CLA-2-87:OT:RR:NC:N2:201
Michael V. Jensen
Pride International
20 Bareback Drive
Parkman, WY 82838
RE: The tariff classification of a 1991 Land Rover Defender 90 from the United Kingdom
Dear Mr. Jensen:
In your letter dated August 4, 2020, you requested a tariff classification ruling.
The item under consideration has been identified as a 1991 right hand drive Land Rover Defender 90, VIN# SALLDVAC7HA903696, equipped with a 2.5L turbo diesel engine. In your email on August 5, 2020, you provided a photograph of the VIN plate. You indicated that the Gross Vehicle Weight or as designated in the United Kingdom, the “Train Weight” of 6,050kg or 6.05 metric tons.
You state that this Land Rover Defender 90 was used by the Royal Air Force (RAF) to transport RAF soldiers between on-base locations in the UK. In your request, you also state that the vehicle is designed for passenger use rather than for the transport of goods. We disagree.
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 ... .” Heading 8704 provides for “Motor vehicles for the transport of goods.”
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 87.04 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 (heading 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, but may have rear bench-type seats that are without safety seat belts, anchor points or passenger amenities and that fold flat against the sides to permit full use of the rear platform 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 sports utility vehicles). The following features are indicative of the design characteristics generally applicable to the vehicles that fall in this heading:
Presence of bench-type seats without safety equipment (e.g., safety seat belts or anchor points and fittings for installing safety seat belts) or passenger amenities in the rear area behind the area for the driver and front passengers. Such seats are normally fold-away or collapsible to allow full use of the rear floor (van-type vehicles) 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 a drop-down tailgate (pick-up vehicles);
Absence of rear windows along the two side panels; presence of sliding, swing-out or lift-up door or doors, without windows, on the side panels or in the rear for loading and unloading goods (van-type vehicles);
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 that are associated with the passenger areas of vehicles (e.g., floor carpeting, ventilation, interior lighting, and ashtrays).
General Note 3. (h) (vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.” 8704.22, provides for “Motor vehicles for the transport of goods: Other, with compression-ignition internal combustion piston engine (diesel or semi-diesel): G.V.W. exceeding 5 metric tons but not exceeding 20 metric tons”.
While you state that the vehicle includes bench seating in the rear of the vehicle, equipped with seat belts, an email from Land Rover indicates that the vehicle was built to military specifications with only front belts, as the vehicle was not designed for personnel transport. In addition, you state that there is carpeting on the rear floors as evidence of the passenger carrying purpose. It is clear from the photographs provided, that the “carpeting” is in fact an area rug that has been laid down in the rear cargo area.
The applicable classification subheading for the 1991 right hand drive Land Rover Defender 90, VIN SALLDVAC7HA903696 will be 8704.22.5020, HTSUS, which provides for “Motor vehicles for the transport of goods: Other, with compression-ignition internal combustion piston engine (diesel or semi-diesel): G.V.W. exceeding 5 metric tons but not exceeding 20 metric tons: Other: G.V.W. exceeding 5 metric tons but not exceeding 9 metric tons”. The rate of duty will be 25% 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 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