CLA-2-87:OT:RR:NC:N2:201
Mark R Dawson
LOA Inc.
15205 S Main Street
Gardena, CA 90248
RE: The tariff classification of an unfinished cargo vehicle from the United Kingdom
Dear Mr. Dawson:
In your letter dated April 16, 2018 2018, you requested a tariff classification ruling on behalf of your client, We Are Swell, Inc. of New York, NY.
The item under consideration has been identified as an unfinished cargo vehicle. You state, the item is 134 inches in length, 59 inches in width, 66 inches in height, and weighs 515 kg., and explain that the vehicle was transformed in the United Kingdom, into a “non-motorized” food and beverage service cart. It will be used as a display at marketing events in the USA. The cart is based on the 2013 three-wheeler Piaggio (India) Ape. Your documentation also states the engine, drivetrain, transmission, and fuel system have been removed.
You have suggested that this item should be classified in subheading 8716, HTSUS, as a trailer or semi-trailer. We disagree. Heading 8716 covers trailers, semi-trailers, and other vehicles, non-mechanically propelled.
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 ... ". 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 for Chapter 87 say “An incomplete or unfinished vehicle is classified as the corresponding complete or finished vehicle provided it has the essential character of the latter…for…example:…(b) A motor vehicle not equipped with its engine or with its interior fittings.”
GRI 1 states, in relevant part, that classification shall be determined according to the terms of the headings and any relative section or chapter notes and according to the provisions that follow, such as GRI 2(a), provided that the headings or notes do not otherwise require. There are no legal notes which address motor vehicles without engines and transmissions. In order to be classified as the complete article, i.e., a motor vehicle of heading 8703 or 8704, rather than as a body, chassis, or part of a motor vehicle, the imported incomplete article must have the essential character of the complete article. For example, a "motor vehicle not equipped with its engine, tires, or interior fittings”. In this case, the imported article consists of a chassis frame, body, axles, wheels, and tires, suspension, brakes, steering assembly, and interior furnishings. Therefore, the imported Piaggio Ape has the essential characteristics of a complete motor vehicle.
The applicable subheading for the unfinished cargo vehicle will be 8704.31.0020, HTSUS, which provides for Motor vehicles for the transport of goods: Other, with a spark-ignition internal combustion piston engine: G.V.W. not exceeding 5 metric tons: G.V.W. not exceeding 2.5 metric tons. The rate of duty will be 25% ad valorem.
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 HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division