CLA-2-87:OT:RR:NC:N2:201
Firas Abunabah
Pasando Resources, Inc.
9300 Harwin Drive, Suite C
Houston, TX 77036
RE: The tariff classification of an electric all-terrain vehicle (ATV) from China
Dear Mr. Abunabah:
In your letter dated June 15, 2019 you requested a tariff classification ruling.
The item under consideration has been identified as a 500 Watt ride on electric all-terrain vehicle (ATV), model E-QD03K. In your request you state that this ATV is designed and marketed to children between the ages of 4-8 years old, and suggest classification in 9503.00.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof…Other.” We disagree. The common design and characteristics of the electric ATV lean toward the principal use of this product as being an all-terrain vehicle for recreational use and not a toy principally designed for amusement.
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 ... .” Heading 8703.90. provides for, “Motor cars and other motor vehicles principally designed for the transport of persons…,…: Other vehicles, with only electric motors for propulsion”.
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 state:
This heading covers motor vehicles of various types (including amphibious motor vehicles) designed for the transport of persons; it does not, however, cover the motor vehicles of heading 87.02. The vehicles of this heading may have any type of motor (internal combustion piston engine, electric motor, gas turbine, combination of an internal combustion piston engine and one or more electric motors, etc.).
The heading includes:
(d) Four-wheeled motor vehicles with tube chassis, having a motor-car type steering system (e.g., a steering system based on the Ackerman principle).
General Note 3. (h)(vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.”
The applicable classification subheading for the electric ATV, model E-QD03K will be 8703.80.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motor cars and other motor vehicles principally designed for the transport of persons … , including station wagons and racing cars: Other vehicles, with only electric motors for propulsion.” The rate of duty will be 2.5% ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8703.80.0000, 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, 9903.88.01, in addition to subheading 8703.80.0000, 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