CLA-2-89:OT:RR:NC:N2:206
Byron Nelson Bolton
Westwinn Group Ent Inc.
DBA KingFisher Boats
8160 Highland Road
Vernon, British Columbia V1B 3W6
Canada
RE: The tariff classification of unassembled boat hulls from Canada.
Dear Mr. Bolton:
In your letter dated November 26, 2018, you requested a tariff classification ruling.
The item under consideration is a Boat Kit (Product Number 2625 CXP), which is a complete unassembled boat hull. It consists of variety of aluminum pieces and extrusions that fit together to create a boat hull. The boat hull kits are used to build the KingFisher Falcon, the Weldcraft Angler, and similar motorboats.
You suggested classifying the boat kits in heading 8906 of the Harmonized Tariff Schedule of the United States (HTSUS), which provides for other vessels, which includes hulls.
Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes. GRI 2(a) states, “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.”
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 89, HTSUS, state that this Chapter includes, “Complete vessels presented unassembled or disassembled, and hulls, unfinished or incomplete vessels (whether assembled or not), are classified as vessels of a particular kind, if they have the essential character of that kind of vessel.” Based on the pictorial diagrams you submitted with your request, it appears that the boat kits in their assembled condition have the essential character of an outboard motorboat. As a result, it is the opinion of this office that the boat kits are motorboats of heading 8903, HTSUS, pursuant to GRI 2(a) and ENs to Chapter 89.
The applicable subheading for the Boat Kit (Product Number 2625 CXP) will be 8903.99.2030, HTSUS, which provides for “Yachts and other vessels for pleasure or sports; row boats and canoes: Other: Other: Outboard motorboats: With hulls of metal: Exceeding 5 m in length.” The general rate of duty will be 1% 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 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, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division