CLA-2-87:OT:RR:NC:N1:101
Steven N. White, General Manager
British American Motor Cars, LLC
1301 6th Avenue West, Suite 401
Bradenton, FL 34205-7435
RE: The tariff classification of replica Land Rover Defenders from the United Kingdom
Dear Mr. White,
In your letter dated April 16, 2013, you requested a tariff classification ruling.
The items under consideration have been identified as three (3) models of newly manufactured replica Land Rover Defenders, models BLR 90, BLR 110 and BLR 130. The numeric designation denotes the original Land Rover Defender model the replica is based upon.
In our telephone conversation of April 18, 2013, you stated that these vehicles are going to be of new construction, incorporating no refurbished or recycled parts from ‘original’ Land Rovers. In addition, with the exception of the engine and transmission, the vehicles will be imported as complete motor vehicles including chassis’, steering/suspension systems, body panels, windshields and windows, bumpers, fuel tanks and lines, exhaust systems, electrical systems, brake systems, lights, interiors, gauges, sound systems, wiring harnesses, wheels with tires, engine compartment components (other than actual engine), hardware kits for customer installation of a compatible engine and transmissions to create a power train, and other components required to meet the customer’s specifications. You also stated that your company does not import engines or transmissions for the purpose of completing the vehicle after importation.
From the information you provided, the BLR 90 is described as either a station wagon or convertible. It is equipped with either 2 or 3 doors and can seat between 4 and 6 passengers. It is designed to have either a 3.2 TD Diesel or 5.0 V8 Petrol fueled engine, with either a 6 speed manual or automatic transmission.
From the information you provided, the BLR 110 is described as one of three configurations: as a station wagon, a pick-up or a double cab pick-up. It is equipped with 2, 4 or 5 doors and can seat between 2 to 9 passengers. It is designed to have either a 3.2 TD Diesel or 5.0 V8 Petrol fueled engine, with either a 6 speed manual or automatic transmission.
From the information you provided the BLR 130 will be imported as a double cab, high capacity pick-up. It is equipped with 4 doors and can seat 4 or 5 passengers. It is designed to have either a 3.2 TD Diesel or 5.0 V8 Petrol fueled engine, with either a 6 speed manual or automatic transmission.
BLR 90 BLR 110 BLR 130
In your ruling request you suggest classification of the BLR 90, BLR 110 and BLR 130 under 8707.10.0020, Harmonized Tariff Schedule of the United States (HTSUS) as “Bodies (including cabs), for the motor vehicles of headings 8701 to 8705: For the vehicles of 8703: For passenger vehicles.”
Classification of goods in the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1. states “ ... classification shall be determined according to the terms of the headings ... .”
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 Chapter 87 state:
An incomplete or unfinished vehicle is classified as the corresponding complete or finished vehicle provided it has the essential character of the latter (see Interpretive Rule 2 (a)), as for example:
A motor vehicle, not yet fitted with the wheels or tires and battery.
A motor vehicle not equipped with its engine or interior fittings
A bicycle without saddle and tires
In addition, the difference in the available configurations changes the ‘type’ of vehicle that is being imported, specifically a vehicle for the conveyance of people, or one for the conveyance of goods. The ENs, in addition to offering guidance in understanding the scope of the headings, also helps clarify the types of vehicles which are to be considered for the movement of passenger or goods. The ENs to Chapter 87.04 state:
The classification of certain motor vehicles in this heading is determined by certain features which indicate that the vehicles are designed for the transport of goods rather than for the transport of persons (87.03). These features are especially helpful in determining the classification of motor vehicles, generally vehicles having a gross vehicle weight rating of less than 5 tonnes, which have either a separate closed rear area or an open rear platform normally used for the transport of goods….Included in this category of motor vehicles are those commonly known as “multipurpose” vehicles (e.g., van-type vehicles, pick-up type vehicles and certain sport utility vehicles). The following features are indicative of the design characteristics generally applicable to the vehicles which fall in this heading:
Presence of bench-type seats without safety equipment…or passenger amenities in the rear area behind the area for the driver and front passengers. Such seats normally fold-away or are collapsible to allow full use of the rear floor…or a separate platform (pick-up vehicles) for the transport of goods;
Presence of a separate cabin for the driver and passengers and a separate open platform with side panels and drop-down tailgate (pick-up vehicles);Absence of rear windows along the two side panels; presence of sliding, swing- out or lift-up doors, without windows, on the side panels or in the rear…;
Presence of a permanent panel or barrier between the area for the driver and front passengers and the rear area;
Absence of comfort features and interior finish and fittings in the cargo bed area which are associated with the passenger areas of vehicles (e.g., floor carpeting, ventilation, interior lighting, ashtrays).
General Note 3. (h) (vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.” 8703.90 HTSUS provides for “Motor cars and other motor vehicles principally designed for the transport of persons…including station wagons: Other,” while 8704.90 HTSUS provides for “Motor vehicles for the transportation of goods: Other.”
The applicable classification subheading for the BLR 90 (station wagon and convertible) will be 8703.90.0000, HTSUS, which provides for “Motor cars and other motor vehicles principally designed for the transport of persons … , including station wagons and racing cars: Other.” The rate of duty will be 2.5%.
The applicable classification subheading for the BLR 110 (station wagon) will be 8703.90.0000, HTSUS, which provides for “Motor cars and other motor vehicles principally designed for the transport of persons … , including station wagons and racing cars: Other.” The rate of duty will be 2.5%.
The applicable classification subheading for the BLR 110 (pick-up and double cab pick-up) will be 8704.90.0000, HTSUS, which provides for “Motor vehicles for the transport of goods: Other.” The rate of duty will be 25%.
The applicable classification subheading for the BLR 130 (double cab, high capacity pick-up) will be 8704.90.0000, HTSUS, which provides for “Motor vehicles for the transport of goods: Other.” The rate of duty will be 25%.
Please note, this classification has no effect on the importability of any vehicle or vehicle parts/accessories deemed restricted; this includes motor vehicles not conforming to Federal Safety and Emission Standards. Any questions regarding the importation of these vehicles and/or parts may be directed to the National Highway Traffic Safety Administration (NHTSA) at 888-327-4236 and/or the Environmental Protection Agency (EPA) at 202-272-0167.
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, please contact National Import Specialist Matthew Sullivan at 646-733-3017.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division