CLA-2-87:OT:RR:NC:N2:201
Trinity Brian Bolduan
22 Wenonah road
Minnesota City, MN 55959
RE: The tariff classification of a three-wheeled vehicle from China
Dear Trinity Brian Bolduan:
In your letter dated March 28, 2019 you requested a tariff classification ruling.
The item under consideration has been identified as MC-369-250cc, a three-wheeled vehicle.
The MC-369-250cc measures 102.36 inches long by 65 inchs wide by 30.3 inches tall. You state that the vehicle is powered by a 250cc reciprocating single cylinder water cooled engine.
In your request, you suggested classification of the MC-369-250cc as a motorcycle of 8711, and refer to CBP ruling N033526. We disagree. A more appropriate precedential ruling would be N250313, issued February 2014, for the Polaris “Slingshot”. 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….” 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; (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). It appears from the photos that you submitted, that the MC-369-250cc is designed with many of these features. 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.” 8703.21 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 subheading for the MC-369-250cc will be 8703.21.0150, 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 than those of heading 8702), including station wagons and racing cars: Other vehicles, with only spark-ignition internal combustion reciprocating piston engines: Of a cylinder capacity not exceeding 1,000 cc: Other”. The rate of duty will be 2.5% ad valorem.
On July 6, 2018, USTR implemented Section 301 measures on products of China listed in U.S. Note 20(b) of Subchapter III, Chapter 99, HTSUS, which are subject to an additional 25% ad valorem rate of duty. On August 23, 2018, USTR implemented Section 301 measures on products of China listed in U.S. Note 20(d) of Subchapter III, Chapter 99, HTSUS, which are subject to an additional 25% ad valorem rate of duty. On September 24, 2018, USTR implemented Section 301 measures on products of China listed in U.S. Note 20(b) of Subchapter III, Chapter 99, HTSUS, which are subject to an additional 25% ad valorem rate of duty.
Products of China classified under subheading 8703.21.0150, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8703.21.0150, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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