/75R15 (105S).
The “BCT USA TredTech JB42” tires at issue are as follows:
235/75R15
225/75R16
245/75R16
265/75R16
215/85R16
235/85R16
31X10.5R15.
ISSUE:
Whether the instant tires are classified in subheading 4011.99, HTSUS, as “other” tires, or in subheadings 4011.10 and 4011.20, as tires of a kind used on motor cars and tires of a kind used on trucks, respectively.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs, 2 through 6, may then be applied in order. GRI 6, HTSUS, requires that the GRI's be applied at the subheading level on the understanding that only subheadings at the same level are comparable. The GRI's apply in the same manner when comparing subheadings within a heading.
The HTSUS provisions at issue are as follows:
4011: New pneumatic tires, of rubber
4011.10: Of a kind used on motor cars (including station wagons and racing
cars)
4011.10.10: Radial…
4011.20: Of a kind used on buses or trucks
4011.20.10: Radial…
Other:
4011.99: Other…
* * * *
The importer contends that the Gremax and BCT TredTech tires at issue are tires for trailer use, classified as “other” tires in subheading 4011.99, HTSUS. The Port contends that the Gremax TredTech tires are of a kind used on passenger vehicles, classified in subheading 4011.10, HTSUS, and that the BCT TredTech tires are of a kind used on light trucks, classified in subheading 4011.20, HTSUS. New, pneumatic tires from China, of a kind used on passenger vehicles and light trucks, entered between September 26, 2009 and September 25, 2012 are subject to an additional duty imposed by Presidential Proclamation number 8414. See 74 FR 47861, published September 17, 2009.
Counsel argues that the tires under consideration are tires for use on trailers only, are not used or suitable for use on light trucks or passenger tires, and thus are not subject to the safeguard duty rate. Counsel does acknowledge, however, that tires with an LT or P designation on the sidewall fall within the safeguard duty. We agree that an LT or P sidewall marking, while not required for passenger or light truck tires, is a strong indicator of intended use, and should be considered along with other physical design criteria such as the tread pattern, tire size, load range and speed rating of a particular tire, as well as the remaining Carborundum factors such as the marketing, environment of sale, channels of trade, and expectation of the ultimate purchaser.
TredTech Touring Supreme
The Gremax Tred Tech Touring Supreme tires at issue range in width from 215 to 235 millimeters, an aspect ratio of 70 or 75, a load index ranging from 95 to 105 (i.e., each tire is rated to carry a maximum load of 1521 to 2309 lbs.) and a speed rating of S (up to 112 mph, typical of passenger cars and vans). All of these physical criteria are typical of tires for use on passenger cars. We further note that while the Tire and Rim Association (TRA) Yearbook includes all of the of the Gremax TredTech Touring Supreme models at issue in the section for Passenger tires, three models—the 205/70R15, 215/70R15, and the 215/75R15—are not listed anywhere in the section of the Yearbook for trailer tires (titled “Tires for Trailers in Highway Service”).
Furthermore, in communications with CBP, a representative from the importer noted that the Tred Tech Touring Supreme tires all have a load range of “SL”, or “Standard Load”, which is the load designation for passenger tires. Trailer tires and Light Truck tires have a load range designated by a letter such as “D”, “E”, etc.
The tread pattern of the Gremax TredTech tires is also more consistent with use on passenger cars than on trailers; the tread pattern is designed for traction and control, whereas trailer tires are typically smooth, relying on the tractor tires to provide stability and traction.
Finally, these tires are marketed and sold as passenger tires by various exporters and tire distributors. See, e.g., http://boegroup.en.alibaba.com/product/ 442203456-212017990/Car_Tire_P215_75R15.html. See also, http://www.bestallseasontiresforsnow.com/20575r14-tredtech-touring-supreme-ww-95s.html (“designed for the latest generation of cars where comfort, high-speed stability and safety are the essential requirements... secure on wet surfaces, assured when braking, quiet on the road.”; http://www.rollingtire.com/discount-tires/new-tires/15-inch-new-tires/225-75-15/225-75r15-tredtech-touring-supreme-ww.
The environment of sale and channels of trade of the instant tires thus support their classification as passenger tires of subheading 4011.10. These factors will also affect the expectation of the ultimate purchaser, as the purchaser will expect from the physical characteristics, marketing and channels of trade of the Gremax tires that he is purchasing tires for use principally with passenger cars.
We find that the Carborundum factors thus support the classification of the instant tires as tires of a kind used on passenger cars.
BCT USA TredTech JB42:
The physical criteria (the sidewall marking, tread pattern, tire size, load range and speed symbol), in addition to the marketing, channels of trade, and the expectation of the ultimate purchaser of the BCT TreadTech JB42 tires at issue, support classification of these tires in subheading 4011.20, as tires for use with light trucks.
Counsel claims that these tires bear no “use” designation (i.e, a “P”, “LT” or “ST” marking) on the tire itself, but that their physical characteristics indicate their use on trailers. Contrary to Counsel’s assertions, however, the import specialist who physically examined these tires during the Focused Assessment/Audit noted and photographed the LT designation on the sidewall of the tires and on the company’s brochure. As noted earlier, such “use” markings are not required for passenger or light truck tires, but when present, they are suggestive, if not determinative, of intended use.
Furthermore, we note that the tread pattern of the BCT TredTech tires is also more consistent with use on passenger cars than on trailers; the tread pattern is designed for traction and control, whereas trailer tires are typically smooth, relying on the tractor tires to provide stability and traction.
The tire sizes specified also support the classification of the BCT tires in subheading 4011.20. We note that while the TRA Yearbook includes all of the BCT JB42 models at issue in the section for Light Truck tires, four models of the instant BCT JB42 tires—the 225/75R16, 265/75R16, 215/85R16 and 31X10.5R15—are not listed anywhere in the section of the Yearbook for trailer tires (titled “Tires for Trailers in Highway Service”). This indicates that the instant tires are designed for use on light trucks and not trailers.
Finally, these tires are clearly characterized and sold as “light truck” or “LT” tires by various exporters and tire distributors, which group the JB42 tires in the “LTR and SUV” category. See, e.g., http://www.boegroup.net/html/LT_1180_210.html. BOE further describes the JB42 tires as offering “better traction and ride comfort”—irrelevant criteria for a trailer tire, which is not designed to carry passengers, but important for an automobile or light truck tire. Similarly, NorthEast Tire, Inc., describes the JB42 tires as providing “a versatile blend of ride quality, noise comfort, treadwear and handling. Good traction and skid prevention on wet roads. An economical tire that provides a smooth ride and long mileage. Our Number One Seller for small fleet applications.” “Small fleet applications,” together with good traction control and a “smooth ride”, clearly indicate use of the instant tires with light trucks rather than trailers. See http://northeasttireinc.com/tires. See also, http://capitaltyre.en.made-in-china.com/product/dqnJKXPorSYv/China-Light-Truck-Tire-LT-235-75R15-JB42-.html; https://www.tiresavings.com/tireShop.php?action=findMan2&manufacturer=Federal&tirename=BCT+JB42&season=Regular. http://www.b2bweb.co/products_1672849.html; http://www.weiku.com/products/15286929/Light_Truck_Radial_Tire_JB42.html.
The environment of sale and channels of trade of the instant tires thus support their classification as passenger tires of subheading 4011.20. These factors will also affect the expectation of the ultimate purchaser, as the purchaser will expect from the physical characteristics, marketing and channels of trade of the BCT tires that he is purchasing tires for use principally with light trucks.
In summary, we find that the Gremax TredTech Touring Supreme tires are classified in subheading 4011.10, as tires of a kind used on motor cars, and the BCT USA JB42 tires are classified in subheading 4011.20, HTSUS, as tires of a kind used on buses or trucks.
Counsel refers repeatedly in their submission to DOT standards for tire inflation; however, we do not believe that this criterion is particularly helpful in distinguishing between passenger/light truck and trailer tires. Rather, common indicators of design and use of a particular tire, such as the tire size, load range, speed index, marketing, channels of trade, and the expectation of the ultimate purchaser provide a better indication of whether a tire is of a kind used on motor cars, buses, trucks or trailers. These factors strongly support the classification of the Gremax TredTech Touring Supreme and the BCT USA TredTech JB42 tires as tires of a kind used on passenger cars or light trucks.
Furthermore, we note that while counsel argues that the inflation pressure of the tires at issue does not correspond to those of light truck or passenger tires, and thus the tires would not be permitted to bear the marking “LT” or “P”, the import specialist who physically examined the BCT USA JB42 tires noted the marking of “LT” on the sidewall of the BCT tires.
HOLDING:
By application of GRIs 1 and 6, the Gremax TredTech Touring Supreme WW tires are classified in heading 4011, HTSUS, specifically subheading 4011.10.10, HTSUS, which provides for “New pneumatic tires, of rubber: Of a kind used on motor cars (including station wagons and racing cars): Radial.” The 2013 general, column one rate of duty is 4% ad valorem.
The BCT USA TredTech JB42 tires are classified in subheading 4011.20.10, HTSUS, which provides for “New pneumatic tires, of rubber: Of a kind used on buses or trucks: Radial.” The 2013 general, column one rate of duty is 4% ad valorem.
Duty rates are provided for the internal advice applicant’s convenience and are
subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided online at www.usitc.gov.
You are directed to mail this decision to the internal advice applicant, no later than 60 days from the date of this letter. On that date the Office of Regulations and Rulings will make the public version of the decision available to CBP personnel, and to the public on the CBP Home Page online at www.CBP.gov, by means of the Freedom of Information Act, and other public methods of distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division