CLA-2 CO:R:C:M 952461 DWS
Mr. Tony Collini
John S. Conner, Inc.
33 South Gay St.
P.O. Box 1717
Baltimore, MD 21203-1717
RE: Land Rover Defender 110; Sport Utility Vehicle; Heading 8703;
Heading 8704; HQ 083412; HQ 083589
Dear Mr. Collini:
This is in response to your letter of August 14, 1992, to
the District Director of Customs, Baltimore District, concerning
the classification of certain sport utility vehicles under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The vehicle in question is a Land Rover Defender 110. It is
a 110 inch wheel base, 9 passenger sport utility vehicle, and,
according to the importer, is designed primarily for the
transport of persons. The vehicle has 4 side doors, 2 permanent
rows of seats, a fifth door in the rear, and auxiliary seating
for 4 of the 9 passengers via foldable center facing seats
located in the rear area. The front row of seats consists of 2
separate armchair type seats which are divided by a center
console. The second row is a permanently installed bench type
seat. The seat is split 60/40, and the back can be folded down
on the seat bottom and then folded forward. The rear side doors
are hinged doors which swing open. The fifth door, located in
the rear, is also hinged on the side. It only opens 90 degrees
from its closed position, thus restricting access to the vehicle.
The rear area is fully carpeted and equipped with windows
which open, and rear speakers for the stereo equipment. While
the storage area in the rear is approximately 62 cubic feet, it
is restricted by the existence of two platforms upon which the
center facing rear seats are located. While the bottom cushions
of the center facing seats fold up, they do not stow out of the
way, so they restrict the storage of items in the rear area.
Also, the existence of the platforms reduces the floor space of
the vehicle to 11 square feet. The storage area is subject to an
increase to approximately 85 cubic feet when the rear bench seats
are folded forward, but the area remains encumbered by the rear
stereo speakers, the platform, seat belts, passenger grab
handles, and a side storage area.
The vehicle is 181.1 inches long, 70.5 inches wide, 90
inches in height, and has a gross vehicle weight (GVW) of 6504
pounds. It has a 3.9 liter, fuel injected, 8 cylinder V8 engine
with a four speed manual transmission. It is built on a frame
with a ground clearance of 8.5 inches. The vehicle has coil
springs on all 4 wheels, and disc brakes in the front and drum
brakes in the rear. It is suitable for use both on-road and off-
road.
ISSUE:
What is the classification of the subject sport utility
vehicle under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification is determined
according to the terms of the headings and any relative section
or chapter notes.
Concerning the subject vehicle, the two competing
classification provisions are headings 8703 and 8704, HTSUS.
Heading 8703, HTSUS, provides for: "[m]otor cars and other motor
vehicles principally designed for the transport of persons (other
than those of heading 8702), including station wagons and racing
cars." Heading 8704, HTSUS, provides for: "[m]otor vehicles for
the transport of goods."
We note that heading 8703, HTSUS, is very specific in
limiting its classification to the kinds of vehicles that are
"principally designed for the transport of persons".
A Range Rover vehicle similar to the subject vehicle was
ruled upon in HQ 083412, dated May 19, 1989. In that ruling it
was stated that:
[s]port utility vehicles typically are designed to perform
multiple functions. Although these vehicles may vary in
body style and utility, they have certain characteristics
which are unique to this type of vehicle. For example, they
are designed to carry passengers, as well as cargo, and are
usually constructed on a truck chassis. This gives them a
body design that is stronger than that of ordinary passenger
cars. They have a boxy body structure which allows for
considerable interior volume, and flat cargo floors, which
facilitate the loading and unloading cargo. Sport utility
vehicles also have a higher ground clearance, which allows
them to be used both on-road and off-road. . . .
Structural design features indicating that a sport utility
vehicle is designed for the transport of persons, include
the presence of hinged rear side doors and rear side
windows. The hinges prevent the doors from opening fully.
The presence of a rear side door allows persons to access
the rear of the vehicle and are evidence of its suitability
for primarily transporting persons. Auxiliary design
features suggesting that the vehicle was intended for
passenger use include folding and removable seating,
interior trim packages, and carpeting.
Based upon the above criteria, it is our position that the
subject vehicle is principally designed for the transport of
persons. It has hinged rear side doors, rear side windows,
foldable seating, and carpeting. The hinged doors are evidence
that the rear area was designed to allow passengers occupying the
rear seats easy entry and exit, and are impractical for loading
cargo.
Although no single factor determines whether a vehicle is
principally designed for the transport of persons, the Land
Rover's structural and auxiliary design features indicate that it
was designed with the intent to primarily transport persons, not
cargo. See also HQ 083589, dated May 4, 1989.
HOLDING:
The Land Rover Defender 110 is classifiable under subheading
8703.24.00, HTSUS, which provides for: "[m]otor cars and other
motor vehicles principally designed for the transport of persons
(other than those of heading 8702), including station wagons and
racing cars: [o]ther vehicles, with spark-ignition internal
combustion reciprocating piston engine: [o]f a cylinder capacity
exceeding 3,000 cc." The general, column one rate of duty is 2.5
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division