CLA-2 OT:RR:CTF:TCM H105331 CkG
TARIFF NO: 8703.90.00
Margaret Sundberg
2100 Highway 55
Medina, Minnesota 55340
Re: Request for Binding Ruling for Breeze LS low speed vehicle
Dear Ms. Sundberg:
This is in response to your request of April 27, 2010, on behalf of Polaris Industries, Inc., concerning the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of the Breeze LS low speed vehicle.
FACTS:
The Breeze LS is a low speed vehicle physically resembling a golf cart.
The vehicle is battery-powered, with a top speed of 23 miles per hour, and a maximum range of 50 miles. The vehicle has front strut-type independent suspension and semi-independent rear suspension. The dimensions are as follows: length 102" (8.5 ft) x width 46.5" (3.875 ft) x height 76” (6.3 ft). The total vehicle dry weight is 1,130 lbs, with a payload capacity of 500 lbs. It does not have a closed driving cab, but it is equipped with a protective frame, roof, and windshield. It also includes other standard features such as bench seating accommodating two passengers, an adjustable driver’s side backrest, hi/lo beam headlights, turn signals, side mirrors, front impact bumpers, glove box, cup holders, and seat belts.
You state that the vehicle is categorized as a “Low Speed Vehicle” under the Federal Motor Vehicle Safety Standards, promulgated by the National Highway Traffic Safety Administration (NHTSA), 63 Fed. Reg. 33194 (June 17, 1998). See also 49 C.F.R. §571. This federal standard requires that small passenger vehicles with a top speed of 20-25 miles per hour must be equipped with the following features to ensure the safety of passengers when traveling on low-speed roads: headlamps, stop lamps, turn signal lamps, tail lamps, reflex reflectors, parking brakes, rearview mirrors, windshields, and seat belts.
ISSUE:
Whether the Breeze LS is classified in subheading 8703.10.50, as a golf cart or similar vehicle principally designed for the transport of persons, or in subheading 8703.90.00, HTSUS, as an other vehicle principally designed for the transport of persons.
LAW AND ANALYSIS:
Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's, applied in sequential order.
The HTSUS provisions under consideration are as follows:
8703: Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars:
8703.10: Vehicles specially designed for traveling on snow; golf carts and similar
vehicles:
8703.10.50: Other . . .
8703.90.00: Other . . .
* * * * * *
The Harmonized Commodity Description and Coding System Explanatory Notes
(“ENs”) constitute the official interpretation of the HTSUS. While not legally binding or
dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS
and are generally indicative of the proper interpretation of these headings at the
international level. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
EN 87.03 provides as follows:
This heading covers motor vehicles of various types (including amphibious motor vehicles) designed for the transport of persons; it does not, however, cover the motor vehicles of heading 87.02. The vehicles of this heading may have any type of motor (internal combustion piston engine, electric motor, gas turbine, etc.).
…
The vehicles of this heading may be of the wheeled or track laying type.
The heading also includes:
…
Golf cars and similar vehicles.
...
The classification of certain motor vehicles in this heading is determined by certain features which indicate that the vehicles are principally designed for the transport of persons rather than for the transport of goods (heading 87.04). These features are especially helpful in determining the classification of motor vehicles which generally have a gross vehicle weight rating of less than 5 tonnes and which have a single enclosed interior space comprising an area for the driver and passengers and another area that may be used for the transport of both persons and goods. Included in this category of motor vehicles are those commonly known as "multipurpose” vehicles (e.g., van-type vehicles, sports utility vehicles, certain pick-up type vehicles). The following features are indicative of the design characteristics generally applicable to the vehicles which fall in this heading:
Presence of permanent seats with safety equipment (e.g., safety seat belts or anchor points and fittings for installing safety seat belts) for each person or the presence of permanent anchor points and fittings for installing seats and safety equipment in the rear area behind the area for the driver and front passengers; such seats may be fixed, fold-away, removable from anchor points or collapsible;
(b) Presence of rear windows along the two side panels;
Presence of sliding, swing-out or lift-up door or doors, with windows, on the side panels or in the rear;
Absence of a permanent panel or barrier between the area for the driver and front passengers and the rear area that may be used for the transport of both persons and goods;
Presence of comfort features and interior finish and fittings throughout the vehicle interior that are associated with the passenger areas of vehicles (e.g., floor carpeting, ventilation, interior lighting, ashtrays).
* * * * * *
Heading 8703, HTSUS, provides for cars principally designed for the transport of persons. There is no dispute that the Breeze LS is classifiable therein; the vehicle possesses several key features typical of vehicles principally designed for the transport of persons, such as seat belts, comfort features in the passenger area, limited cargo space, and absence of a permanent barrier between the area for the driver and the rear area. At issue is the proper eight-digit classification, which requires the application of GRI 6. GRI 6 requires that the GRI's be applied at the subheading level on the understanding that only subheadings at the same level are comparable.
At the eight-digit subheading level, you request classification of the instant
vehicle as an “other” vehicle of subheading 8703.90.00, HTSUS. Also at issue is subheading 8703.10.50, HTSUS, which provides for golf carts and similar vehicles. You argue that the vehicle is subject to a higher standard of regulation as a Low Speed Vehicle (LSV) and is street-legal. Golf carts, in contrast, are not intended primarily for use on public roads, streets, and private roadways.
In appearance, size, and technical specifications, the Breeze LS is similar to vehicles marketed and sold as golf carts, which are generally characterized by their low speed, open sides and back, canopy roof, bench style seats, low capacity engines and small size. See e.g., http://www.clubcar.com/golfoperations/fleetgolf/ pages/precedenti2.aspx (the Precedent i2 Excel, with 3.3 hp, maximum speed of 19 mph, 48V motor…); http://www.clubcar.com/golfoperations/fleetgolf/pages/ dsplayer.aspx (the DS Player Electric, with 3.2 hp, 48 V motor, and 19 mph max. speed…); http://www.yamahagolfcar.com/vehicles/specs/9/1030/49/ electric.aspx (the Yamaha Drive Electric, 3.5 hp, 48 V motor, max. speed 15 mph, independent strut-style front suspension…); http://www.ezgo.com/golf/fleet/freedom_rxv.html (the Freedom RXV, 4.4 hp, 48 V motor, 19.5 mph maximum speed). The Breeze LS, however, possesses features which make it more suitable for use on public thoroughfares than a standard golf cart, such as rear view mirrors, headlights and a higher maximum speed. These features place it in a different class of vehicles than a conventional golf cart, per the National Highway Traffic Safety Administration (NHTSA) regulations.
In HQ 961512, dated April 24, 1998, and HQ H021296, dated April 30, 2009, CBP distinguished between electric vehicles classifiable in subheadings 8703.10 and 8703.90, HTSUS, based on whether the primary purpose and function for which the vehicle is designed is to traverse roadways. In HQ H021296, CBP considered the significance of the versatility of a highly similar low-speed, open-cab electric vehicle. CBP classified the vehicle in heading 8703.90, HTSUS, because, similar to traditional motor vehicles for the transport of persons, it was designed and intended for use on public roads, streets, and private roadways. The vehicle was not primarily for use on golf courses or other off-road terrains. Consequently, classification in subheading 8703.10, HTSUS, was precluded. Similarly, in HQ 961512, CBP classified a neighborhood electric vehicle in subheading 8703.90 based on its design characteristics (including a full body, top speed of 25 mph, and 30-mile maximum range) and intended use.
According to your submission as well as the marketing information available on the Polaris website, the Breeze is capable of and intended to function on low-speed and low density public roadways, and is promoted for such use http://cds012.ch2.cdn.polarisindustries.com/y5b8k2i7/cds/prod/LEV/MY2011/brochure/lev_2011_brochure_full_web.pdf (“The Polaris® Breeze™ SL was built with your on-the-go lifestyle in mind. You can drive in your community or out into town…The Industry’s smoothest street-legal ride”). The vehicle’s top speed of 23 mph and maximum range of 50 miles further indicate a more expansive use than that of a golf cart.
Accordingly, the subject low-speed electric vehicle does not meet the terms of subheading 8703.10, HTSUS, which provides for, in pertinent part, “golf carts and similar vehicles”. It is classified under subheading 8703.90, HTSUS, as a vehicle “[o]ther” than a golf cart or similar vehicle or a vehicle with an internal combustion piston engine.
HOLDING:
By application of GRI 1 and GRI 6, the low-speed electric vehicle is provided for in heading 8703, HTSUS. It is classifiable in subheading 8703.90.00, HTSUS, as “[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: Other.” The column one, general rate of duty is 2.5 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
A copy of this ruling letter should be attached to the entry documents filed
at the time the goods are entered. If the documents have been filed without a copy, this
ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Myles B. Harmon, Director,
Commercial and Trade Facilitation Division