CLA-2-87:OT:RR:NC:N1:101
Margaret L. Sundberg, Trade Compliance
Polaris Industries, Inc.
2100 Highway 55
Medina, MN 55340-9770
RE: The tariff classification of a three-wheeled motor vehicle manufactured in the United States
Dear Ms. Sundberg,
In your letter dated February 10, 2014, you requested a tariff classification ruling.
The item under consideration has been identified as the Polaris “Slingshot.”
The Slingshot features a 2.4 liter (2,400 cc), four cylinder gasoline engine mounted to the front of a tubular framed which is covered by plastic body panels. The engine is liquid cooled with a front-mounted radiator. The vehicle has a 5-speed manual transmission with the gear shift lever located on the center tunnel, between the seats. The clutch, brake, and gas pedals are located near the floor on the driver’s side of the vehicle. A steering column mounted ignition key locks the steering wheel and turns the electric systems on/off. The vehicle is started via a start button on the center console. The vehicle is turned off with the key. Fuel is supplied from a 10-gallon fuel tank that is mounted behind the seats.
The exhaust system consists of a cast iron exhaust manifold that flows into a single stainless steel downpipe with integral catalyst. The Slingshot is steered via a steering wheel and has a steering/suspension system which incorporates Ackerman steering geometry.
You state that a power steering assist system will be available on the premium model only. Anti-lock disc brakes are standard on all three wheels. Power is transferred from a driveshaft, to an output sprocket, to a drive belt which is connected to a single rear-wheel assembly. The rear suspension consists of a single shock, centrally located on the swing arm, which is attached to a point on the frame behind the seats.
Externally, the body is not enclosed and there are no doors, back windshield, or side windows.
The interior of the vehicle includes side by side seating (maximum 2 occupants) with seat belts. The driver seat is adjustable fore and aft as well as reclining. The passenger seat is reclining only and the seats are not powered.
Safety features include Automotive Stability Control, Traction Control, Motor Slip Regulation (MSR), Electronic Brake force Distribution (EBD), and front crumple zones designed into the tubular frame.
The cockpit has no floor carpeting or cockpit heater; however, floor mats will be available as an aftermarket accessory. The forward dashboard incorporates a driver cluster (speed gauge, tach gauge, fuel gauge, blinker indicator lights, high/low beam indicator lights, as well as standard engine warning lights). There are two 12-volt power outlets (cigarette lighter type) that can be used to power various electronic devices. The vehicle will not be furnished with cigarette lighters or ashtrays. A glove box in the dash will be standard on all units as well as cup holders mounted to the center column. A radio with MP3 capability (no CD player) will be available as an option or aftermarket accessory. Storage is behind the seats and consists of a backpack sized compartment.
In your request, you suggested classification of the Slingshot as a motorcycle of 8711 because you claim that the vehicle lacks multiple motor car characteristics, such as a roof, side doors, side windows and rear windows, air conditioning, a cigarette lighter, and ashtrays. We disagree.
The Explanatory Notes (ENs) 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 the GRIs.
The ENs to 87.03 states, in part:
“The heading also covers lightweight three wheeled vehicles such as:
those fitted with motorcycle engine and wheels, etc. which, by virtue of their mechanical structure, possess the characteristics of conventional motor cars, that is motor car type steering system (e.g., a steering system based on the Ackerman principle) or both reverse gear and differential…. [Emphasis added]
The classification of certain motor vehicles in this heading is determined by certain features….The following features are indicative of the design characteristics generally applicable to the vehicles which fall in this heading:
(a) 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; [Emphasis added]
(e) 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).
While is true that the Slingshot is not equipped with floor carpeting or ashtrays, you stated in a telephone conversation with NIS 101 on February 18, 2014, that floor mats were offered as an optional accessory and it was pointed out to you that ashtrays are no longer standard in most motor vehicles.
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1. states “ ... classification shall be determined according to the terms of the headings ... .”
General Note 3. (h) (vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.” 8703.23.00 provides for “Motor cars and other motor vehicles principally designed for the transport of persons…: Other vehicles, with spark-ignition internal combustion reciprocating piston engine: Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc.”
The applicable classification subheading for the Polaris Slingshot will be 8703.23.0042, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motor cars and other motor vehicles principally designed for the transport of persons…: Other vehicles, with spark-ignition internal combustion reciprocating piston engine: Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc: Other: New: Having engines with not more than 4 cylinders: Other: Of an interior volume not exceeding 2.4 m3.” The rate of duty will be 2.5%.
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Matthew Sullivan at (646) 733-3013.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division