CLA-2-87:OT:RR:NC:N2:201
Satyam R. Talati
Mahindra North American Technical Center, Inc.
275 Rex Blvd.
Auburn Hills, Michigan 48326
RE: The tariff classification of an off-road vehicle from India
Dear Mr. Talati:
In your letter dated July 30, 2021, you requested a tariff classification ruling.
The item under consideration has been identified as the Roxor Off-Road Vehicle (the “Roxor”). The Roxor is an off-road side-by-side (SxS), also known as a utility task vehicle (UTV), or recreational off-highway vehicle (ROV). In your request, you state that the Roxor is equipped with a 2.5-liter turbo diesel engine with 152 cubic inches displacement, which generates 62 horsepower. The Roxor has permanent seat belts for the front passenger and driver seats, and permanent anchor points at the base of the vehicle for installing rear seats with seat belts.
You state the vehicle is not equipped with a panel or a barrier between the driver and the rear area, nor is it equipped with a separate cabin for the driver and passengers. It has a rear cargo space with a swing-style tailgate (not a drop-down tailgate), and a gross vehicle weight rating (“GVWR”) of 3750 lbs. with a rear payload capacity of 349 lbs.
You state that in Model Year (MY) 2018 and 2019, the Roxor was manufactured and assembled in the United States but was only manufactured during the first half of 2020. Since then, the Roxor has not been in production. Beginning during the last quarter of 2021, the majority of the components of the new and redesigned Roxor will be manufactured and partially assembled in India, with final assembly to occur in the United States at your in Auburn Hills, Michigan facility.
In correspondence received on August 20, 2021, additional information was provided. At the time of importation, the following key components of the Roxor will already be assembled: Painted Body, Frame, Driveline, Chassis, Seats, Engine and Transmission. Additional containers will include wheels and tires, door nets and seat belts. To the extent those items can fit in the shipping container with the Roxor, they may also be included therein, but at this time you are anticipating that these items will be in a separate container. The remaining components and parts will be sourced domestically (U.S.) and integrated onto the vehicle during the assembly process here in Auburn Hills, Michigan.
Please note that any additional parts imported, in equal number to the number of Roxor off-road vehicles, in a common shipment may be included in the classification of the incomplete Roxor. Any parts over the number of Roxors, or those parts imported in separate shipments or containers, must be classified separately.
Once imported and transported to the Auburn Hills facility, the wheels, tires, the Rollover Protection System, seat belts, and door nets will be attached, as well as filling all necessary fluids. At this time, additional customer customizations may also be added during assembly such as cabs, windshields, heating/cooling systems, wipers, winches, light bars and other accessories.
Under the above scenario, this office deems it appropriate to classify the incomplete Roxor under General Rule of Interpretation 2(a), which 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 applicable subheading for the Mahindra Roxor will be 8703.32.0110, 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 compression-ignition internal combustion piston engine (diesel or semi-diesel): Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc.: New”. The rate of duty will be 2.5% 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